Political risk in the Australian mining sector

• Autores: Industrial Minerals
• Localización: Industrial Minerals, ISSN 0019-8544, Nº. 550, 2013
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Resumen

  • An example of this is Australia - once considered a'safe haven' for mining investors, but now home to a government with a strong'resource nationalism' streak.

    It is intended that Australia's cap-and-trade programme will link up with the European Union (EU) ETS, whereby Australian emitters could use EU allowances to meet up to 50% of their domestic obligations. The government has envisaged that the linkage will boost the credibility of its carbon pricing mechanism, but Australia's Labour-led administration has been lambasted by the opposition for pegging Australia's economic future to a struggling Eurozone, rather than the higher-growth region of Asia.

    Australia epitomises the threat posed by sub-sovereign risk to foreign investors and in Queensland the mining sector has fallen victim to the government's efforts to restore the state's AAA credit rating. The government of Queensland announced a royalty hike from 10% to 12.5% for coal sold at A$100-150/tonne in September 2012. A royalty rate of 15% will apply to coal sold above A$150/tonne.