{ Mining Tax to be Challenged in the High Court }
22.06.12
Fortescue Metals Group today announced that it has lodged a High Court challenge against the Minerals Resource Rent Tax. The challenge is based on Constitutional grounds on the basis that it discriminates between the states and gives a preference to one state over another, restricting a state’s ability to encourage mining. Andrew “Twiggy” Forrest, Chairman of Fortescue, has long been vocal is his threats of a constitutional challenge, vehemently disagreeing with the redistribution of the benefits of the mining boom.
There is also speculation that further miners as well as the West Australian Government may join the challenge. Queensland Premier Campbell Newman has commented that having sought advice, the tax is “bullet proof” and that the Queensland Government would not join any challenge.
An article in The Australian detailing the challenge has quoted a Constitutional law expert as rating their case as difficult to win.
