10/11/2011 - 15:34

AMEC welcomes MRRT review

10/11/2011 - 15:34

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AMEC welcomes MRRT review

The Association of Mining and Exploration companies has welcomed the Senate’s decision to send the minerals resource rent tax legislation to a Senate Economics Committee, on the same day it launched a comprehensive advertising campaign against the proposed tax.

AMEC chief executive Simon Bennison said the fact that a Senate Economics Committee would evaluate the Bill recognised the growing awareness of the “inequities” of the tax.

“But it does not change the need for members of the Lower House to oppose the tax or introduce and accept amendments to the Bill to ensure junior mining companies are not penalised or discriminated against as a result of the existing proposed MRRT legislation compared to major miners,” Mr Bennison said.

“This tax is unfair and discriminatory.”

Earlier today, AMEC launched a national campaign on behalf of junior iron ore and coal explorers to draw attention to the “unfair and anti-competitive” nature of the tax.

“The Federal Government has chosen to ignore the significant effect the MRRT will have on small emerging Australian miners, and our many concerns and recommendations have gone unheard over the past 18 months,” Mr Bennison said.

“AMEC is proposing some small amendments to the legislation that could safeguard the industry, give everyone a fair go, and make sure that no-one is discriminated against.

“We hope to convince the independents that this tax is bad tax policy and they should oppose it, but also that minor amendments can be made that could go some way to addressing the unfairness and discriminatory nature of the tax.”

Mr Bennison said AMEC proposed a production threshold of 10 million tonnes of iron ore or coal sold in the MRRT year to act as a trigger point for projects to become eligible to pay the MRRT.

“The most significant point is that small and emerging mining companies should not be required to pay a higher effective rate of MRRT than major global mining companies.”

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