Mining giant Rio Tinto will use every means at their disposal to try and get the proposed tax on mining profits shelved. They are on the newswires;

  • the mining tax is to blame for the fall in the A$
  • doubts if the government would bear a share of losses during a recession
  • difficult to invest in new projects with this tax looming
  • the mining tax is it’s top Sovereign risk issue globally

The AUD/USD and AUD/JPY continue to slide and the sell-off is picking up momentum after these comments.