Small miners Atlas Iron Ltd
(ASX:AGO), Gindalbie Metals
(ASX:GBG) and Grange Resources
(ASX:GRR) say that they will pursue exemptions from the Mineral Resource Rent Tax.
According to reports in the Australian, significant changes to the tax were demanded from mine bosses who yesterday met with Resources Minister Martin Ferguson.
Tax exemptions will now apply for mining companies that earn less than $50 million profit per year.
However there will still be approximately 320 mining companies liable for the new 30% tax on profits above an estimated 12% return.
Smaller miners claim that the new tax is favoured towards larger players such as BHB Billiton, Rio Tinto and Xstrata.
Atlas CEO David Flanagan was reported to say that this new deal is one for the big boys and the hurdle rate at which that tax kicks in should be higher.
Atlas Iron Ltd reported a loss of $63.14 million for fiscal 2009.
