rspt - aribitrage to mining services sector, page-4

Mines are different to oil wells. If the RSPT goes ahead, the miners will just demerge the mines and charge the mines high prices for the workforce, consultants, equipment hire, benefaction, pellet smelting, transport costs, wholesaler, exporter, retailer, etc etc etc etc . . . . The board of directors on the mines will be huge too and everyone highly paid (10m+). As for external service providers they get swallowed or will give kickbacks. Thus the mines earn low profit (<6%) and all the services provided will earn high profits. RSPT gets nothing! Yet every company gets 2% less tax and all the dud projects (with exaggerated exploration costs) will make a huge windfall for the explorer business thanks to the taxpayers. (Government will have to increase GST and income tax to avoid going broke.)

Henry & Rudd gang of 4 -> how stupid can you get!