Countries all over the World Try to Confiscate Miner Profits

Well we have more talk of "super taxes" on the windfall profits of mining companies.

And yet Australia may have started a trend. Government officials in Brazil -- which, with Australia is the world's most important iron ore producing country -- have said as far back as February that they're considering the taxation of commodities shipments or the hiking of royalties payments. (At the time, however, the remarks from Brazil's energy and mining minister, Edison Lobao, were interpreted as the government's way of pressuring Vale to invest more in Brazilian projects.)

Also it seems that China, India, and Chile are thinking of imposing similar taxes. Only the Canadians are going to keep their low taxes in place. What this means though is that suddenly everything that you need aluminum or steel to make are going to rise in price.

Also you will see a mass exodus out of Australia by many mining companies as well as big cuts in mine spending. I mean why would you spend billions to upgrade a copper mine in Australia if the government is simply going to confiscate double the amount of taxes you paid just a few years ago? That means a Joy Global or a Fluor will see far less profits then before. Just the talk of it has hurt the Australian Dollar.

I just don't understand how governments can look at an industry and say "you are making too much money" and just slam down the tax hammer on them. It was the same thing with the "windfall profits" BS that the Congress was peddling in 2008.

It might be tied up with "resources nationalism" where the Aussies want to keep their copper, iron ore, and gold from going overseas to fund the Chinese growth machine. Instead they want to either keep it in the ground where they can control it. It would be interesting to see the consequences of trade protectionism when it comes to natural resources.