MARKET TALK: Cost Of Insuring Miners Debt Dn On Aussie Tax News

2nd Jul 2010 11:01

1001 GMT [Dow Jones] The cost of insuring debt issued by mining companies fell early Friday after news the Australian government has made major concessions on its mining Resource Super Profits Tax, now to be called the Minerals Resource Rent Tax. At 0930 GMT, the cost of insuring $10 million of debt issued by BHP Billiton (BHP.AU), was at $87,000, around $5,000 less than at Thursday's close, according to data provider Markit. The cost of insuring a similar amount of Rio Tinto (RIO.AU) debt was down $6,000 at $131,000, while the cost of insuring Xstrata (XTA.LN) debt was also down $6,000 at $218,000. Under new Australian Prime Minister, Julia Gillard, the proposed headline rate of the mining tax will fall to 30% and the scope of exemptions has increased considerably. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 02, 2010 06:01 ET (10:01 GMT)