Rio Tinto: Australia mining tax 'sovereign risk'Monday May 24,...

Rio Tinto: Australia mining tax 'sovereign risk'
Monday May 24, 2010, 2:46 pm

SYDNEY (AFP) - Global giant Rio Tinto called Australia's planned new mining tax its top regulatory threat worldwide Monday and linked it to a steep plunge in the country's currency, in a fresh attack on the levy.

Chief executive Tom Albanese said the tax, which has prompted a coordinated opposition campaign by the industry, had already damaged Australia's reputation and would reverberate through the entire economy.

"This is my number one sovereign risk issue on a global basis, and we need to express that as such," Albanese told reporters.

Sam Walsh, head of Rio's vital iron ore division, said Asian customers had expressed "uniform" concern over whether the tax would mean higher prices for raw materials during talks last week at the World Expo in Shanghai.