British politician Peter Mandelson kept the late financier and convicted sex offender Jeffrey Epstein informed about the campaign against then-Australian Prime Minister Kevin Rudd’s proposed mining tax, according to documents released by the U.S. Department of Justice (DOJ). The revelations come as Lord Mandelson resigns from the UK Labour Party amid renewed scrutiny over his links with Epstein.
The DOJ’s document dump includes an email from June 2010 in which Lord Mandelson discusses the proposed Resources Super Profit Tax with Epstein. This tax, announced by Rudd in May 2010, aimed to impose a 40% levy on the “super profits” of mining companies. The mining sector quickly mobilized against the tax, leading to its replacement with the less burdensome Minerals Resource Rent Tax (MRRT) under the new Gillard government in July 2010.
Inside the Campaign Against the Mining Tax
The documents reveal that Lord Mandelson forwarded an email from Mick Davis, then CEO of Xstrata, to Epstein. Davis’s email detailed the company’s suspension of over half a billion dollars in planned investments in Queensland, citing the proposed tax’s impact. “The announcement resulted in widespread media coverage,” Davis wrote, highlighting the tax’s potential effects on jobs and mining communities.
Davis criticized an “ill-informed” editorial by the Financial Times and mentioned a direct attack from Rudd, to which he responded with a letter. However, this letter was not included in the DOJ’s document release. Mandelson’s email to Epstein, appearing to target a broader audience, suggested forming a “broadest possible coalition” to oppose the tax, cautioning against turning it into a governance issue.
“You do not want to turn it into an issue of ‘who governs Australia’, the voters and their elected representatives or the mining companies,” Mandelson advised.
Potential Role at Glencore
Further complicating the narrative, the DOJ documents indicate that Ivan Glasenberg, then CEO of Glencore, expressed interest in having Mandelson chair the commodities group following its merger with Xstrata in 2013. In a July 2010 email, Glasenberg mentioned an upcoming meeting about Mandelson joining as chairman, thanking him for a copy of his memoir and a note on his qualifications.
Mandelson, in his correspondence, highlighted his governmental experience and understanding of regulatory trends, seeing these as assets for Glencore. At 56, he expressed a desire to “re-tool” himself for a significant opportunity, emphasizing his political acumen as a key value for the company.
Controversial Connections and Financial Links
Mandelson’s association with Epstein has long been a contentious issue in the UK. His resignation from the Labour Party follows a Financial Times report revealing payments from Epstein totaling 75,000 British pounds ($147,538) between 2003 and 2004. A spokesperson for Mandelson stated he had no recollection of these payments and questioned the authenticity of the documents.
Epstein, who died in a New York jail in July 2019 while awaiting trial on sex trafficking charges, had a complex web of high-profile connections. Mandelson’s interactions with him, particularly in the context of the Australian mining tax debate, raise questions about the extent of Epstein’s influence and interests.
Implications and Future Inquiries
The revelations about Mandelson’s communications with Epstein and his potential role at Glencore underscore the intricate ties between politics, industry, and controversial figures. As the DOJ’s document release continues to unfold, further scrutiny of these relationships is likely.
The implications of these connections extend beyond individual reputations, touching on broader issues of governance, corporate influence, and ethical standards in public office. As investigations continue, the focus will remain on understanding the full scope of Epstein’s network and the impact of such alliances on policy-making and public trust.
Moving forward, the political and business communities will need to address these concerns transparently, ensuring accountability and integrity in their dealings.
