Fortescue Metals boss Andrew Forrest said prime minister Kevin Rudd now accepted that the iron ore miner was not fear mongering in warning that the proposed resources super profits tax would prevent 30,000 new jobs being created at its Pilbara operations.
Fortescue Metals boss Andrew Forrest said prime minister Kevin Rudd now accepted that the iron ore miner was not fear mongering in warning that the proposed resources super profits tax would prevent 30,000 new jobs being created at its Pilbara operations.
Speaking to reporters after a "long and detailed" 80 minute meeting with Mr Rudd in Perth, Mr Forrest said the prime minister now understood Fortescue fears about the impact of the tax on jobs and investment.
The meeting is also understood to have involved a 45 minute private discussion between Mr Forrest and the prime minister from which even their respective advisers were barred.
"We had long and detailed discussions, it was all about information sharing," Mr Forrest said. "I now believe the Prime Minister knows a great deal more about Fortescue. He knows that when we said there were 30,000 jobs on the line, he now understands why that is, and why that is in fact a conservative number.
"The tax as it exists now cannot help Australia, and I'm grateful for the prime minister for giving me a full and proper hearing so he understands clearly from the horses mouth that there was no bluff, no fear campaign. We literally cannot employ at least 30,000 Australians if this tax were to go ahead."
Last month, Mr Forrest declared the tax would force Fortescue to shelve planned mine developments worth over $17 billion in the Pilbara, costing tens of thousands of future jobs and billions of dollars in future export earnings.
The two projects at risk are Fortescue's planned Western Hub and Solomon projects which were envisaged to produce over 250 million tonnes of iron ore a year - more than either of BHP or Rio Tinto's current operations in the Pilbara.
Mr Forrest declined to comment on the detail of today's discussions, or of his hopes that the government's stand-off with the mining industry could be resolved.
However, he said the prime minister did appear willing to listen to the industry's concerns.
"He was open, convivial and the discussions were detailed, (but) from my perspective we have much more wood to chop," Mr Forrest said. "I think he's open to a process, and let's give that a chance."
Heading into the meeting, Mr Forrest had said he would be defending the interests of every Australian in his discussions, and warning that Mr Rudd was "driving the economy into a swamp, and if he doesn't stop driving he's going to drive it into quicksand".
Mr Rudd avoided reporters after the meeting by ducking out the back door of Exchange Plaza, where the meeting was held, and heading for the airport to fly to the Queensland town of Mackay.
Federal treasurer Wayne Swan also avoided reporters after meeting with a posse of senior WA mining executives elsewhere in the building.
Speaking on ABC Radio earlier today, Mr Rudd again gave no indication that he was willing to consider substantive changes to the tax.
"It's important we spend the time that's necessary to work through the details, the implementation and transitional arrangements and take the time which is necessary," he said.