miners

Australian mining giant BHP Billiton (BHP) is planning to build a $US5 billion worth of iron ore hub in West Africa after facing uncertainty in its local expansion plans due to the resource super profit tax (RSPT) proposed by the Australian Government. BHP is planning to boost its operations in West Africa through Guinea and Liberia due to some political improvement in the region and increased buoyant demand for steel which saw record prices for iron ores.

Tom Albanese, the chief executive of Rio Tinto (RIO) has stated that the Australian Government will turn into a risky “silent partner” of the Australia based miners through its proposed resource super-profits tax (RSPT) which has created a huge debate throughout the mining industry and believed to have negative impact over the mining sector of the country. Rio Tinto is currently doing as much as it can to prevent the RSPT which it believes will enhance the sovereign risk of Australia.

The chief executive of Rio Tinto (RIO) Tom Albanese said that it is important for the UK based investors to raise their voice against the proposed controversial resource super profit tax (RSPT) on the mining sector of Australia which has created a major debate recently. The latest data shows that the tax is going to have negative impacts not only on FTSE but on the retail sector as well.

Marius Kloppers, the chief executive of Australia based mining giant BHP Billiton (BHP) stated that he is looking forward for the iron price to remain closer to a record high due to the rising Chinese demand for steel. Although the concerns regarding the economic melt down in Greece did slashed the prices of exchange-traded metals during the earlier month by as much as 10 to 20 percent, the implied price for the iron ore from Australia is still at a record high.

The proposed super-profit tax over the miners have seen the value of mining companies taking major hit on Tuesday as the sector lost another $7 billion worth of value.