Foreign workers to benefit from Australia’s mining boom

Australian Prime Minister Julia Gillard is fighting for an equitable distribution of wealth amid the current mining boom.

Gillard visits workers who are afffected by foreign labour scheme. (Photo: Gary Ramage/ The Daily Telegraph

Gillard told mining bosses at the Australian Mineral Council last night they don’t own the nation’s resources and that she will not back down with her controversial mining and carbon taxes. She said the Government allows them to dig up the earth, but they do not own its wealth.

The AAP said Gillard told her audience the need for a tough leadership to spread the benefits of the boom.

I know that not all of you in this room are in love with the language of ‘spreading the benefits of the boom’.. .Australia needs tough leadership and I think you know by now I’m prepared to fight….

About $500 billion of investment is currently in the pipeline and Gillard said there is no better place in the world to invest in than Australia.

Australia is ready to take advantage of the mega profits and to spread the wealth through taxes. However, taxing appears to be insufficient in the face of local labour shortages.

Association of Mining and Exploration Companies chief Simon Bennison admitted there are many people who are not qualified triggering unrest among labour unions led by the Australian Council of Trade Unions.

Australian media has announced mining magnate Gina Rinehart has already applied for the Federal Government’s Enterprise Migration Agreement (EMA) which would allow “mega” resource projects to import temporary foreign labour.

Mining magnate Gina Rinehart is the first to apply for EMA (Photo: ABC)

The EMA is another controversial scheme approved by the Federal Government without consultation from the labour sector.

Rinehart needs workers to work for the construction of her Roy Hill iron ore project in the Pilbara region.

The EMA would allow mega resource projects to source 1715 of its 8415 workers needed during its three year construction phase from overseas. The Daily Telegraph said the foreign workers would likely come from “the UK, Europe, India, China, South Korea and the Philippines. At least 6758 Australians will be employed on construction, including 2000 trainees. ”

Bennison said huge mining projects may qualify for an EMA to allow them “to import workers, needed skilled workers ready to work, who simply did not exist in Australia.”

Bennison said the majority of workers that were needed to meet demand in the industry were tradespeople such as welders and plumbers. “Training them up takes time,” he said.

Blog Link: ASIAN CORRESPONDENT

Kimberly gas hub sparks nationwide protests

The dream of Western Australia to transform Broome into a dazzling New Dubai faces no paved road. The multi-billion Woodside Petroleum’s gas hub has ignited intermittent tensions between local residents and the police.

Premiere Barnett dispatches police to support Woodside, Shell, Chevron, BP, BHP-Billiton, Mitsubishi and Matsui on the road to James Price Point. (Photo: Damian Kelly)

The State Government dispatched a strong 140-200 police to James Price Point this week alerting  Green activists nationwide to join forces with Broome residents in opposing the $40 billion gas deal. Local residents say the sight of police presence has become too scary. Others call it a State Government’s “bullying”.

Whether there is a government-business collusion in return for a huge kickback, it is yet to be known. One thing is evident though– West Australian Premier Colin Barnett denied he ordered the police dispatch. He said it was the “operational decision” made by Police Commissioner Karl O’Callaghan.

Protest camp spokeswoman Vivienne O’Shea describes it as “unnecessary” adding that it the State Government is “spending such a colossal amount of taxpayer money to basically frighten the Broome community.”

Broome residents are against gas on Mothers’ Day (Photo:Glen Klatovsky)

Wilderness Society Kimberley campaign manager Glen Klatovsky said it was a waste of police resources and taxpayer money to send police “to crush the Broome community” which had already been traumatised by last year’s heavy-handed use of police and Woodside’s own private security force.

Today, Tasmania has also joined the action. Led by the Huon Valley Environmental Center and The Last Stand, a vigil at Pier 1 of Macquarie Wharf, Salamanca from 5 pm was held as a gesture of support to Broome residents. Video on Kimberly is likewise featured.

In a press release, Jenny Weber, a spokesperson of the HVEC said Tasmania is joining other citizens from other cities across the nation including Adelaide, Brisbane, Melbourne, Perth and Sydney, to support the people of Broome in their fight to protect one of the most spectacular places in the world.

