Fortescue Metals Group Ltd chief Andrew Forrest is now feeling confident about reaching a deal over the Resources Super Profits Tax (RSPT) with the Australian Government. He has been the foremost critic of the new proposed mining tax so far, even leading the anti tax campaign being run by the mining industry.
It is largely to this campaign that the departure of ex Prime Minister Kevin Rudd can be attributed. His popularity in opinion polls had begun to plummet after he refused to soften his stance on the RSPT.
Fortescue ore being loaded into the FMG Matilda at Herb Elliot Port. Image Credit: Fortescue Metals Group Ltd
The new Prime Minister Julia Gillard took over the Labor party leadership primarily because of her promise to negotiate with the mining industry about the terms and conditions of the tax. Mr. Andrew Forrest mentioned that now enough smart minds were around to reach an agreement on the proposed mining tax.
Fortescue said the revised position was to include increasing the return rate at which the tax kicks in to 15% from around 6%. The full compromise that the two parties will eventually work out is as yet unknown. However both are keen on a quick solution to the problem.