mining tax impact, page-9

I do agree with Josh01 on this one. If the Senate do pass this bill they are with out a doubt going to stifle investment in the mining sector. Every major mining company, oil and gas company and even the Canadian Government have come out saying this is obscene and will result in less investment in Australian projects.

In my opinion KRUDD has shot himself in the foot here and will not be successful at the next election in August! I really do hope that those stupid enough to vote him in will not make the same mistake twice!

KRUDD has just come back from his meeting in WA with the mining sector and has stated that the resource tax is open to negotiations.

Mining services will be with out a doubt hit the hardest as you will see the marginal plays that are going ahead put on hold until the change in Government - FMG for example. I would not expect companies to put projects on hold / cancelled until such time as the bill is passed. In the mean time the company is still on track for 20% EPS growth this year, hence justifying price targets north of $2.

Taken directly from Xstrata's reply to the Government's new tax -

"Mineral investments require long-term certainty over fiscal arrangements. The governments intention to change the basis on which existing mining investments were entered into sends a particularly worrying signal and undermines Australias reputation as a stable investment destination, hampering the ability of mining companies and other investors to assess the basis for, or to commit to, future long-term investment."

http://www.xstrata.com/media/news/2010/05/03/0001CET/

I really do hope that the government does back down from this proposal as the ramifications are wide spread and will cost this nation and shareholders of NWH dearly.

I personally bought back into NWH today at $1.46 and am happy to take the risk.