PERTH (miningweekly.com) – Australian Prime Minister Julia Gillard has hit back at naysayers of the proposed minerals resources rent tax (MRRT), singling out one of the most vocal opponents – mining magnate Andrew Forrest.

Forrest, who is the CEO of iron-ore-miner Fortescue Metals, has criticised the Gillard-led government for seemingly ignoring smaller miners in the designing of the MRRT, by only holding final discussions with BHP Billiton, Rio Tinto and Xstrata.

But Gillard said in a statement that the new tax was informed by two months of consultations with large and emerging mining companies.

“The principles of the MRRT announced were accepted as reasonable by the three companies who participated in the final discussions. However, the government’s decision to adopt those principles was also informed by the consultations that had occurred with many other miners over the previous two months,” she stated.

Gillard said that the new MRRT either met, or exceeded most of the demands, which Forrest called for in June, when he listed a range of demands for a revised resources rent tax.

She said the tax dealt with the issue of doubling the value of spent capital recognised at the starting base, the write-off for new capital, and moving the tax points for projects to the point of mineral extraction.

“Furthermore, the MRRT also excludes all commodities other than iron-ore and coal, and exempts mines earning less than A$50-million in resource profits,” Gillard noted.

The proposed MRRT, which would come into effect in July 2012, if passed through Parliament, has been the subject of constant controversy since it was unveiled after the super profits tax was scrapped.

A Parliamentary senate select committee has slammed the tax, saying that it would be worse for mining jobs and investment than its super profits tax predecessor.

The MRRT controversy was also brought into the public arena when the Association of Mining and Exploration Companies resumed its antitax advertising campaign.

“The government respects the right of mining companies to advertise their position on the MRRT. However, the government urges miners to engage constructively in the MRRT implementation process,” said Gillard on Friday.

“This is the best way to ensure the new regime is designed to reflect the circumstances of miners.”

Gillard noted that the federal government remained committed to achieving a fairer return for the Australian community from its nonrenewable resources, and added that it would continue to engage “constructively” with those mining groups that wished to be involved in the design of the new arrangements to get the best outcome for miners and for the nation.

Gillard’s response to the MRRT criticism comes just days ahead of a planned federal election, scheduled for August 21.

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