Ula Majewski of The Last Stand also said, “Tonight, the people of southern Tasmania will be standing strong in spirit with this inspiring community in the far north west of the country. We are demonstrating our absolute support for these outstanding citizens who are taking a stand for the Kimberley, one of our most ecologically and spiritually significant landscapes.”

One of the idyllic beaches of Kimberly (Photo:ACF)

The Australian Conservation Foundation said the Kimberley is too precious to lose with its rich mineral deposits along with its historical and cultural value.

ACF believes the proposed location of the Browse Basin gas hub at James Price Point on the Dampier Peninsula will have a significant environmental impact. The peninsula’s western intertidal zone has been included under National Heritage in recognition of its extensive dinosaur trackways, but it remains in threat by the development of the gas hub.

Blog Link: Asian Correspondent

Australian Koalas on danger list

Oprah Winfrey cuddles a koala during her trip to Australia in 2010. (Photo: AP)

Australia’s iconic bear– the koala –will become extinct in 10 years unless a national protection is given, Green activists have warned.

The Friends of the Earth and the Gippsland Bush have slammed the Federal Government for its failure to enlist the koala in the Gippsland region of Victoria under the nationwide endangered species list.

Minister for Sustainability, Environment, Water, Population and Communities Tony Burke said on Monday koalas in Victoria and South Australia should not be listed due to their abundant numbers in the said regions.

He admitted though that the marsupial is facing possible extinction in three states such as Queensland, New South Wales and the Australian Capital Territory. Real estate developments in recent years are said to have primarily displaced them from their natural habitat.

More than 40 percent of the specie is reported to have disappeared in Queensland while it dropped by third in NSW over the past 20 years. In the ACT region, koalas have completely disappeared, the SMH also reported.

Sam the koala became famous around the world after this photo was taken during the Victorian bushfires. (Reuters)

Koala advocates led by the Australia Koala Foundation have been pushing for the enlistment of the specie under endangered category since 1996, but the federal government has been ignoring the issue.

Last year, Greens Senator Larissa Waters had pushed for the marsupials to be listed as a nationally-threatened species believing that they are threatened. She said that with fewer than 5000 koalas left in south-east Queensland, for example, the senator believes that koalas along the koala coast may become extinct during the next 10 years.

However, until now, the Environment Minister is not convinced that the specie should be listed under the national endangered list. He said out that that while koalas have disappeared in the three states, the animals abound in Victoria and South Australia.

He, therefore, announced that koala has been listed under endangered species category covering the three states, but not a national listing following a three year scientific assessment by the Threatened Species Scientific Committee He said a species is usually not considered endangered if it is bountiful in some locations.

Following the announcement, the FOE and the Gippsland Bush blasted Burke for not listing the Gippsland’s Strzelecki Ranges koala as endangered or vulnerable.

In a media statement, the Green activists said the future of the Strzelecki Koala is “bleak” adding that the specie has lost 50 percent of its habitat in the past decade due to logging and fire.

FOE spokesperson Anthony Amis said almost the entire habitat of the Strzelecki koala is in private hands. He said the Hancock Victorian Plantations has converted close to 10,000 hectares of koala habitat over the past 14 years. Add to this was the 2009 Churchill and Boolarra bushfires which burnt out approximately 20,000ha of koala habitat.

Hundreds, if not thousands, of Strzelecki koalas were killed during those fires. After 14 years of logging key koala habitat, Hancock Victorian Plantations still do not have a koala management plan, and 75% of logs from the Strzelecki Ranges end up at Maryvale Pulp Mill owned by Nippon Paper.

The activists groups claim that most of Victoria’s koalas are translocated from the South Gippsland to the French Island in the 1880′s. These koalas are said to have a low genetic diversity compared to the only native koala population which is based in the Strzelecki Ranges.

Amis is convinced that the “genetically superior Strzelecki koala” holds the key to the preservation of the species in Victoria, because translocated koalas suffer from a range of problems, many of which are the result of inbreeding.

The Strzelecki koala does not suffer from the problems of inbreeding which makes it more robust than its translocated cousins. “Its population is clearly unique in the context of Victorian and South Australian koalas. This simple fact appears to have eluded the Minister.”

