Rio Tinto today announced a 122% increase in its profit to $14,300,000,000. Which is more than many country’s total GDP.
It revealed its bottom line almost tripled last year with record underlying earnings of over US $13.9 Billion based on soaring prices.
That same year “Last Year” it was proposed that a “Super Profit Mining Tax” be introduced by the Rudd Government on profits that were considered excessive. The mining industry immediately went into massive hysterics claiming it would send them broke, projects would be cancelled, many thousand of contractors would be thrown to the scrap heap and they would mine elsewhere. A major scare campaign was unleashed against the government complete with the mega wealthy protesting in the public domain, like a PAYG worker, as though they would not be able to afford their bread or milk should the tax proceed. The coalition jumped on the band wagon claiming it would kill off the industry.
To make the situation alarming and distressing to the community, the major mining companies immediately announced a hold on projects and people were sucked into the claims that mining would go broke. Most did not understand the tax only extended to profits over and above a certain level. Not standard profits but determined super profits. The ALP became scared and started their ultimate demise of Kevin Rudd and now we have the Gillard Government. Amazingly with the change of leader and a backdown of the tax all of the projects immediately recommenced. A real demonstration of the power of these monolithic beasts.
I am sorry but I consider a 122% increase in profit to $14.3 Billion Dollars nothing short of obscene and a major con of the Australian people.
So, who will share in this astronomical profit? Shareholders only. The country of which they mine a non renewable resource has been well and truly taken for a ride by Mining Conglomerates and their mega wealthy owners.
Obviously the mining industry knew full well that their profits were going to be Super Obscene and as a result spending a few hundred million to stop tax being imposed on many billions was good management on their behalf.
After release of these results, I would like the coalition and the mining industry, to please put forward their argument, once again, as to why we should not have a Super Profits Mining Tax.
It is a Super Profit. It is Super Obscene and worst of all it is a monumental Super Con of the Australian people.
ADDITIONAL UPDATE : Newcrest Mining Announces a 148% increase in profit.