MARKET TALK: Former Aussie PM Close To Tax Compromise -Fortescue

29th Jun 2010 08:52

0752 GMT [Dow Jones] Fortescue Metals (FMG.AU) drops a bombshell, claiming that former Australian PM Kevin Rudd was close to proposing a compromise deal over proposed resource super profits tax with miners. The iron ore miner says it expected that Rudd was about to release a revised position on the tax as a discussion paper to the mining industry before his replacement on Thursday by Julia Gillard. Key aspects of revised position in the discussion paper, according to Fortescue, 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. If accurate, Fortescue's expectations would increase pressure on new Prime Minister Gillard to consider the suggested amendments, given one of the reasons cited for replacing Rudd was to improve relations with miners. Prime Minister's office not immediately available for comment to test Fortescue's claims, BHP Billiton (BHP.AU) declines to comment, Rio Tinto (RIO.AU) not immediately available. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires June 29, 2010 03:52 ET (07:52 GMT)