Have you thought two steps ahead?
No doubt everyone with shares in uber-miners like BHP and RTP is mourning the serious threat of a new 40% tax on profits from resource mining companies in Australia ... but have you thought two steps ahead?
The miners have just gained a massive bargaining chip that thyey will bring to the table with them to the next round of price negotiations on items like iron ore and met coal. Whatever political heat they were feeling for demanding excessive prices after the April 1 prices were set (amid the abandonment of the traditional annual benchmark pricing system altogether), has juet been wiped clean. Expect met coal and iron ore prices to rise even faster than they were already poised to do if this proposal sustains political will in Australia.
Also, if you're non-Australian miner with easy trade access to the same markets in China and india, say, for example, TCK ... then this could be your lucky day. They'd enjoy all the benefits of a pricing increase without the corresponding tax.
Of course, in the long run Australia will not be the last nation to seek to tap the enormous wealth that will be created by miners through the remainder of this secular bull market in commodities, but for the time being it's certainly advantage to the non-Aussie exporters.