Environment Minister Tony Burke during a media ambush interview. (Photo: News Corp)

In a related development, the Envronment Minister lashed out at the new Queensland Priemere Campbell Newman who released a statement claiming the koala protection law as a “needless duplication” and a “mindless red tape.” Newman claims that the environmental law will only serve as a red tape to potentially slow down the construction industry.

Blog Link: Asian Correspondent

Xstrata’s video parody backfires

Australia’s mining giant, Xstrata Coal, is reported to have written Mumbrella, an online  discussion site of “everything under Australia’s media and marketing umbrella” this week. The letter contains a threat of a legal defamation suit over a published video parody on Australia’s mining business allegedly posted by Mumbrella.

The Australian confirmed the letter to be genuine. Tom Cregan, legal counsel of Xstrata, wrote Mumbrella Editor Tim Burrows:

We therefore require that the video…..(and on any other website hosted by Mumbrella or YouTube) be removed immediately and remind you that all persons involved in the publication of defamatory material are equally liable for defamation. We also observe that the reproduction of the whole of the video taken from www.thisisourstory.com.au appears to constitute a breach of copyright.

The video has been deleted due to defamatory allegation.  It is purportedly produced and posted as a union campaign by former Chaser member Charles Firth. It was deleted from the Australian Manufacturing Workers Union’s You Tube account in early December after a complaint from Xstrata.

As early as December, however, activist groups have put up a new site featuring a collection of parodies on Australia’s mining industry, This is the Real Story. Similar videos are also posted on You Tube, including this one:

http://www.youtube.com/watch?feature=player_embedded&v=b5pmbicsvhQ

The site comes with a Facebook page which is nearing a thousand fans.

This is the Real Story claims to be a site put up by a group of concerned satirists comprising of the Australian Satire Institute of Australia, the Chamber of Satire Studies (NSW), Queensland Satirical University, the Royal College of Japery (WA), Federal Council of Satirical Councils (Federal Branch).

“Together our member organisations comprise over 85% of all satirical output in Australia. These are the real stories about what Australian mining is doing to the economy. …These are the real stories about what Australian mining is doing to the economy,” the site claims

The main video voices over the claim of how good to do business in mining—to dig up the wealth of the earth and export it overseas. It also voices over a parody where to get mining workers– from overseas labor or indigenous which are far much “cheaper.”

The site is sponsored by the AMWU and is supported by activist groups,  GetUp! and Fair Go for Billionnaires.

The site compiles collection of video parodies about “the real stories in Mining” including that of Clive Palmer claiming the CIA to be involved in Australia’s mining conspiracy.

While mining export boom should be a good news, local workers, indigenous communities, and Green activists have been on the rise to oppose mining.

Al-Jazeera also has produced a film on the mining ventures currently being undertaken in Australia. The video claims that while natural resources are powering Australia’s economy to record highs, there is a dark side to the mining boom.

Australia is blessed with rugged beauty and a wealth of natural resources – including coal, iron, natural gas and gold. Such minerals are powering Australia’s economy to record highs. And as demand from China for more resources grows, new mines continue to open across the country. But critics say there is a dark side to this success story. Mining regions attract transient workers keen to make a quick buck, creating social and environmental problems and a rising crime rate. Mines are also draining Australia’s pool of skilled labour from other industries and driving up wages. 101 East asks: What is the cost of Australia’s mining boom?

http://www.youtube.com/watch?feature=player_embedded&v=ewpuCPvkVmg

To get involved  and get updates directly into your inbox, you can subscribe stories from the organisers.

Blog Link Asian Correspondent

Take action against forests burning!

Forests shouldn’t look like these, should they?

The Huon Valley Environment Centre (HVEC) has launched a campaign against burning forests today. Community Members ignited 20 flares on the lawns of the Hobart’s State Parliament as a sign of protest.

