Rio Tinto chief executive Tom Albanese confirmed overnight why the major miners fought so hard against the planned super profits tax. It was not just about what Australia had planned but that what Mr Albanese calls “resource nationalism” would spread with other countries following the lead and demanding a greater share of the proceeds from what mining companies dig out of the ground.
Governments around the world, he told a mining industry function in London, will seek to boost their share of mining profits, potentially constraining supply.
“They will want to increase their revenue share. They will want to have more control of who develops their natural resources. And this resource nationalism could, by itself, limit the supply response to stronger demand.”