Gillard Reaches Deal With Miners on Australian Tax - [buy the product, not the producer]

[jk]

Australian Prime Minister Julia Gillard reached an agreement with mining companies on a new resources tax, ending a dispute that cost her predecessor Kevin Rudd his job and paving the way for an election this year.


The mineral resources tax will be 30 percent, applying to iron ore and coal, while the levy on oil and gas projects will be 40 percent, the government said.


etc
http://www.bloomberg.com/news/2010-0...urces-tax.html


jk comment- taxes on resources limit the value of the producer while raising the value of the product.

[marvenger]

Re: Gillard Reaches Deal With Miners on Australian Tax - [buy the product, not the producer]

Tis true. For Australian producers the balance of how effectively the mining industry can pass on price increases without affecting demand will be largely determined by China. I think they'll be pretty successful.