PERTH (miningweekly.com) – The South Australian Chamber of Mines and Energy (Sacome) has urged minor parties to support the repeal of the minerals resource rent tax (MRRT), slamming the tax as “unfair”.

Sacome CEO Jason Kuchel said on Friday that the MRRT discriminated against South Australia in particular, owing to its vast amounts of magnetite iron-ore, much of which required beneficiation to enable the product to be exported.

He pointed out that the MRRT would affect magnetite miners more than their hematite counterparts. “For this reason Sacome strongly lobbied against the tax, and subsequently for its urgent removal as part of our pre-election demands,” Kuchel said.

Prime Minister Tony Abbott has released draft legislation to repeal the MRRT, expressing the hope that the tax could be abolished by July 1, 2014.

The mining lobby group has urged South Australia-based federal MPs and senators from the opposition and minor parties to support the repeal of the tax, which Kuchel said had created “needless uncertainty, unnecessary administrative burdens, and serious concerns for potential investors in South Australia’s iron-ore projects”.

“Any federal MP or senator who wants to help secure our state's economy should vote for the repeal of this tax,” he added.

The repeal of the MRRT would improve Australia's reputation as a premier investment jurisdiction and South Australia would be a key beneficiary owing to the state’s pressing need for investment and increased business activity generally.

Kuchel said the flow-on effects of investment into, and development of South Australia’s emerging iron-ore projects would have a monumental effect on the state’s economy.

“South Australians need a thriving minerals and energy industry as part of a diverse and robust economy,” he said.

“Our iron-ore sector already plays a part in this, but is set to play a far greater role, with massive flow-on effects for regional communities and South Australia generally, if these developing projects are able to progress."