Perhaps it might be worthwhile reflecting on what happened with...

Perhaps it might be worthwhile reflecting on what happened with the initial resources super tax Bullbar.

I would think there would be a very similar reaction with major resource companies simply pulling their capital out of project development and going elsewhere.

These majors have very strong lines of greenfields projects that are waiting for development and as these companies have proven time and again its nothing to spend hundreds of millions to billions in pushing such project development.

South Africa would simply be sending themselves back to the mid 19th century economically by making such a move as it is so dependant on its mining industry.

We saw politically what happened to Rudd off the back of being too gungho.South Africa's near/medium and long term future relies very much on its resources industry and there are very few organisations that have the financial and technical knowhow in developing such assets.

We have seen what can happen to South African infrastructure recently when the GFC hit the power and rail infrastructure hard.Its only just beginning to get back on its feet now and no doubt this is another area you would see capital withdrawn if South Africa became more serious about nationalising the mining industry.

Thats not to say some whacko might not get into power and do the same as Zimbabwe.But its hard to see such a scenario playing out given the way the ANC has recently reacted to Malemas outspoken tirades on nationalisation.

Cant say there's really any sign the likes of BHP/RIO/Xstrata are too worried about such a thing happening atm either.They would be pulling out all stops politically(as they did with the super tax)to emphasise what a disaster such a move would be for the country.

d.