phillips river project - henry reforms, page-8

GZ - I guess you know by now I will always try and look for the positives (does not mean I don't also see the riskier side also).

As you would be, I am fundamentally opposed also to anything that would stifle the mining industry which is so very important for the Australian economy in the new Global Order.

I think the key issue in all this is that there is as yet NO DETAILS of how the SuperTax will be applied. Naturally it all seems threatening at the moment (with no clear definitions) but the rules will have to be negotiated with State Governments and the Industry. So at the moment all the relevant parties are naturally taking positions from which negotiations can start. Clearly a Government strategy is always to create thoughts of worst case scenarios initially so that eventually they can reach a compromise that was their aim in the first place (win win psychology).

There are obviously some good things about the Henry Reforms that the mining companies would probably not object to as long as the "quid pro quo" is not an obscene across the board 40% SuperTax. There have to be thresholds, rebates, grants, reduction in bureaucratic processes etc etc.

Future prosperity depends so much on long term planning and allocation of profits from the "good times" to fund new discoveries and projects. And not to be underestimated, it also depends on guys like you and I who are prepared to support capital raisings for mining projects that deserve a chance. So many smaller projects would never get off the ground if inverstors are not prepared to risk some of their own capital in a safe political environment.

I realy don't think ultimately Governments are going to risk "Killing the Goose"! Surely Rudd and Swann do have some common sense and advisors that are not blinded by socialistic pragmatism.