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Fortescue seeks to declare Australia’s mining tax unconstitutional

Iron ore producer Fortescue Metals Group (FMG) is challenging Australia’s Minerals Resource Rent Tax (MRRT) at the country’s High Court on constitutional grounds, the company said on Friday June 22.

June 22, 2012
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It argues that the tax is unconstitutional in that it discriminates between Australian states, curtails state sovereignty, and gives preference to one state over another.

The MRRT also restricts a state’s ability to encourage mining, FMG ceo Nev Power said a statement.

“We believe we have a good case for challenging the MRRT on constitutional grounds and we look forward to the resolution of these important issues by the High Court,” he added.

Australian lawmakers in March approved the 30% tax on profits from iron ore and coal mining, which will be imposed from July onwards.