Australian PM warns of long mining tax battle

SYDNEY – Australian Prime Minister Kevin Rudd warned yesterday of a protracted fight with mining firms over his proposed 40 per cent tax on resources profits, but said the levy would not be withdrawn.

Rudd, whose Resource Super Profits Tax plan has galvanised the resources industry, said talks with miners over the transition to the new system were progressing well but would not be resolved overnight.’We do not expect to land any agreement with the mining industry anytime soon,’ he told reporters in Canberra.’This is going to be a quite long and protracted negotiation over quite a long period of time. Dare I speak of weeks at least, if not beyond.’The centre-left Labour leader, who has been accused of attempting to nationalise the country’s valuable mining industry, said the 40 per cent tax on the profits of the mining industry would go ahead.’I wish to emphasise the government remains fully committed to a resource super profits tax,’ he said.’It is important reform, we remain fundamentally committed to it.’Global miners such as BHP Billiton and Rio Tinto have attacked the tax, arguing it will reduce Australia’s ability to attract investment and was already damaging the country’s reputation.Projects worth billions of dollars have been placed under review since the tax was announced on May 2 as companies assess their viability under the new regime.- Nampa-AFP