Mining giant Rio Tinto Ltd
(ASX:RIO) has accused the federal government of being a silent partner in its business as a result of the plan for a 40% tax on mining profits.
CEO Tom Albanese has told the ABC that over half of its balance sheet is threatened by the proposed Resource Super Profits Tax.
Mr Albanese rejected any suggestion that it might be beneficial to have the government as a silent partner because it would not only share in the profits, but compensate miners if they were to make a loss.
However, Mr Albanese says he is prepared to work with Prime Minister Kevin Rudd on a different approach to the proposed tax if he is willing to reconsider the current plan.
Meanwhile, the miner has also criticised the government for using allegedly misleading information in its new $38 million advertising campaign defending the mining profits tax.
Rio says the figures quoted in the advertisements are misleading because they are based on royalties and do not include company tax receipts.
Rio Tinto reported a profit of $5.432 billion for calendar 2009.
