Rio Tinto welcomed the release of the Report of the Policy Transition Group on the proposed Minerals Resource Rent Tax.

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 recognized by the PTG.

Mr David Peever MD Australia of Rio Tinto 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. Mr Peever said that "It is fundamentally important that Australia's future resources taxation regime remains competitive when the MRRT is implemented.”

He added that "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.