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MTR, where is this information from and what projects are under scrutiny?
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
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.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".
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.
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!
I think something more sinister.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.