Rio Tinto welcomes release of Policy Transition Group Report

Rio Tinto today welcomed the release of the Report of the Policy Transition Group (PTG) on the proposed Minerals Resource Rent Tax (MRRT).

While Rio Tinto will take time to fully consider the Report’s 94 recommendations it is encouraged to see that many of the key issues raised through the consultation process appear to have been appropriately recognised by the PTG.

Rio Tinto managing director Australia David Peever said that the PTG Report was an important step towards ensuring that the key principles and design elements of the Heads of Agreement between the companies and the Federal Government entered into at the beginning of July were carried through into the MRRT legislation.

“It is fundamentally important that Australia’s future resources taxation regime remains competitive when the MRRT is implemented,” Mr Peever said.

“Rio Tinto wants to invest in Australia. Since the announcement of the MRRT in July, Rio Tinto has announced $8 billion of investment in Australia, including plans for the largest mining project ever undertaken in this country.”

Mr Peever said he was pleased to note that the PTG has recommended that all current and future state royalties be creditable against MRRT liabilities.

Rio Tinto wished to recognise the contribution of all members of the Policy Transition Group, in particular co-chairs Resources and Energy Minister Martin Ferguson and Don Argus. Mr Peever also commended the hard work of the officials involved in the PTG Secretariat.

Rio Tinto will consider the Report in more detail over coming days and continue to work constructively with the Government and the proposed industry-government Implementation Group into 2011 to ensure that the final legislation fully reflects the July 2010 agreement between the industry and the Government.

About Rio Tinto
Rio Tinto is a leading international mining group headquartered in the UK, combining Rio Tinto plc, a London and NYSE listed company, and Rio Tinto Limited, which is listed on the Australian Securities Exchange.

Rio Tinto’s business is finding, mining, and processing mineral resources. Major products are aluminium, copper, diamonds, energy (coal and uranium), gold, industrial minerals (borax, titanium dioxide, salt, talc) and iron ore. Activities span the world but are strongly represented in Australia and North America with significant businesses in South America, Asia, Europe and southern Africa.