Tasmania's forests is burning. (Photo:HVEC)

 HVEC spokesperson Jenny Weber said in a press release, “The community has demonstrated today to call for a ban on the environmentally disastrous logging burns.” HVEC claims these “regeneration burns” pollutes the world’s cleanest air turning it into a health hazard. “The entire state of Tasmania has to suffer air pollution and climate impacts, because Forestry Tasmania and the logging industry continue to pursue the archaic, ecologically unsound practice of logging andburning in the forests,”

Tasmaia's forests billow in smoke. (Photo: Huon Valley Environment Centre)

HVEC today launched an online action that will provide citizens the avenue to write to the State and Federal Ministers for Health and the Environment and the respective Attorneys General,calling on them to introduce legislation to ban the practice of “regeneration burns” in Tasmania.

“Tasmania needs a breath of fresh air and the Huon Valley Environment Centre is calling for a ban on the forestry industry’s“regeneration burns,” Weber said.

The HVEC urges community to take action against forest burning. (Photo: HVEC)

The community opposes the practice of polluting the air, threatening health and environment and damaging the clean green brand of Tasmania.

“Forestry Tasmania’s clearfall and burn method is destroying thenatural forest ecology to turn it into a loggers wonderland, at the same timethat it is dumping massive amounts of carbon into the atmosphere and pollutingpeople’s lungs with particulates that are injurious to health,” Weber said.

Link to the cyber action; http://banforestryburns.good.do/

Link to background briefing; www.huon.org/bantheburns

Australian Greens face tough times: Abbott

While Australian Greens Leader Bob Brown is gone, Opposition Leader Tony Abbott warned the Greens- Labor Coalition would face “turbulent times” saying Brown acted more like a prime minister.

The Daily Telegraph said Brown quitted before the storm on carbon tax which will take effect in July this year. The paper said this is where the broader public may react badly to Brown’s departure, and where Gillard will become vulnerable.

Many will simply view this as Brown, a figure a majority of people believe is the quasi-deputy leader in a Labor-Greens alliance, leaving the sinking ship before it runs aground. Tony Abbott will make easy work of a perception that the man responsible for forcing the government to introduce the carbon tax doesn’t even want to stick around to see it start.

Resigned Bob Brown walks away with the party’s new leader, Christine Milne (Photo: Andrew Meares)

PM Julia Gillard accepted Brown’s resignation last week as Deputy Christine Milne took over the helm with Lower House MP Adam Bandt later voted in as her replacement. Brown will also quit as a Tasmanian Senator when his term expires in June. He will not seek for re-election.

Brown said he is happy to go after 16 years in public service taking active role at the forefront of Australia’s environmental campaigns. He turned his party an icon of “innovation.”

With Brown, the Greens became Australia’s third political party and used its heft to bargain with a minority Labor Government and gain the balance of power in the Senate, The Punch commented. The Greens have also been instrumental in the implementation of a carbon tax. Brown leaves the Greens in historically high numbers in the parliament, with a total if 10 members in the House of Representatives and Senate. Brown said:

“I am 67. I am aware that one should always make room for renewal in politics. A democracy is the healthier for the turnover of the depth of talent there is in its community,” he told reporters at a press conference in Canberra.

He added he will leave public office to enjoy his private life, but he will remain Green as long as he lives. He said one of his upcoming plans is to visit Miranda Gibson who has been perching on a tree to keep vigil on Tasmania’s forests.

The tree observer, Miranda Gibson, has been holding vigil on a makeshift house perched on a tree. This photo is taken by Brown himself.

However, Brown could not elude critics on his “untimely” resignation amid crumbling pubic support for Australia’s green projects. Oppositions to the carbon tax claim Brown is playing safe before the storm. The carbon tax passed the Senate in November 2011 and will take effect in July this year. Prices of goods and services across the nation are predicted to spiral as a result.

As a warning for the Labor-Greens coalition, the Labor Party was already massacred in the recent Queensland state election. The new Australian Liberal Party’s State Government is now dumping green schemes initiated by the former Labor premiere.

In Canberra, federal government offices are cutting budgets that may result into mass layoffs reducing the number of employees and projects in areas related to environment.

National secretary Nadine Flood said that some work in areas such as renewable energy, energy efficiency and industry assistance programs would ”simply not be done”, the Canberra Times reported.

