It is reported that Ms Julia Gillard prime minister of Australia has toured a north Queensland mine to sell the Mineral Resources Rent Tax. Ms Julia said that there will be further consultation with the mining industry on the implementation of the new resources tax.

Ms Gillard and Mr Wayne Swan deputy prime minister toured the Hay Point coal port in north Queensland to sell the Mineral Resources Rent Tax. The tax, announced on Friday, includes reducing the new impost on mining companies from 40 to 30%.

Ms Gillard said that while some companies are still looking at the details there will be further opportunity for input. She added that "The good faith and good will that we've brought this week as we've sat round a table to get the agreement ... will continue through the process chaired by Don Argus, working with my Minister Martin Ferguson. They will work on the implementation of these new arrangements."

Mr Chris Evans immigration minister has also rejected claims the mining tax could be unconstitutional, saying the Government has advice it is legal. He said that "We believe the tax is constitutionally valid. 'd encourage [Western Australian Premier Colin] Barnett to get on board and help ensure West Australians get a fair share of their resources through this taxation regime."

Mr Barnett told the ABC earlier he believes there is likely to be a legal challenge to the new mining tax. He said that it appears the new tax taxes mineral resources which under the constitution belong to the state rather than company profits.

Meanwhile, the Federal Opposition has questioned the economic modelling of the Government's redesigned tax, saying the figures do not add up.

Mr Tony Abbott opposition leader said that he doubts the government will be able to raise its forecasted revenue now that it has slashed the mining tax rate to 30%. He said that the government needs to explain the figures.

(Sourced from anc.net)