Letter published in todays AFR...Confiscatory toll a resource...

Letter published in todays AFR...

Confiscatory toll a resource risk

Summaries - Australian Financial Review, 11/05/10, Letters, Page 60 By: Rich Krasnoff

The proposed so called super profits tax by Kevin Rudd will set modern finance theory back 25 years. As West Australian premier Colin Barnett points out who would invest in mining projects for a 6 percent return. It would not surprise me if BHP Billiton or Rio Tinto's average cost of capital were double the 6 percent threshold, maybe that is why Rio will expand its iron ore operations in Canada, which does have the advantages of its Pilbara operations. Rich Krasnoff, chairman of Conquest Mining.