Iron ore miner Fortescue Metals Group Ltd
(ASX:FMG) CEO Andrew Forrest says the Minerals Resource Rent Tax is designed to benefit the major players in the industry and penalise new entrants.
The Australian Financial Review reports that Mr Forrest told an audience at a conference in Sydney that the tax is designed to penalise infrastructure investment because this is not allowed to be deducted against the tax.
As a consequence only those miners with well established infrastructure will benefit from the tax, many of whom deny third party access.
According to the paper Mr Forrest says this will result in no new mines being established.
Top miners BHP Billiton, Rio Tinto and Swiss giant Xstrata were consulted and worked with the government to broker the Minerals Resource Rent Tax before the election.
Smaller miners and mid-tier miners like Fortescue Metals Group are angry at the lack of consultation afforded them by the Government.
Many like Mr Forrest feel that the Government has not adequately considered the impact of the tax on infrastructure and construction in the industry which is crucial to the development of new mines.
Fortescue booked a profit of $681.62 million for the year to June 30, 2010.
