MARKET TALK: Australian Mining Tax Amendments Major Positive

2nd Jul 2010 12:32

1132 GMT [Dow Jones] The changes to the proposed Australian mining tax are a major positive for Australia-based miners, says Dolmen Securities. "The amendments appear to have struck a balance between the miners and the reformed government, with pragmatic concessions made on both sides." Notes the new proposal has reduced the headline rate of tax to 30% from 40% and says this is a major concession. Also notes the new tax would only affect coal and iron projects, rather than all minerals. Other major changes include the use of market value vs book value approach to calculate gains, Dolmen says. Mining stocks are on the front foot, with Rio Tinto +2.3% at 2970p and BHP Billiton +2.1% at 1730p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 02, 2010 07:32 ET (11:32 GMT)