escaping the super tax

Escaping the super tax.

Robin Bromby From: The Australian May 26, 2010 11:16AM

AUSTRALIA'S resources policy will be a big driver for companies to look abroad for projects. With the British economy going downwards by the day, you can forget Robert Brownings " Oh, to be in England now that Spring is here ".

Instead we're reciting the Pure Speculation version which starts " Oh, to be drilling abroad now that the resources super tax is nigh ".

Yesterday the morning theme on the ASX seemed to be gold. This morning we are seeing a slew of announcements from Australian companies toiling away abroad, far from the grasping hands of the Australian Treasury.

The last trade may have been at only 3c, but Malagasy Minerals looks like it might at last be getting some traction. MGY is already exploring in Madagascar for nickel, copper, platinum group metals and vanadium, and the company announced this morning it was merging with an unlisted West Australian company, Madagascar Resources which owns the Toliara mineral sands project on the island. This has a JORC-compliant resource of 710 million tonnes grading 6.3 per cent heavy minerals.

The deposit is dominated by ilmenite but also contains the much higher value zircon. Madagascar Resources, which is headed by well-known Perth geologist Peter Woods, has already been approached by Chinese companies interested in the resource. Dr Woods has been involved with Madagascar for 16 years.

China is pushing into the island, having just completed a large new embassy in the capital, Antananarivo. On Monday, Wuhan Iron & Steel announced it was proceeding with plans to explore for iron ore on Madagascar. Japan's Nippon Steel and South Korea's Posco are already active in Madagascar.

http://www.theaustralian.com.au/business/mining-energy/escaping-the-super-tax/story-e6frg9ex-1225871480967