mining profits - the facts, page-8

cerhob

You still do not get it.

A company grows from the profits of its operations. If we do not own our assets we will never actually grow or have the ability to save for investment because the profits get transferred overseas.

These companies have gotten hold of our natural assets on the cheap and are simply transferring Australia's wealth overseas. Example was Xstrata's takeover of MIM (which was back then almost the same size as Xstrata). Xstrata used borrowings to pay for MIM and the interest bill was simply an offset against its Oz profits. In fact Xstrata was reported as doing some really creative accounting transferring overseas losses onto the OZ books to lower its Oz tax (I think there were over $600m involved from what I recall reading).

I suggest you get informed and not simply repeat the propaganda put out by the companies.

loki