Rudd's super tax drives Xstrata away

The Australian - MINING giant Xstrata says it will stop immediately development spending of $586 million on its $6 billion Wandoan thermal coal project and its $600 million Ernest Henry underground copper project in Queensland.

"The decisions represent the initial findings from Xstrata's ongoing review of planned investment into its Australian operations and growth prospects as a result of the Australian Government's proposed Resource Super Profits Tax," the Swiss-based company said in a statement.

The decision came after the Rudd government said yesterday it was prepared to offer "generous" transition arrangements for miners affected by the proposed tax but won't back down on the key 40 per cent tax level.

And the rudd government told us with a straight face that the mining industry would grow due to their wonderful new tax.

Expect more companies to re-evaluate their investments in Australia and rudd to back away from this as the pressure and reality keeps biting his ass. He might refuse to back away from the tax now, but I doubt very much that kevin rudd has the balls to hold firm.

The man is a gutless wonder and once he realizes that he's going to be turfed out of office, he'll do anything, say anything and knife anyone to hold on to power. Sorry wayne swan, you'll go the way of peter garret and penny wong chump, kevin09 is looking for lambs.

Not to mention Australia, it'll be us who won't get the jobs that Xstrata just shelved and it'll be us paying for spruiking this new tax for this weasel of a prime minister.


  1. The updated version of this story in The Australian has yet another example of incorrect use of waiver/waver.

    "But Prime Minister Kevin Rudd did not waiver on his commitment to introduce the tax"

    What is the world coming to?

    Krunt gleefully destroys Australia's wealth to flatter his wax-eating ego. Go back three years and I'm pretty sure here on this blog we warned wealth destruction was what this mob of socialists was all about. And ain't it coming true?

  2. Definitely ar, we saw this waste of space from a mile away, but anyway here we are living under his rule.

    Hopefully not for long.

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  4. The leftards know that high taxes will drive businesses away and result in reduced tax revenue (no company = no tax revenue), but they do it anyway. The reason is that they are not interested in increasing revenue, they want power. When the companies leave this results in layoffs. Some of those laid off will become dependant upon the government because they won't find other jobs because the other companies are leaving or cutting back. But once the person becomes dependant on the government, they'll keep voting for the same people who created the problem in the first place to maintain their welfare benefits. For the left this is a win win situation. If the company stays they can claim they are making the evil rich company pay its fair share, if it leaves and hurts the economy, it only means that more people will become dependant on the government. I hope Rudd back down, but don't be surprised if he doesn't.


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