Epstein Files Uncover Mandelson's Involvement in Australian Mining Tax Battle
Fresh revelations from the Jeffrey Epstein document release have exposed former UK Labour minister Lord Peter Mandelson's active support for a campaign to undermine Australia's proposed mining super profits tax under then-prime minister Kevin Rudd.
Private Email Exchange Reveals Strategic Advice
The documents contain a June 2010 email in which Mandelson shared strategic analysis with Epstein regarding the Australian mining industry's fight against the Rudd government's proposed 40% tax on mining super profits. Mandelson had just lost his position as first secretary of state following Labour's defeat in the May general election when he sent the correspondence.
In the email, originally sent to a redacted recipient on 8 June and forwarded to Epstein five days later, Mandelson included private analysis from then-XStrata chief executive Mick Davis about the industry's strategy. Mandelson urged building "the broadest possible coalition" to pressure the Australian government to abandon the tax proposal.
"The pressure which the industry has applied, with the strong focus on jobs and social impact, is clearly having an effect on a government which is already under pressure," Mandelson wrote, adding that "this pressure needs to be maintained so that everyone understands the clear consequences of the government's proposals."
Political Strategy and Compromise Considerations
Mandelson offered nuanced political advice, warning against framing the debate as a question of "who governs Australia" - voters or mining companies. He acknowledged the fundamental rationale for the tax was difficult to oppose, stating "there is no ideological reason why the industry should not be making a greater contribution to society, especially given the constrained economic times."
The former minister suggested the Rudd government should be given opportunity to compromise, noting "the Rudd government will want to (or at least give the impression) that they are conceding from a position of strength, not weakness." He recommended securing a compromise before the issue became central to election campaigning.
Political Consequences and Tax Replacement
The mining industry's campaign proved remarkably successful, contributing to political instability that saw Rudd replaced by Julia Gillard as prime minister less than two weeks after Mandelson's email to Epstein. Gillard subsequently replaced the super profits tax with the significantly more modest minerals resource rent tax (MRRT), which was later repealed by the Abbott government.
Rudd had proposed the resources super profits tax in May 2010, with government forecasts suggesting it would generate $9 billion annually. The tax aimed to ensure all Australians benefited from the country's resources boom during a period of significant mining profitability.
Broader Epstein Connections and Political Fallout
The mining tax revelation comes amid broader disclosures about Mandelson's relationship with Epstein. Documents suggest Mandelson may have leaked sensitive Whitehall information to Epstein in June 2009, forwarding a document about UK government tax plans and asset sales with the comment "Interesting note that's gone to the PM."
Additional emails indicate Mandelson received three payments of $25,000 each from Epstein in 2003 and 2004 while serving as a backbench MP, and that his partner received thousands of pounds in 2009 and 2010 during his tenure as business secretary.
Recent Resignation and Political Response
Mandelson resigned from the Labour party this week as further revelations emerged about his connections with Epstein, who died in prison in 2019 after being convicted of child sex offences. In a letter to the Labour party, Mandelson stated "I have been further linked this weekend to the understandable furore surrounding Jeffrey Epstein and I feel regretful and sorry about this."
UK Prime Minister Sir Keir Starmer has called for Mandelson to lose his title and seat in the House of Lords, launching an inquiry into his conduct during his time as a government minister. Mandelson was previously sacked as UK ambassador to the US last year over his Epstein links.
The documents do not clarify whether Epstein requested Mandelson's assessment of the Australian tax situation or what he did with the information. The Guardian has approached Mandelson for comment regarding the leaking of information to Epstein.
