What miner do you work for, Chainsaw1?
The average Australian only gains from taxes paid by these miners
so for them the higher the taxes the better.
Have a gander at the big 3 break even costs:
Rio Tinto has the lowest break-even cost at $US42, BHP's is $US51 and Vale is at $US60, according to USB estimates.
(Source : Bloomberg)
Take the present 62FE price of US$53/ton
Vale is already copping a loss of US$7/ton.
If we include the GST in the $53 USD , that's $48.18 for BHP & Rio.
So while Vale is copping a loss of $7/ton at the current IO price,
Rio would be making $6.18 a ton and BHP would be loosing $2.82
even with the GST applied.
BHP & Rio together have the major influence on seabourne IO pricing
as evidenced by the impact of their over production on price over the
past year.
So where do you get your info from that if we impose GST on our iron ore
miners that we will loose the business to Vale (Brazil)
Vale is being cruelled by the current low prices and should IO
prices remain under Vale break even point for another year,
then Vale's IO operations would have to have a doubtful future.
Even AGO has a lower break even price thann Vale.
Adding the GST to BHP & RIO's IO exports would, IMO, force up the price
by compelling BHP to mothball its higher cost operations while the
price is as is.
