New tax a ‘serious risk’ to jobs: Rio Tinto

Rio Tinto has told its workforce the WA Nationals’ tax proposal would be a “serious risk” to jobs.

Chris Salisbury vowed that Rio Tinto would do “everything in our power” to oppose the tax. Picture Craig Greenhill.

Mining giant Rio Tinto has warned its workforce that jobs are “at serious risk” if a controversial new tax proposed by the WA Nationals is levied on the miner.

In a letter sent to all Rio Tinto staff today, new iron ore chief executive Chris Salisbury vowed that the company would do “everything in our power” to oppose the $5 per tonne iron ore tax proposed by new Nationals leader Brendon Grylls.

“This new discriminatory mining tax would have a devastating impact on our business at the worst possible time in the commodity cycle,” Mr Salisbury wrote.

Mr Salisbury said the proposed tax, which would only be levied on Rio Tinto and fellow Pilbara heavyweight BHP Billiton, would represent a “massive hit” to Rio’s iron ore business.

“This discriminatory tax grab places the sustainability of our iron ore business and jobs at serious risk,” Mr Salisbury said.

“This tax proposal would have severe knock-on effects on investment, suppliers and communities in Western Australia. Many of us are also owners in the company either as one of 200,000 Australians who are shareholders in the company, or through our superannuation funds.”

Mr Grylls, who ascended to the Nationals leadership on Tuesday, has put forward the new tax as a centrepiece of a policy platform aimed at repairing the WA government’s budget position.