Henry Report

A lot of hot balloons right now, including from the propaganda arm of the big miners. Can't we wait until it clears up a little?
 
Thanks Sunfish

Looks like you may have dodged a bullett.

My concerns are for small business whose end users are mining companies, no expansions, loss of jobs.

Cheers, MTR
 
The press about mining projects being scrapped is crap - think about how easy it is to SAY projects are being scrapped. Its just words. Lets wait and see which ones actually go under to see if their are any real effects.

Its like me saying ive scrapped buying in Toorak because I havent got a payrise!

PROPAGANDA
 
Bernie Fraser thinks its ok
Henry is no slug
And the market wouldn't be responding to the well waged opposition/mining campaign?
Or the Euro/Greece crisis?

Take a breath - people are getting killed in Greece and we think the sky is falling in with a resource tax on multinationals? And remember multinationals are just that. Foreign and locally owned. So forget alliegances, they have.

Will they pull out in real terms? I heard the same song (I work in the mines) during the GFC. Mining did not loose turnover. It was flat. And the following year, well the first 6 months it went up 13%!!!!! But they had sacked a lot of staff. So they will blow hot air, get a reduction down from 40%, and the world will go on.

Get a grip. Discussion should focus around the recommendations for IPs. A drop of claimable amounts to 40% from memory. We should be talking strategies for cash flow for when this will occur, not some media hysterical driven campaign.
 
And remember multinationals are just that. Foreign and locally owned. So forget alliegances, they have.
You have just destroyed your own argument. The multis indeed have no allegiance to Oz and it would be far cheaper to pay the little bit extra freight on iron from SA than pay the super tax here.

I believe the multis will organise a strike of capital. Why wouldn't they? Australia doesn't have a monopoly on stuff in the ground. We once had a near monopoly on "stable government".
 

All mining projects that are already financed and nearly ready to go will probably still go ahead, albeit at lower profit margin then was originally predicted as contract to sell has already been signed so companies need to honour them. It's the new ones on which work hasn't commenced will be shelved. You won't realize the impact of this until atleast 3-4 years when the mining revenue drops significantly, and the Government will wonder what's going on :confused:

Cheers,
Oracle.
 
The Mining companies are saying the new tax will send investment offshore to some of the cheaper third world countries, preventing new projects going ahead in Australia.

Does this mean that the current regime is much more enticing for these companies than the cheaper third world countries?
 
Guys

I am in the business

If China are screaming for commodities Australia even with the taxes presents a far cheaper alternative to 95 percent of other countries.

Why?

- We already have the infrastructure (ports. logisitics etc)
- Its already available and China cant hang on for these other (other countries) projects to come on board
- We have a secure legal system - Africa and parts of south america dont...

Its the Chinese who will foot this bill (eventually).

Why do you think the chinese have to accept 50 percent price rises year on year - answer (no alternative). Again I reiterate - this tax is just another yearly price hike!

If they (Chinese) cant afford it then thats a whole new scenario...
 
Well of course RIO hasn't 'scrapped' their iron ore expansion. They take years of investigation and feasibility into whether to undertake projects, they're not going to reverse all that in once split decision two days after a proposed new tax is first mentioned by a PM who may or may not a) win the next election and b) get the tax enacted even if he does. :rolleyes:

This discussion is on what mining companies will do in the future if it does go ahead and what ramifications that will have if it does.
 
You have just destroyed your own argument. The multis indeed have no allegiance to Oz and it would be far cheaper to pay the little bit extra freight on iron from SA than pay the super tax here.

I believe the multis will organise a strike of capital. Why wouldn't they? Australia doesn't have a monopoly on stuff in the ground. We once had a near monopoly on "stable government".

Iron ore from where? Australia controls most of it with Brazil. There is no real alternative the amount needed.
 
Well of course RIO hasn't 'scrapped' their iron ore expansion. They take years of investigation and feasibility into whether to undertake projects, they're not going to reverse all that in once split decision two days after a proposed new tax is first mentioned by a PM who may or may not a) win the next election and b) get the tax enacted even if he does. :rolleyes:

This discussion is on what mining companies will do in the future if it does go ahead and what ramifications that will have if it does.

Steve - let me ask you this. Rio and BHP operate in an environment where prices have been rising and falling evey year by between 20-50 percent.

They plan projects in this crazy cvolaitile environment. This tax is just another variable and one in many respects that is less than the voltile flcutuations in price.

Its scaremonegring.

The very marginal mines will not go ahead. But guess what - If china keeps screaming the prices will rise by another 15 percent to make them feasible once again. Thats how it works!
 
The Arabs didnt get rich giving away their oil
How about telling an Arab country we will come there extract all your oil for free and give you 5 cents a barrel

Thats exactly what the multinationals do here ,in the Pillbarra its on the surface, and laid back dumbass aussies cheer from the headland as the ships full of our minerals go past.

So long, thanks so much for the 5 cents ,dont trip over your bonus payments .
Bye
 
Steve - let me ask you this. Rio and BHP operate in an environment where prices have been rising and falling evey year by between 20-50 percent.

They plan projects in this crazy cvolaitile environment. This tax is just another variable and one in many respects that is less than the voltile flcutuations in price.

Its scaremonegring.

The very marginal mines will not go ahead. But guess what - If china keeps screaming the prices will rise by another 15 percent to make them feasible once again. Thats how it works!

You keep focusing on the price. Remember, they receive the same price whether RIO dig it up from the Pilbara or from Guinea. Now if the end product they sell (for the same price) at whatever the going rate is makes them $X profit in Aust. with the new tax when they could instead make $X+20% in Guinea - where do you think their development dollars will go? It's really not that difficult to understand surely? Now the small miners have no choice and will persist with their tenements in Aust., but the big boys have many options.
 
Aussie, the infrastructure you speak of is already working to full capacity. The 50 bil that RIO says they won't spend in WA was to be on infrastructure which they can build elsewhere. A JV with Vale in Brazil? South Africa where there is a workforce (ex gold mines) already? A new rail line from India? How cheap is that?

Our trumps until now have been the workforce and stability of government. Well Rudd has just renegued on his part of our good hand.
 
Hi all,

It all sounds so easy for the miners, they just pack up their bags and move elsewhere. What, we are only going to make $6b instead of $10b pa!! Let's go where we can easily get the resources elsewhere. :rolleyes:

If the resources were so easy to mine and transport and were just lying around all over the place, the prices would not be as high as they currently are. The 50% price rises from one year to the next could not happen if it was that easy.

In terms of resources that are economic to produce, we are possibly coming close to 'peak everything', in which case allowing it to be taken away without maximum benefit locally is probably a mistake.

However, what a dumb way for the government to go about it, this mob really are stuffing up big time. Or is it just inexperience??

bye
 
You keep focusing on the price. Remember, they receive the same price whether RIO dig it up from the Pilbara or from Guinea. Now if the end product they sell (for the same price) at whatever the going rate is makes them $X profit in Aust. with the new tax when they could instead make $X+20% in Guinea - where do you think their development dollars will go? It's really not that difficult to understand surely? Now the small miners have no choice and will persist with their tenements in Aust., but the big boys have many options.

Stevie - thanks for tip. With due respect this IS my day job. The importnt price is the landed price in China. Therefore shipping is a factor. Shipping from West OZ compared to Arfica can differ by 20 up to 50 bucks per ton...

(10-30 percent of the landed price)

The other factor in price is quality - Australia has some of the best quality whch can make a 10 percent (if not bigger difference)

Price is important with regards to the bottom line of companies no so much about the competititon.
 
Back
Top