Financial analysts have been proclaiming the end of the so called commodity super cycle for some months now and mining companies are starting to feel the pinch of lower commodity demand and prices. The demand and price weakness is being felt in markets for most mineral commodities – iron, copper, coal, and precious metals – and it is starting to squeeze miners.
According to an article on Mining.com, mining companies in Mexico are threatening to
move their investment capital to other jurisdictions if Mexico advances with a plan
to impose a 7.5% tax on resource companies
Over at Mining.com, Cecelia Jamasmie discusses the ramifications of the 2014 federal budget to the mining sector.
Serbia is on the cusp of a mining revival according to an article featured recently in the National Post. Although gold and copper has been mined in some parts since Roman times, the mining sector has been stagnant since the early 1990s when wars tore Yugoslavia apart.
In 2012 the Gillard government introduced mineral resource rent tax or MRRT in Australia which was applied to iron, coal and coal gas. Other minerals were exempted.
Lawrence Solomon has a great piece in the Financial Post, pointing out that U.S. exports of Liquefied Natural Gas (LNG) would not break Russia’s hold on the natural gas market in Europe.
A commentary in the Globe by Brian Lee Crowley highlights the importance of the institutional framework, and not simply the presence of natural resources, as a key ingredient for wealth.
With Quebec’s election now behind us, the Liberals must now turn their
attention to governing.
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