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“In the absence of draft legislation or implementation details, it is difficult to provide reliable information to shareholders on how the proposed tax would impact the company’s operations or corporate activities,” he said in a letter to shareholders.

“However, based on the limited information currently available, initial modelling suggests that long-term shareholder returns from our mining operations will reduce by more than 10 per cent due to the increased tax burden.”

While there are obvious concerns with Treasury modelling of the MRRT, especially after the tax take was underestimated with the previous resources super-profits tax proposal, Millner is not pleased with the current revenue target.

“The government has clearly stated that it expects to raise $10.5 billion in revenues from this new tax – revenue that can only be raised with a proportionate reduction in the earnings of projects affected by the tax.

“While the direct impact will be borne by mining companies and their shareholders, the indirect effect of this new tax will no doubt touch employees and their families, suppliers to the mining industry, mining communities and the wider Australian population, all of whom depend on the sustained profitability of mining projects.

“I ask that you consider the potential impact of the current government’s proposed

Minerals Resource Rent Tax when casting your vote in the forthcoming federal election.”

New Hope is one of the few remaining Australia-owned coal producers and operates the Acland and New Oakleigh thermal coal mines.

The company also cuts costs and improves profit by exporting coal through its Queensland Bulk Handling business at Brisbane’s port.

Australia-listed Washington H Soul Pattinson and Company owns 59.99% of New Hope.

New Hope shares are up 1c to $4.80 this morning.