Iron Ore Giants Reject Proposed A$7.2 Billion Mining Tax Hike
- New WA Nationals leader proposes raising iron tax on Rio, BHP
- Plan is ‘ill conceived’ and detrimental to growth: Rio Tinto
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The world’s two largest mining companies rejected a proposed A$7.2 billion ($5.5 billion) tax increase on their Western Australian iron ore operations, saying it’s likely to put jobs and competitiveness at risk.
Brendon Grylls announced the tax proposal after being appointed the new leader of the state’s Nationals party on Tuesday. The plan to raise the production rental cost on Rio Tinto Group and rival BHP Billiton Ltd. to A$5 a metric ton from 25 Australian cents would be a pillar of the Nationals campaign for the 2017 state election, according to a statement.