Australia’s mining giants BHP-Billiton and Rio Tinto along with Brazil’s Vale are not the only oligopolists in the international iron ore business. The governments of Australia and Brazil are equally as capable of playing the game of maximising profits as the companies so the intention of our Labor Government to raise its share of the available dollars is sure to be noted in Brasilia.
Some things about politicians are universal and seizing an opportunity for extra tax revenue is one of them. Hence the idle nature of the threats by the mining industry in Australia to take future developments somewhere else if the resources tax is finally imposed. It will not be long before the international mining taxation playing field is level again.
Luiz Inacio Lula da Silva is probably counting the extra reais at this very moment while he gives thanks to Kevin Rudd for showing the way.