Miners grapple with rising tax demandsReutersPublished: Sunday,...

Miners grapple with rising tax demands
Reuters
Published: Sunday, May 20, 2007
NEW YORK (Reuters) - Bolivia's move to impose a 50 percent tax on all profit coming from the country's vast mineral wealth is the most damaging blow yet to miners looking to extract hefty returns around the world.

With high metals prices driving up mining sector earnings and some companies posting their biggest profits in nearly a decade, some governments are eyeing these windfalls jealously.

"Fifty percent would definitely be one of the highest tax rates of any of the countries in the region," said Haytham Hodaly, analyst at Salman Partners, who expects a significant amount of debate in the Bolivian parliament before it actually gets passed.

Full article at http://www.canada.com/nationalpost/financialpost/story.html?id=15bc950b-0798-4c4a-9456-e21ab45f8239&k=22742

Comment:

There is plenty of time for things to happen.

This "merger" is far from signed, sealed and delivered. It is not expected to be finalised until some time in the September quarter.

It does NOT prevent a higher offer being made, if only for BSG, because whoever controls BSG controls the project.