I wonder how South Australia would feel if BHP decided that they wouldnt proceed with the Olympic Dam expansion Those geothermal projects that the Federal Government put in over A$100m to support will generate power for naught. Those very large LNG projects from CBM projects in Queensland that require billions of dollars of upfront investment. Even future magnetite projects in Western Australia that require enormous amounts of capex - hence have large payback times. If BHP and RIO will be paying an effective 56 to 57% tax rate as opposed to a mid 40s tax rate now (once you add in the royalties calculated on the gross revenue) then make no mistake, mining development will stop dead.
I note that Zambia have come out and said that they will not impose a super-tax... Even third world countries understand better that Australian politians
GIR Price at posting:
$1.98 Sentiment: LT Buy Disclosure: Held
