What’s in store for Australian mining with the fall of the House of Rudd?
A precarious peace pact has been struck between the Australian mining lobbies and the Federal Government following the sudden departure of Kevin Rudd as Australian Labor Party Leader and thus the Prime Ministership. The argument over proposed higher tax rates on mining companies – including London-listed BHP Billiton and Rio Tinto – was one of the reasons for Rudd’s resignation.
See http://www.mineweb.co.za/mineweb/view/mineweb/en/page72068?oid=106788&sn=Detail&pid=102055.
Australian mining companies were first to suggest tax review
Mining companies now unhappy with Australia’s proposed 40 percent royalty tax were the first to suggest a review of payments to the state, chief economist at Australia’s trade commission Tim Harcourt said. Global miner Rio Tinto has said it would be forced to reconsider investing in Australia if the government insisted on a tax on so-called super profits, while Prime Minister Kevin Rudd has denied talk of a quick deal with miners over the tax row.
See http://www.mineweb.com/mineweb/view/mineweb/en/page504?oid=106304&sn=Detail.
S&P raises Rio Tinto outlook from stable to positive
Credit rating agency Standard and Poors’ positive outlook for Rio Tinto could be harmed by Australia’s proposed 40% resources super profit tax (but no mention in this article of the harm done by Rio Tinto…..).
See http://www.mineweb.com/mineweb/view/mineweb/en/page67?oid=106500&sn=Detail&pid=92730.