fmg announcement, page-16

Naturally if any player could manipulate the profitability of a part of an enterprise by fiddling with,say, the amount paid for IO by another part then why not.

Therefore if China's tax on it's enterprises is less burdensome it will happen.

Why, subject to ASSIC rules, couldn't a large Chinese steel mill buy an IO company or controlling part here. They would achieve the following:

-a reliable ore supply
-a very reasonable ore price
-access to other expansion and exploration possibilities
-joint ventures with like minded Aussie (Chinese) companies
-Chinese government finance for big infrastructure projects
-and they could screw the government at will (Professor Rudd and his little comical side kick, Goose)

Personally I like that last bit.

It is impossible that the government could have conceived all the outcomes and scenarios of this tax grab. They have shown they don't have the brains.

I'm sure the lights are burning late in the boardrooms of China. They couldn't get on the board of RIO last year but maybe now there are newer, fresher possibilities for them.

Thanks to our dynamic economic duo