Industry has to live with tax: Rio Tinto

Rio Tinto executive director Sam Walsh says the mining industry has to live with the new resources tax as the best deal that could be done with the current government.

At a breakfast meeting in Perth on Tuesday, Mr Walsh defended his company's role in closing the tax deal, saying junior miners left out of final negotiations now have a chance to have their concerns heard.

The final tax rate had been reduced from 40 per cent to an effective 22.5 per cent rate in the minerals resource rent tax?MRRT?, he told the meeting organised by the American Chamber of Commerce in Australia.

"Clearly, that remains higher than most other mining regimes in countries around the world," Mr Walsh said.

"But it's something that we are going to have to live with, with the current government that's really as best as we can do."

Junior miners were left out of the final negotiations between the government and mining giants Rio Tinto, BHP Billiton and Xstrata on the resources tax.

Mr Walsh, who is Rio Tinto's iron ore chief, said it was a case of representing the mining industry, but doing it with a relatively small number so a conclusion could be reached.

But the negotiating parties recognised there would be a need to take into account direct feedback from junior companies and business houses, Mr Walsh said.

Prime Minister Julia Gillard and Treasurer Wayne Swan had indicated there was flexibility to assist those left out of the final talks, he said.

A process of government consultation with small and mid-tier miners is underway through a committee chaired by Resources Minister Martin Ferguson and former BHP Billiton chairman Don Argus.

"Dare I say, there are certainly some juniors who have expressed concern, there are a lot of others who are really pleased with what we've done," Mr Walsh told reporters after the meeting.

"Certainly the MRRT only applies to iron ore and coal. There's a $50 million threshold in earnings before it triggers.

"I think what we actually achieved is an outcome that will enable us all to get on with life."

Mr Walsh said some were trying to stretch the threshold to $100 million, but that would be for government to decide.

He said the debate over the mining tax had been "quite unfortunate".

"There was actually no meaningful consultation during the process, really, until the last week."

Mr Walsh said the industry always had been prepared to pay its share of taxes and support meaningful tax reform.

Under the original resources super profits tax proposal, the industry was on the back foot and the focus was on allowing mining to continue to be viable in Australia, he said.

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