Companies

Feb 28, 2018

The mining industry is swimming in money — and it’s all going back to investors

We're told that all that stands between the world's largest businesses and a massive, job-creating investment splurge is a large pile of post-tax profit. Oh... hang on...

Bernard Keane and Glenn Dyer

Politics editor / Crikey business and media commentator

The other day we noted that Rio Tinto, which was threatening to switch investment to the United States because Australia hadn't cut its company tax rates to match Donald Trump's, was awash with cash and busily handing it back to shareholders rather than investing it anywhere.

As the AFR's Myriam Robin noted, good luck to Rio switching to the US when all that red dirt in the Pilbara is what drives most of Rio's profits.

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2 comments

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2 thoughts on “The mining industry is swimming in money — and it’s all going back to investors

  1. Ricardo Legato

    Higher tax rates drive up the value of deductibles, and we should therefore be offering incentives (deductions) via the ATO that would drive jobs growth, not dividend growth. The same way, if we had any sense, that we would encourage home ownership to be a right not an asset.

  2. AR

    Kel Surprise. There you go with that facty troothy stuff again – reality is what Capital sez it is.

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