Hello jgunter99,Perhaps Twiggy is not qualified to strongly...

Hello jgunter99,

Perhaps Twiggy is not qualified to strongly object to this
RSPT because FMG has paid very little if any company tax
yet due to accrued concessions given to FMG for exploration costs, development costs and loan interest etc. Conversely, if the Rudd RSPT were in place now in lieu of WA State Royalties, it would immediately benefit FMG!

For example last year FMG lost 10 cents per share
on 3.1 billion shares (do the math yourself)(source Google Finance)

FMG made $44 million NPAT on $1.188 bln revenue for the year half ending 31 Dec 09; that's 3.7% profit and well below the proposed 6% treshold where the RSPT clicks in. (source FMG Half Year Report 31st Dec 09)

Perhaps Twiggy has something up his sleeve which he is not telling the market that leads him to believe that FMG
would have to pay the super tax in the foreseeable future? We have only heard him say that it would be difficult to borrow more money from anyone other the Chinese to finance further ventures.

Rather than flooding the iron ore market with more
iron ore on borrowed money, he should take a tip from OPEC and limit production to gain a premium price now! If OPEC were to pump all the oil they can now the contents of the barrel would be worth less than the barrel itself!

Mining has been traditionally a boom & bust business and
there is little point in overproducing now causing a more than neccessary bust later. We know that the Chinese would love overproduction and the resultant depressed iron ore prices but overproduction is not in the long term interest of Australia because our ore is a limited and non-renewable resource.

I can understand BHP who is free from debt , highly profitable and a major taxpayer already vehemently
opposing this tax the because of corporate self interest.

It will be interesting to see what the verdict of the electorate will be come election time.