The Reserve Bank has been trying to slow the economy by raising...

The Reserve Bank has been trying to slow the economy by raising interest rates bit by bit. Well, Rudd has done in one swing of a SLEDGEHAMMER! I am impressed.
The last sentence below will affect RCP.

Quote from Business Spectator Robert Gottliebsen
http://www.businessspectator.com.au/bs.nsf/Article/BHP-RIO-TINO-capital-strike-resource-rent-tax-pd20100506-56SMK?OpenDocument&src=sph


Less than a decade ago resource projects were struggling. They will struggle again some time in the future. The Rudd plan assumes a ridiculous 6 per cent return and then lumps a 40 per cent extra tax on earnings above that, which takes the tax rate to the vicinity of 58 per cent and in some cases it can be higher. If a miner is well into the construction of a new project they will have to keep going, but if they have not started, the rewards now do not match the risk. Even if a resource company was prepared to take a punt it is unlikely that a banker would back it.


PS. you may have to join Business Spectator to read the full Commentary.