Pilbara focussed iron ore miner Fortescue Metals Group Limited (ASX:FMG) has lodged a challenge in the High Court of Australia against the Minerals Resource Rent Tax (MRRT).
The Federal Government says the MRRT is a tax on certain profits from new and existing iron ore and coal projects in Australia which will be imposed at a rate of 22.5 per cent from the July 1, 2012.
Fortescue believes the tax unfairly gives preference to one state over another, contradicting the constitution, and also contradicts the constitution by restricting the state’s ability to encourage mining.
Fortescue’s CEO Nev Power says the company believes it has a good case for challenging the tax on constitutional grounds and looks forward to the resolution by the High Court.
In the first half of its 2012 financial year Fortescue Metals posted a net profit of $789 million.