Brockman Resources issued a statement today asserting that both its strategic relationship with Sinosteel Australia Ltd and the development of its flagship Pilbara iron ore project remain on track.

Last month, Brockman Resources signed a memorandum of understanding with Sinosteel Corp for offtake from its Marillana iron ore project in Western Australia's Pilbara region. The agreement involves the purchase of up to 10 million tonnes a year of production over an initial five-year period that could be worth more than $6 billion.

Brockman Resources said that it "steadfully refutes" claims that there had been a change in Brockman's strategic relationship with Sinosteel as result of speculation over the possible implementation of the planned 40 per cent resource super profits tax (RSPT).

In the same statement, Brockman Resources expressed its opposition to the RSPT. Brockman Resources Managing Director Wayne Richards said, "Brockman strongly opposes the introduction of the RSPT as it believes it is not in the best interest of Australians either in the short or long-term. Brockman will participate fully in discussions with the Government (both State and Federal), and relevant support committees, regarding the proposed tax and its potential impact on the future development growth of Australia."

Brockman Resources requested for trading halt last Friday pending the release of a response to market speculation on its deal with Chinese steel giant Sinosteel Corp. It was reported in Beijing that Sinosteel is one of the Chinese metals and mining companies that had submitted objections to China's economic planner and Ministry of Commerce against the Australian government's planned RSPT.