Australia: Doormat for foreign miners, page-8

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LesPaul

4,751 Posts.

30/03/15

18:38

Post #: 15006693
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Originally posted by raiderup ↑

" Just another example of disingenuous, emotional bulltish from the Silly Moaning Herald."

Have a look on page 39 of the West Australian dated the 28th of this month.

Paul murray rights =Iron Ore glut undermines our interests.

And in part he rights,

" Every $1 fall in the Iron Ore price means WA gets $49 million less a year in royalty's,according to last years state budget which factored them in at $122.70 a tonne.
"Based on the Iron Ore price sensitivity for 2014-15,a movement of this magnitude would ,if sustained for a full year ,reduce annual royalty revenue by an estimated $1.9 billion."
Of course what we have seen is worse than that.
So why were bhp and rio allowed to ramp up their exports so quickly when the basic laws of economics predict the price would plummet?

Former Pilbara MLA Larry Graham pointed out in an online comment piece in October that the agreement acts under which the two multinationals operate in WA put them under certain obligations to" ...ship from the company's wharf all iron ore mined from the mineral lease and sold and use its best endeavors to obtain therefore the best price possible having regard to market conditions from time to time prevailing..."

Graham argued that instead of bleating about behaviour of the miners last year, Premier colin barnett should have enforced his rights under the acts and demanded evidence they were getting the best price for our Iron Ore .
"If the companies cannot produce such evidence ,or evidence exists to the contrary, firm action needs to be taken by the minister;and in my view this should include compensating the state for any revenue lost as a consequence," Graham wrote."

I'll take some photos of the article from the wife's Ipad,and post them,when Ive got the time.

Raider

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You have to consider the volume increase when making the assertion of $49M loss per dollar price.

BHP is doing all its share holders a favor. It is getting rid of the competition and will still turn a profit. More so when the market is back.
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