Bloomberg reported that BHP Billiton Ltd, Rio Tinto Group and Xstrata Plc have been called to give evidence to an Australian parliamentary committee investigating the government’s planned 30% tax on iron ore and coal profits.

Mr Mathias Cormann Chairman said the Senate committee which will provide recommendations next June before a vote by lawmakers has asked BHP Chief Executive Officer Mr Marius Kloppers, Rio’s Managing Director for Australia Mr David Peever and Xstrata Coal CEO Mr Peter Freyberg to give evidence.

He said that “They will be appearing. I’m keen for that to happen before the end of the year.”

Following pressure from mining companies, Prime Minister Ms Julia Gillard in July watered down the tax to a 30% levy on iron ore and coal profits from predecessor Mr Kevin Rudd 40% tax on all resources. Key independent lawmakers including Andrew Wilkie who hold the balance of power in the lower house and said her current proposal may be blocked.

Mr Rick Kuhn a political scientist at the Australian National University in Canberra said “The government has backed down on the weaker mining tax and now they have failed to garner the support from these key independents, so it’s embarrassing. The vote is not scheduled until next year, so the government still has time to save this.”

Mr James Rickards spokesman said Xstrata had received the committee request and is determining who will attend. BHP spokeswoman Ms Amanda Buckley and Rio spokesman Mr David Luff weren’t immediately available for comment.

Mr Jac Nasser BHP Chairman said “It is the right of governments to change policy parameters, for example tax regimes, and to decide if, where and when resources will be developed. It is important that a country’s competitiveness, and its attractiveness as an investment destination, in not negatively affected in the process.”

(Sourced from Bloomberg)