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May 18 (Financial Post) The mining industry is still reeling from an announcement in early May that the Australian government plans a massive tax hike on resource profits. If it goes into effect, Australia would have one of the world’s highest mining tax brackets. ... “The scale of Australia’s proposed change will encourage a range of countries to revisit their mining tax take, in our view,” they [UBS Securities] wrote.
The analysts completed a country survey, and identified a handful of them that could impose higher mining taxes: Brazil, Mongolia, Chile, Zambia and the Democratic Republic of the Congo. Canadian companies are active in all of these places.
On the other hand, they also pointed out some countries that see opportunities to steal market share away from Australia, and are thus unlikely to increase mining taxes. That group includes Canada, Russia and Kazakhstan. ... Despite the new Australian tax, they still rate Aussie giant BHP Billiton Ltd. as a top pick in the mining sector, because of its high-quality resource base and its ability to take advantage of increased M&A potential.
Factbox - Most and least friendly areas for world's miners
May 18 (Reuters) - Following are recent results from an annual poll by the Fraser Institute, an independent public policy research organisation based in Canada, which measured jurisdictions worldwide on the most and least friendly policies for miners. ... * Areas seen as having friendliest policy towards miners.
Clear directions on mining needed, feels Ministry official
May 18 (news.mn) A senior official at the Ministry of Mineral Resources and Energy, B.Batkhuu, has said Parliament needs to give a clear direction on the extent and nature of State participation in mining, and on the status, quality, and exact nature of private-public partnership. The 2006 Minerals Law has laid down the general concept, but “now we need to establish specifics so that foreign and local investors know exactly where they stand and what to expect”, he said, according to The Mongolian Mining Journal. ... He regretted that the “irresponsible behavior” of a few companies taints the popular perception of the entire mining sector. People are also unhappy when proceeds from taxes are not utilized for the benefit of local development. The minerals sector has been making wide and rapid expansion in the last few years and deserves a research institution to serve its needs.
MONGOL BANK SIGNS MEMORANDUM WITH COMMERCIAL BANKS
May 18 Ulaanbaatar, Mongolia, /MONTSAME/ The Mongol Bank has signed a memorandum of understanding with the Khan Bank and the Trade and Development Bank with aims to start the piloting the integrated payment card clearing system in May 15, 2010 and to officially put in operation in June 16, 2010.
May 18 Ulaanbaatar, Mongolia, /MONTSAME/ President Ts.Elbegdorj received Tuesday Mr Andrew Ellis, a Director of the International Institute of Democracy and Election Assistance for Asia and Pacific Affairs.