Mining giant Rio Tinto said that the Australian government should not make changes to the mining tax as the resources sector will remain vulnerable to political attention especially since commodity prices remain high.
Rio CEO Tom Albanese was speaking to Business Spectator when he made the statement.
Mr Albanese said that most forecasters assume that the current strong iron prices are not permanent but still have a few more years before they drop. He said that the high prices will not continue in the future.
In response to the $40 billion bid of BHP Billiton for Potash Corp being rejected by the Canadian regulators, Tom Albanese said that foreign investment would not draw to a halt. Although he expected the resources sector to remain a politically contested industry for some time.
Rio Tinto plans to increase iron ore production by 50% in the Pilbara region taking production to 333 million tonnes over the next five years. Albanese said that it would be shocking for them to see the government go back on what was decided in July. He said that they were putting their faith and confidence in the Australian government to deliver what they had committed to.