Fortescue Says Australia's Rudd Was Close To Resource Tax Compromise

29th Jun 2010 08:30

SYDNEY (Dow Jones)--Fortescue Metals Group Ltd. (FMG.AU) said Tuesday that former Australian Prime Minister Kevin Rudd was close to striking a compromise deal with the mining industry over the government's proposed resource "super profits" tax before he was ousted by his own party and replaced with Julia Gillard. Fortescue said in a statement that it was its expectation that Rudd was about to release a revised position on the tax as a discussion paper to the mining industry before his departure on Thursday. Key aspects of the revised position included increasing the rate at which the tax kicks in to 15% from the long-term bond rate of around 6% and removal of the 40% government guarantee. "It would be a great shame if the finalised outcome of any negotiations between the Gillard government and the mining industry were anything less than what was achieved while Mr Rudd was PM, otherwise his departure will be recognized as futile," Fortescue Chief Executive Andrew Forrest said in the statement. The Prime Minister's office couldn't immediately comment on Fortescue's claims. BHP Billtion Ltd. (BHP.AU) declined to comment, while Rio Tinto Ltd. (RIO.AU) wasn't immediately available to comment. -By Ross Kelly, Dow Jones Newswires; 61-2-8272-4692; [email protected] (END) Dow Jones Newswires June 29, 2010 03:30 ET (07:30 GMT)