The IMF does not have many miner fans in Australia at the moment. The International Monetary Fund is not gaining popularity by pushing the Australiain government to widen the tax net on miners to include much more than originally planned.
The big question is, if they are going to include precious metal bullion in that net.
BHP Billiton and Rio Tinto will be the two mines to benefit the most from this, as the new tax will heavily effect newcomers to Australians mining industry moreso than those that are already established.
The IMF has not been too happy with Australia’s dependence on China’s increasing appetite for resources. Even though China has ruled out the possiblility of paying more for iron ore, Australia is still upbeat, and overly dependent, according to the IMF, on China’s demand for Australia’s exports.
Keep an eye on this, if precious metals end up included in this new tax, it may effect mining stocks in a major way.