Fortescue takes Australia to court over mining tax
Iron ore miner Fortescue Minerals Group (ASX:FMG) appeared in Australia's High Court Wednesday to begin its challenge of the country's mining tax, reports News.com.au.
The company argues the Minerals Resources Rent Tax (MRRT) breaches the constitution since it does not apply equally to all states.
The government is expected to rebut the claim by saying the tax is imposed at a uniform rate regardless of a mine's location and therefore constitutional.
The 30% profits-based tax on iron ore and coal mine took effect July 1, 2012, and brought in $126 million during the following six months.
Front page image courtesy Fortescue Minerals Group