Fortescue chief: Big miners will pay less under MRRT

Fortescue Metals’ chief executive Neville Power says the controversial mining tax (MRRT) will not raise as much money as the federal government expects.

Power told Business Spectator mining companies would pay significantly less under the MRRT.

“Our concern, though, is that it won’t raise the funds that the government expects it to raise and therefore it will be changed and modified on the run, and we’ll end up with an even worse result which impacts the industry and affects mining investment long term,” he said.

Power said a proposal to abolish the diesel fuel rebate for miners would have a significant impact on Fortescue.

“The whole problem here is that there is far too much preoccupation with looking at ways to tax the parts of the economy that are performing well and nowhere near enough attention and policy being put to how growth in the economy is being stimulated,” he said.

The comments follow Fortescue’s decision to challenge the tax in the High Court.