Australian Miners Hit With Exorbitant 'Resource Super Profits' Tax

New Australian Prime Minister Julia Gillard on Friday announced a compromise deal with major mining companies over a 40 percent super tax on resource profits that helped topple her predecessor.The tax headline rate was slashed to 30 percent for coal and iron ore profits from 40 percent, while the threshhold at which the tax will kick in will be raised to 12 percent from the proposed five percent level, she said."I can now announce that we have reached agreement on the basic structure for minerals taxation for the future," Gillard told reporters in Canberra.

Russia introduced new alcohol laws. The Senate made a deal on the fiscal cliff. Hewlett- Packard may dispose from some of its businesses. Royal Dutch Shell’s drilling ship Kulluk grounded near a small island in the Gulf of Alaska.

The Gold Report submits:

Michael Johnston submits:One of the many beneficiaries of the tremendous growth in China’s economy has been the resource-rich nation of Australia. The Aussies are one of China’s largest trading partners, and have thrived on the emerging market’s insatiable demand for raw materials over the last year. Australia was the first advanced economy to raise interest rates following the recent crisis, and has continued to distance itself from its economically-challenged developed market counterparts.

On Friday, the US trade deficit shrunk by far more than expected, in large part thanks to declining oil imports. From CSMonitor.com:

Australian Prime Minister Kevin Rudd said Thursday he would not be deterred from introducing a controversial 40 percent tax on mining profits, accusing resources giants of "scare tactics".Rudd's proposed levy on the so-called "super profits" of miners from July 2012 has sparked a massive backlash from the resources sector -- Australia's most valuable industry -- with warnings of closures and project halts.

Australian mining stocks plunged Monday after the government announced a 40-percent windfall tax on profits, which the industry warned would endanger projects worth billions.The government said Sunday it planned to impose the tax on "super profits", as mining giants such as BHP Billiton and Rio Tinto reap the benefits of an Asia-driven commodities boom.The Anglo-Australian BHP slumped 2.6 percent on the news to 39.72 dollars (36.76 US) and Rio Tinto fell 3.6 percent to 69.51 dollars.