Correction resulted in a decline of the mining compartment 3

Yesterday, this was one of the worst days of stock market since the crisis for the Australian jewels of the world mining industry. Correction resulted in a decline of the mining compartment 3.2 Sidney place. The stars of the extractive activities of BHP Billiton and Rio Tinto have given respectively 3 and 4.3. Their challenger in Fortescue iron ore is folded in their wake of 4.15.

MacArthur Coal, the world leader in pulverized low volatility coal exports used in the blast of the mills that had climbed soared lately following several proposals of redemption, melted 10. It resulted in the abyss competitors in coal, like Centennial Coal (-4.9) or Whitehaven Coal (7). The natural uranium producer Paladin Energy, coveted by the Canadian Uranium One who has acquired nearly 10 million of its shares, bent of 3.8. Even gold companies, yet popular under the bright yellow metal health, have not been spared. Lihir Gold, yet under the influence of an offer to compatriot Newcrest Mining, declined by 3.7.

The reason for General bleeding The current Labour Government proposal to institute effective from 1 July 2012 a federal tax rate of 40 on profit before taxes and charges (EBIT) of mining companies, the RSPT (Resources Super Profit Tax). The project includes the possibility of granting reductions on the royalties to the State level. Also, it is planned to lower the corporate tax from 30 to 29 in 2014 and 28 by 2015. The result of the possible adoption of the RSPT is summarized by the experts at Deutsche Bank: "the new tax will destroy value;" deter investment in new mining projects and particularly in those of larger size; "will encourage Australian companies to invest abroad and will reduce the activity of mergers acquisitions and foreign direct investment in the sector up to the application of the tax." The RSPT would 38 58 the total tax burden on the Australian mining industry, say economists at Citigroup.

Taking advantage of the mining Bonanza

Comparison, the tax burden is 40 in the United States, 38 to Brazil, of 23 in the Canada of 26 to the Chile, from 33 in South Africa, 32 and 30 in China to the Peru. It is therefore hardly surprising that two heavyweights in this sector, BHP Billiton and Xstrata will be openly insurgents last weekend against the painful puncture.

"Stability and competitiveness of the tax system has been central to investment in Australian natural resources," said Marius Kloppers, the pattern of number a BHP Billiton. His counterpart in Xstrata, Mick Davis, referred to the proposal of "punitive treatment". It is true that unusually high margins of mining groups give rise to envy everywhere in the world and not only in Australia

States financially weakened by the credit crisis are tempted to take advantage of the mining boom. The Government of Kevin Rudd Canberra decided to make the RSPT his horse to battle for victory in the elections which will be fixed probably in October of this year. The conservative opposition immediately married the cause of this industry, and the Western States of Australia where the richest mining areas.

Until the battle is committed to the Parliament, the keypad in the mare launched by the Executive already restarted the discussion on the terms of the merger in iron ore between BHP Billiton and Rio Tinto and the generous terms of the transaction proposed by Peabody Energy to Macarthur Coal. Specialists in Credit Switzerland believe the RSPT could provide an excellent opportunity to modify in its favour the agreement which binds it to BHP Billiton Rio Tinto. As Peabody Energy, its spokesman Genevieve Fraser did not exclude that Macarthur Coal supply undergo changes.