The same paper added, “The Community and Public Sector Union, while unable to confirm the latest job cut figures, said reducing numbers to 470 would be a massive blow for staff and would seriously damage Australia’s ability to deal with the impacts of climate change.”

At the party’s Third Annual Green Oration delivered on March 23 this year, Brown addressed the “Earthians” to get involved in finding solutions to the shrinking resources of the planet while its citizenry is growing to an unparalleled proportion beyond what the planet can sustain.

He proposed that for the Earth to be able to survive in the next millennium, a “comprehensive Earth action, an all-of-the-Earth representative democracy is required. That is, a global parliament.” He added, “So democracy – ensuring that everyone is involved in deciding Earth’s future – is the key to success. “

The Punch’s editor-in-chief reacted to the speech as out-of-this-world political ramblings.

…the phrase “Fellow Earthians” was a deep ecologist ramble across a range of themes, including the possible existence of aliens, the disappearance of the dinosaurs, the fact that Bob saw a shooting star the other night and believed it was a portent heralding a new form of participatory democracy. It has been covered at length elsewhere and should you be up for a laugh, please read it in its entirety…

Australian Greens rally at the Parliament House in Canberra in 2008 (Photo: Australian Greens)

Greens Reactions

Green organizations commended Brown’s advocacy to environment, gay marriages, refugee and asylum seekers, and other issues related to social and economic equality.

SBS noted the Wilderness Society described “Brown as an inspiring leader for the Australian environment movement and a champion of wilderness protection during the past 30 years.”

Greenpeace also said Senator Brown would be remembered by future generations for his efforts to protect Australia’s natural heritage.

“He has been a steady voice of reason in a parliament dogged by vested interests and shortsightedness,” program director Ben Pearson said in a statement.

Gay advocates have called Bob Brown one of Australia’s great gay heroes.

While Milne and Brandt take the helm of the party, the Greens are also looking for possible candidate for the June election.

A potential candidate to replace Brown would be Peter Whish-Wilson, a Tamar Valley winemaker who grew up in Karratha who claimed to have worked for BHP Billiton. He said he has experience in small business, markets and global finance which will make him a different sort of Green.

“This is the biggest opportunity for us to create jobs growth and we have to incentivise companies to do the right thing. I don’t see Tasmania just through tourism: there have to be other directions and opportunities…“I am more for opportunity than opposition,” the Financial Review quoted Whish-Wilson as saying.

The Australian said Milne will seek to establish a new political support base among rural Australians and “progressive” businesses as part of an intensified campaign against the “vested interests” of the resource-based economy.

Senator Milne has also attacked the major political parties as captives of the resources sector, and savaged the “rapaciousness” of mining companies, vowing to dedicate her leadership to hastening a transition to a low-carbon economy.

BLOG LINK: Asian Correspondent 

GetUp! rallies behind Swan on mining tax

“Politicians have a choice… between standing up for workers and kneeling down at the feet of the Gina Rineharts and the Clive Palmers …”  – Wayne Swan, The Monthly, March 2012

Here’s from the email inbox:

The Government is talking tough about the need to ensure all Australians benefit from the resources we own. But here’s the stark truth: Over the next three years, as the Minerals Resources Rent Tax brings in $10.6 billion from the mining industry, around $8.5 billion will be handed back to them in tax concessions and loopholes!

Wayne Swan is making critical decisions over the next few weeks in an attempt to reach a budget surplus in 2012/13. As we’ve seen at budget time in years past, ideas are floated out in the weeks leading up to the budget to see how the public responds. Just this morning, news outlets began running the story that perhaps mining subsidies would be cut in the upcoming budget. As Wayne Swan takes the public’s temperature on this issue, let’s turn up the heat on him.

Can you make sure Swan stands up for workers by ending mining handouts? Chip in to put this ad on the air so that he hears from everyday Australians instead of mining magnates:

http://www.getup.org.au/end-billionaire-welfare

Mining magnates such as Clive Palmer and Gina Reinhart continue to rake in record profits at the same time as receiving billions of dollars in handouts (our tax dollars) from the Government.

