bhp tips iron ore slide, page-42

Hi Moorookamick, your analysis is spot on, IMO. When dealing with a buying cartel, the best strategy is a selling cartel. In a sense Australia does this with export products like rock lobsters - the supply is curtailed by licensing limitations.

Another problem that Australia has is that if a foreign importer takes a controlling interest in an Australian mining company, the minority shareholders are disadvantaged by management selling to their home-based owner at a low price, so the minority shareholders are disadvantaged, as is the ATO. There are many things that can be manipulated that contribute to the same disadvantageous effect - to mention two, high-priced borrowings, payments for services supplied by the majority owner.