As a country wer are very stupid to let these miners trash our Iron Ore resources
without some form of regulation. Our chief customer is China who has successfully
orchestrated supply/demand so that the ass has been knocked out of Price and that
a Communist regime is getting our precious resources at a pittance above what it
costs to dig them from the ground. We need regulation here and forget the notion
of a self regulated so called free market. This "free market" almost sunk the western
economies and we are now feeling the afterburn.
Re: FMG:
1015:
Market Cap: $6.41 billion
Revenue:..... $11.827
EBITDA:.......$3.287 billion
Profit:............$435 million
Return on assets: 1.43% (this is less than inflation with some assets depreciating at 20% P/A)
If this company thinks that it is doing OK then it is either delusional or its realising profit elsewhere
(ie like BHP & Rio, transfer pricing via Singapore)
The 'Free Marketeers" in Canberra are costing the Australia tens of $Billions in forgone tax and forgone
trade balance by sticking with a ridiculous "free market" policy while we are going down the tube.
Even the USA ditches "Free Market" policy in 2008-2009 when its banks and Auto industry got into
strife because of markets' failures. We as taxpayers had even to guarantee our Bank deposits to ward off a run on our banks!. How Free market policy is that?
So in summary we dont have a consistent Free Market" policy because in the past and via ASIC & The ACCC on an ongoing basis we regulate markets and their participants.
So the glaring question now is why do we not regulate Iron Ore and Coal production volumes to meet market conditions?
Perhaps it has something to do with big miners supporting the election of the Abbott Government last election and bugger
the taxpayer?
All we have to do is reduce our production of Iron Ore & Coal by 10% and call on other producers to follow. Given
Vale's loss making in the past year, no doubt Brazil would be a willing participant.