Each year, mining subsidies on offer include (but are not limited to): – $1.89 billion under the Diesel Fuel Tax Credit Scheme [1] – $330 million under the exploration and prospecting deduction [2] – $250 million via an accelerated deprecation scheme that lets them write down their assets early [3] – $390 million in various research & development deductions [4]

This billionaire welfare is occurring at the same time as nurses, teachers, aged-care workers and other public sector workers face further budget cuts.

That’s why we’ve made an ad that highlights the stories of the people who really deserve the Government’s aid – people working for public interest, not vested interest.

Can you help get their message on TV screens before it’s too late?

http://www.getup.org.au/end-billionaire-welfare

It’s safe to say that at some point in our lives – if it hasn’t happened already – we’ll all depend on people like Clare, Michelle, Janice and Inge. It’s not right that they continue to work hard and pay taxes week in and week out, facing budget cuts and staffing shortages – only to have that money handed over to Clive and Gina so they can become even richer.

We can put a stop to it. Ask Wayne Swan to put our money where his mouth is and end handouts to big mining: http://www.getup.org.au/end-billionaire-welfare

Thanks for standing up for what’s right, for the GetUp team.

PS – With just weeks to go before the budget is handed down, the word out of Canberra is that key meetings to discuss policy options like ending mining subsidies are occurring over the next few weeks. Can you help us get this ad on the air as these important decisions are being made? http://www.getup.org.au/end-billionaire-welfare

Sources: [1] ‘Taxation Statistics 2008-09’, Australian Taxation Office. 2011. p 14 [2] ‘Tax Expenditures Statement 2011’,  The Australian Government the Treasury. January, 2012. p. 108 [3] ‘Drill Now, Pay Later’, Australian Conservation Foundation. September, 2011. p. 8 [4] ‘The Berd in the Hand Report’, Australian Business Foundation. April 2011. pp 18 – 25

Record participation for Earth Hour 2012

Here’s a press release of the WWF Australia:

Tonight’s the biggest ever Earth Hour with a record 147 countries and territories are preparing to send a united message that now is the time to take action for the planet.

Hundreds of landmarks across more than 5,000 cities and towns will go dark at 8:30PM on Saturday local time, with Libya, Algeria, Bhutan and French Guinea among those participating for the first time.

Earth Hour began in 2007 as a one-city initiative in Sydney, Australia and has since grown to be the world’s largest voluntary action for the environment.

In Australia, cities across the country will go dark with 151 towns and cities signed up including, for the first time, the Torres Straight Islands, Christmas Island, and the Territories of Cocos Keeling Isles. The Prime Minister Julia Gillard has also lent her support to Earth Hour this year, saying “what began in Sydney as a simple idea to raise awareness of climate change – has become a global success.”

A number of other prominent Australians are also supporting Earth Hour this year including Sydney Lord Mayor Clover Moore, Isabel Lucas, Peter Garrett MP, Bill Granger, Miranda Kerr, Missy Higgins, Bindi Irwin, Laura Andon and Lizzy Lovette.
Around the world prominent supporters for this year’s Earth Hour include cricket legend Sachin Tendulkar, UN Secretary-General Ban Ki-moon, Greenpeace International Executive Director Kumi Naidoo, former Vice President Al Gore, The Director General of UNESCO, Irina Bokova, the President of Fiji Ratu Epeli Nailatikau, and astronaut André Kuipers who will take part in Earth Hour from the International Space Station.

Read on….

Sustainable Housing

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Sustainability is the capacity to endure. For humans, sustainability is the long-term maintenance of responsibility, which has environmental, economic, and social dimensions, and encompasses the concept of stewardship, the responsible management of resource use. In ecology, sustainability describes how biological … Continue reading

Australia’s mining tax and CIA conspiracy

The mining tax has dominated Australia’s political landscape this week.

The Senate passed the mining tax on Monday imposing a 30 percent tax on super profits generated by mining companies from coal and iron ore. The tax revenue will be used to elevate income and pension funds of the less well-off Australians and to cut tax on small businesses.

This sent shockwaves to the mining industry which could have been rejoicing over mining boom worldwide.

