Earlier this evening I read the story below from today's Australian, thought about the last 12 months of b*llshlt regarding Carbon and MRRT taxes, looked at the GBG shareprice now compared to where it was in December/January, thought about what GBG's done to get this far and thought about how long I've 'invested' in it...I came to the conclusion there's nothing fundamentally wrong with GBG. Its definitely made some mistakes along the way but its external forces which have impacted it and its shareprice the most.
Not the least of those external forces is the present federal government...will they ever wake up! (rhetorical question since I think I already know the answer)
The taxes they're opportunistically preparing are doing no favours for companies like GBG and in turn doing no favours for the Dad & Mum investors all around the country many of whom like myself have invested their superannuation in a sound company only to see it be trashed by DUMB IDEAS.
Bring on the election soon and hopefully this time next year GBG will be in much better state and many, many people will be in a better state of mind!
"Give us a chance, say magnetite miners"
MAGNETITE iron ore companies planning projects worth about $20 billion say the Gillard government is ignoring the fledgling sector's demands for "realistic" levels of compensation under the looming carbon tax scheme.
Twelve magnetite companies in Western Australia, South Australia, Tasmania and NSW claim the government's failure to support the magnetite industry could cost thousands of regional jobs and discourage downstream processing in Australia.
Magnetite Network chairman Bill Mackenzie said the emerging industry would save global carbon emissions when compared to the use of traditional hematite ore, and deserved more federal assistance.
Mr Mackenzie said although lower-grade magnetite required energy-guzzling processing before it could be exported, the early emissions in Australia would be more than offset by carbon savings in the overall steel-making process when compared to hematite.
"Unfortunately, by virtue of energy-intensive onshore processing, Australian magnetite producers would be unfairly penalised by a domestic carbon price," he said.
"Once a global carbon trading mechanism is in place, magnetite's global carbon benefits and competitive advantage will be recognised."
Last night, a spokeswoman for Climate Change Minister Greg Combet said the government was continuing to consult with the magnetite industry over its treatment under the carbon tax and the sector would be eligible for assistance.
"The government believes this assistance, once finalised, will be sufficient to ensure a strong magnetite industry in Australia," she said.
A report published by Deloitte Access Economics last year estimated that development of the magnetite industry could add $4.5bn to national GDP per year and create more than 4000 jobs. The firm said in its report that magnetite projects in the pipeline were worth $19.5bn, including the $5.2bn Chinese-owned Sino Iron mine in WA.
Mr Mackenzie said: "All we ask is that the government allows the emerging magnetite industry to grow and create more Australian jobs until a mechanism recognising its global carbon savings is in place."
GBG Price at posting:
66.0¢ Sentiment: Hold Disclosure: Held
