The contentious 40% mining tax proposed in Australia may prompt listed iron ore giant Fortescue Metals Group - which holds expansive exploration permits around the country - to take a closer look at its holdings here.
Fortescue was reported to have said its focus will move to offshore assets as a result of the proposed new tax on the resources industry, which has prompted an outcry in the Australian mining sector.
Billions of dollars have been wiped from the value of resource sector stocks as investors flee on concerns of the effect of the 40% tax on companies' future earnings.
"We do have offshore assets that we would certainly look at. New Zealand is one example," Fortescue executive director Russell Scrimshaw said.
In August 2008, Fortescue applied for a total 28,000sq km of land in New Zealand, ranging from Southland to Northland (but none in Otago) covering more than 20 mineral types and coal, including a contentious 4000sq km on the West Coast.
About half the Fortescue permits granted were for two-year prospecting rights and the remainder five-year exploration permits, with two permits each in Southland, Taranaki, Canterbury, Waikato, Tasman and Northland and seven on the West Coast, and two more permit-pending applications.
Asked whether Fortescue would stop mining iron ore in Australia as a result of the proposed rise in taxation, Mr Scrimshaw was noncommittal.
"We're not saying that," AAP reported.
"We're saying that we're going to review this when we see what the final cut of this tax looks like.
"At the moment, it's all a little bit confusing, and I don't think there are too many people who clearly understand what it is going to look like."
