The killer is in the tail.Accelerated depreciation on...

The killer is in the tail.

Accelerated depreciation on established long life operations has minimal benefit, they will have little to ward against the additional 40%.

The same on new projects helps short mine lfe players on new projects , eg gold, but kills off new CSG, iron, coal and anything more than a seven year minelife.

On the gold front, operators spend like crazy on the 'next project'and rarely give a return to shareholders,(there are exceptions such as RMS!)

Base metal projects have a very mixed profit history. Net net net, the additional tax will not help.

If the Government was honest, very big ????, then an excise tax on iron/coal above agreed benchmark levels could be acceptable and somewhat transferable to the overseas buyers. It may raise the dollars KRudd needs for his budget and would be 'simple'-unlike this fresh round of bureaucratic mumbo jumbo.

After seeing our incumbent PM on question time yesterday, rational economics is not his forte and he will do his ''..nana'shortly.

Our world competitive industry has been reduced to a global laughing stock in four 'simple'weeks. My personal superfund thinks you are a .....

Please note the jump in Canadian GDP in the meantime Canberra technonerds!

Cheers, TAS