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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: sm1th who wrote (16076)	6/26/2013 10:45:49 PM
From: Jacob Snyder	Respond to of 34328

re VALE: Resource nationalism is an issue for every miner in every country. In places with the rule-of-law, that means higher taxes. In lawless places, it means sabotage, theft, and extortion. As the article says, Brazil will raise taxes from 2% to 4%. VALE's competitors in Australia are paying up to 12% in taxes. My guess is, VALE, BHP and RIO will raise production through 2014, global demand will be flat-to-down, so prices go down. The Big 3 gain market share, at the expense of everyone else. If the Brazil government taxes VALE too much, the winner will be Australia. As prices for iron, copper, gold, silver go down, miners can tell governments: "We have to reduce production, closing mines. If you raise our taxes in your country, we'll shut your mine, and you lose all the taxes and all the jobs."