Former BHP Billiton head Don Argus will be protecting the Australian mining industry as he chairs the mineral resources rent tax (MRRT) consultation panel.

In his first major public speech at the Park Hyatt Melbourne Hotel, Argus emphasized on the importance of developing a taxation framework. The panel chief insisted that a refined mining tax measure has to be beneficial or else the country “will only see foreign investment capital disappear, and reduce the ability for companies to effectively grow their enterprise values.”

Argus, primarily, questioned the terms of reference of the Henry tax review. He said the review failed to consider the GST and wide industry and community consultation.”

“I believe the consultation process set out in the terms of reference for the policy transition group,” he said, “will address the concerns that I have been hearing from some industry participants.”

The MRRT consultation panel head stressed on the importance of economic rent towards assessing the level of the proposed tax system for the mining industry.

Argus argued that the MRRT “should be based on the primary resource value only and not on the value added in downstream transport, logistics and industrial processing and smelting... It is imperative that businesses operating in downstream areas and already subject to company tax and royalties are not adversely impacted for choosing to invest in a manufacturing plant in Australia by a further reduction in their potential commercial returns.”