if i were the md of rio., page-25

Could someone analyse these figures?

Eritrean mining tax: 38%
Eritrean royalty: ~3.5%
50/50 profit share (post tax)

So, on say $1b profit, STB pay $380m tax, $3.5m royalty, plus $500m profit share to the Eritrean government.

Eritrean govt get $991.5m (or 99.15%)
STB get $8.5m (or 8.5%)

In the "about STB" in all their ANN', SYB says:

"An Engineering Scoping Study for the production of 1Mt p.a. of potash demonstrated an estimated capital cost of US$0.74bn generating a Pre-tax NPV12 of US$1.33bn."

This makes me think that STB knows their tax obligations- which are in Eritrea's mining law. In some reading, some have said tax obligations ought only apply to the country where the company is domiciled. However, Nevsun- domiciled in Canada- just paid over $30m tax (plus $8m royalty- all on a 60/40 profit share- 30% + 10% free-carried).

An interesting article I found about the Eritrean govt getting Zara from Chalice for free:

http://natna.wordpress.com/eritrea-gold-for-free/

I have been watching STB's share price get smashed, and thought it would be smashed by 50%- the level of the new profit-share. It may be more than 50% to Eritrea, though, if my numbers are right. Are they wrong, holders?