over here in WA its clear this tax can't happenit seems that...

over here in WA its clear this tax can't happen

it seems that when Federation was being negotiated as a result of some argybargy and horse trading WA had a section put in the Constitution to protect itself from this sort of thing

http://www.theaustralian.com.au/news/nation/legal-challenge-for-resource-tax/story-e6frg6nf-1225869370753

Yesterday WA Premier Mr Barnett opened a speech at a business gabfest with

"man the barricades , we are under attack'

thus ensuring his reelection here and vastly boosting his political capital

Now Mr Barnett can go and negotiate higher state royalties from BHP and RIO. Remember Kev is really only after the iron ore profits, the rest is petty cash

So strategically it makes sense for BHP and RIO to agree to higher royalties with Barnett , thus boosting WA state coffers , keeping the cash in the State to be used for hospitals ( no need for Kev health plan) and creating a huge headache for Kev because he said he wouldnt give credit to BHP for the increase. Barnett had already raised this royalty increase proposal prior to Kev's idea being public

Kev has well and truly been outfoxed, he his on hiding to nowhere now. Even if he gets it through the Senate he has to negotiate the High Court on the Constitional challenges

what a total political nightmare he has created for himself

Now in sleepy Victoria, remember currently there are no royalties on gold, and there wont be for a while I'd say

So if things go to plan in a couple of months we'll be minting bars at $250 an ounce cash cost ( assuming 20gpt headgrades), royalty free and become the lowest cost gold producer in Australia making money hand over fist