The Bartman says that BHP Billiton and their Australian mining peers have succeeded in thwarting the Labour initial proposal

The Bartman says that BHP Billiton and their Australian mining peers have succeeded in thwarting the Labour initial proposal, or is this a win for labour in the looming elections? A Homer run? All I can say for sure is that certainty makes for a better outcome. Time for our department to step up to the plate, our Venezuela moment is what it is being called. Things with V, Vuvuzela's for BP, we could really show Tony Hayward. Non-farm payrolls, this is a big day for the traders. And Chinese minimum wage gets a leg up, good idea I in the long run.



The "new" Aussie government have come to their senses, at least this is what we feel on this side of the net. All it needed was a change of coach. The revised taxation proposal has been greeted by the majors as a fairer deal, from their IR BHP Billiton Encouraged by Australian Resources Tax Changes. Rio Tinto have agreed and have thrown in the others for good measure in their press release: Proposed Mineral Resource Rent Tax. Xstrata with the same, Proposed Mineral Resource Rent Tax (MRRT), all the wording is pretty similar for the releases.



A mainstream news approach sums it up: Australia mining-tax deal to affect few firms. So it is the super projects that are going to yield the most for the Aussie government. And talking those Aussies, I was able to find the Transcript of joint press conference on the Prime Ministers website.



There was a rather telling question in the transcript, from a fellow called Tim: "Prime Minister, you've effectively broken a 2007 election commitment by dumping the resource exploration rebate, which replaced the flow-through share schemes that Labor offered in opposition. Now, isn't this a classic case of the Government cowering to the big miners, the big noisy miners, at the expense of the small end of town?"


The answer that was fired back after the question was passed from the PM (Julia Gillard) to the Australian Resources Minister: em>"Well firstly, on the resource exploration incentives that we announced a couple of months ago - the industry decided they didn't want it. We ditched it because the industry wanted it ditched, so let's be a little bit factual about why it's not on the table today.


In terms of where we go from here, it will be part of the consideration of any other possible system through the implementation committee chaired by Don Argus and myself."



I think from a political point of view that Gillard and the political changes in the background that led to the demise of Kevin Rudd have been a stroke of genius on her part. She ends off by saying that relations between the miners and the government have improved dramatically, and you can see that in the miners press releases. A lesson in PR here, get around a table and don't be stubborn about your proposals. That might work in Venezuela (at least for now) but not in a full blown socialist democracy.



It is all about communication, something that as humans we are hard wired for, we crave knowing more, that is why mobile phones are perhaps a revolution in communication. Something that our Department of Mineral Resources could do a whole lot better. My apologies for yesterday. The Department of Minerals Resources website does exists. What a website. It looks straight out of 1996: Department of Minerals and Energy.



I hate to say it, but guys, if I was looking at a project in Australia and South Africa of the same size and scale, I know who is more on top of their game, the Department of Resources down under. I hate myself now that I just said that, but you let me know if I am way off. Anyhows, an industry insider told me to stop whinging and sent me a copy of Stakeholders' declaration on strategy for the sustainable growth and meaningful transformation of South Africa's mining industry. We need to change the ownership structure and it does need to be meaningful. But the department also needs to improve their communication skills. And some would argue governance, the whole Sishen Iron Ore rights could well be our Venezuelan moment, I think Peter Major called it that. A lot has been written about this issue.