BHP and Rio Tinto hit by Australian supertax

[CHIMO]

Shares in mining companies plummeted in London today after the Australian government said it would push ahead with plans to impose a supertax on miners' profits.

The proposals by Kevin Rudd's Labour government are part of a sweeping overhaul of the country's tax system that are designed to boost pensions for workers and protect the public sector.

Rudd is positioning himself ahead of a general election that is expected to be called later this year.

UK multinationals, BHP and Rio Tinto, which have substantial mining interests in Australia, suffered steep falls in their stock prices. In Sydney, Rio's share price has fallen from A$80 (£48) to A$66 since news of the new supertax emerged in January.

http://www.guardian.co.uk/business/2010/may/04/mining-supertax-australia-fears

[mackerel]

1. Good for the Aussie's. They were one of the few countries

not hit by the Wall Street fiasco.