Mining magnate Clive Palmer hits CIA of mining conspiracy

Queensland mining magnate Clive Palmer lashed out at the federal government and claimed the CIA is behind the mining tax as part of America’s conspiracy to kill Australia’s coal industry.

Palmer also accused the Greens as “tools” of the US government and the environmental activists group, Greenpeace, is funded by the Rockefeller Foundation.

He said he will lodge a double High Court challenge on both carbon and mining taxes.

But his accusation hits back like a boomerang.

The CIA via ABC email denied his claim prompting him to back away from inflammatory comments, Fairfax reports via SBS.

Crikey, an alternative online media said,

Now Clive Palmer again has demonstrated the eccentricity that comes from having so much money you don’t have to care what anyone thinks of you…

Palmer is doing no more than continuing Queensland’s rich tradition of conspiracy theorists, which has produced the Citizen’s Electoral Council and Pauline Hanson, to name only the most prominent of recent years. Nor is it the first time he’s accused people of being a CIA front — back in November, it was American Express who were doing the bidding of the spooks.

Palmer could probably find consolation in knowing another mining group, Fortescue Metals, confirms it has sought legal advice ahead of plans to mount a High Court challenge against the Federal Government’s mining tax, News Corp said.

Chairman Andrew Forrest of Fortescue Metals leads a protest against mining tax during Kevin Rudd’s time

Fortescue claimed the MRRT is a poorly designed tax, drafted by the big miners behind closed doors to minimise their tax exposure at the expense of the rest of the industry,” the company said in a statement.

The Government is also facing a revolt from Liberal-led mining states.

Western Australia’s Premier Colin Barnett, for one, says he will support any legal action against the tax.

Not Amused

Newly appointed Foreign Minister Bob Carr blasts Palmer’s “reckless” CIA conspiracy claims

He said the “recklessly irresponsible” claim that the CIA is sponsoring a campaign against the coal industry will trigger concern from the United States government and business community.

Carr said the comments should also make many Australians question  Palmer’s links to the Opposition. He said Palmer is very close to Opposition Leader Tony Abbott and Palmer is considered the largest donor to the Liberal Party.

Foreign Affairs Minister Bob Carr

Treasurer Wayne Swan has also denounced Palmer’s claims. He supported Carr’s claim the mining businessman “is in cahoots with Mr Abbott.”

Federal Greens leader Bob Brown has echoed the remarks of Carr and Swan saying Palmer is a life member and a major donor to the Queensland Liberal National Party.

Meanwhile, Greenpeace senior campaigner John Hepburn rejected Mr Palmer’s comments as “ludicrous”. He said Greenpeace would not accept money from any government, corporation or secret service.

The mining tax was initiated almost two years ago, floated by former Treasury boss Ken Henry. It originally proposed a 40 percent tax on super profits—a proposal that stirred an industry-wide opposition rocking the Labor Party’s leadership. It was the same tax proposal that ousted Kevin Rudd from prime ministership in 2010.

Rising to power, Prime Minister Julia Gillard negotiated a modified tax rate with BHP, Rio and Xstrata although smaller miners remain unhappy with the deal.

The Mineral Resources Rent Tax (MRRT) Bill 2011 and related bills are now ready for the governor-general’s royal assent. The mining tax will start from July 1 this year, Australian media report.

The federal government estimated the new tax will generate $11 billion in three years which will be used to elevate income of the less well-off Australians. It will boost compulsory superannuation contributions, infrastructure payment and a one per cent tax cut for business.

The Australian, however, is pessimistic over the tax. Its editorial page said:

While this newspaper recognises the benefit in ensuring that some of the revenue generated by the once-in-a-generation mining boom is secured for future generations, this tax will do little to drive reform in the slower sectors of the economy while the fastest-growing sector is slugged with a tax that could damage our competitiveness.

Opposition Leader Tony Abbott supports Palmer

I defence of Palmer, Abbott said he was a “larger than life” character.

“I think when he says that the Greens want to stop the coal industry he’s absolutely right – of course the Greens want to stop the coal industry,” Abbott told Channel 10.

Abbott is vowing to repeal the tax if he wins the next election.

Blog Link: Asian Correspondent