Mining Stocks Slammed By Massive New Australian Mining Tax (BHP, RTP)
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Mining giants BHP Billiton (NYSE: BHP) and Rio Tinto (NYSE: RTP) are under heavy pressure today after Australia said it would impose a 40 percent tax on mining profits staring in 2012.
Prime Minister Kevin Rudd said with A$80 billion in mining profits over the past decade the government has been short-changed by only bringing in A$9 billion.
Rudd said the companies, which are largely foreign owned, have seen profits soar on the back of Australian resources.
Shares of BHP Billiton are down 2.5 percent today, while Rio Tinto is down 5 percent. Brazil-based miner Vale (Nasdaq: VALE) is down 1.7 percent.
In addition to the Australia news, China said it would raise bank reserve requirements again in its fight to curb inflation.
In addition to the weakness in the major foreign miner, the news has U.S. resource stocks trading lower.
Cliffs Natural Resources Inc. (NYSE: CLF) is down 5 percent, Peabody Energy Corp. (NYSE: BTU) is down 4.5 percent, Freeport-McMoRan (NYSE: FCX) is down 4 percent, CONSOL Energy (NYSE: CNX) is down 3.5 percent, and U.S. Steel (NYSE: X) is down 3 percent.
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Prime Minister Kevin Rudd said with A$80 billion in mining profits over the past decade the government has been short-changed by only bringing in A$9 billion.
Rudd said the companies, which are largely foreign owned, have seen profits soar on the back of Australian resources.
Shares of BHP Billiton are down 2.5 percent today, while Rio Tinto is down 5 percent. Brazil-based miner Vale (Nasdaq: VALE) is down 1.7 percent.
In addition to the Australia news, China said it would raise bank reserve requirements again in its fight to curb inflation.
In addition to the weakness in the major foreign miner, the news has U.S. resource stocks trading lower.
Cliffs Natural Resources Inc. (NYSE: CLF) is down 5 percent, Peabody Energy Corp. (NYSE: BTU) is down 4.5 percent, Freeport-McMoRan (NYSE: FCX) is down 4 percent, CONSOL Energy (NYSE: CNX) is down 3.5 percent, and U.S. Steel (NYSE: X) is down 3 percent.
Market Moving News and Intelligence - Free Trial
http://www.streetinsider.com/premium_content.php
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