'Miners will battle resource grabs'

[Judi Lynn]

Source: Reuters

SA Time: Saturday, May 05, 2012 6:59:55 PM
'Miners will battle resource grabs'
May 5 2012 at 04:13pm
By Reuters

Mining companies will fight growing resource nationalism and could pull out of countries where governments are demanding too large a share of the pie, commodities giant Glencore warned on Friday, a day after Argentina nationalised the country's biggest oil firm.

“The mining industry is forming tight groups among each other on how we are going to fight it...,” Glencore Chief Executive Ivan Glasenberg said.

Glasenberg, speaking at a conference in the Swiss town of St Gallen, warned there would be consequences to producer countries seeking an ever larger share of mining profits, a trend which has risen alongside commodity prices as the main mining constituencies raise taxes and royalties.

Glasenberg, whose company is in the throes of a tie-up with miner Xstrata, warned Glencore would not hesitate to withdraw investments in places like Africa if governments change the terms of existing contracts in their favour.





Read more: http://www.iol.co.za/business/international/miners-will-battle-resource-grabs-1.1289844

[SemperEadem]

1. Battle how? By importing mercenary armies?

to massacre the citizenry?

[DJ13]

2. ".. and could pull out of countries.."

Uh, its not like the miners can take the resources still in the ground with them, so isnt that the same thing as allowing the country to nationalize?

[xxqqqzme]

3. It is NOT the miners

but the Mining COMPANIES. Miners are exploited by the Mining COMPANIES.

Consequences to PRODUCER countries huh? And exactly what might those consequences be, I wonder?

Glencore, a commodities giant - yet another pocket to fill before those 'producing countries' or the miners get paid for their labor.

[lsewpershad]

4. Corps

will try to squeeze [control] market forces to affect prices and thus affect the miners and their respective countries. We have to hope that the need for the resources will out weigh the pressure of the corporate barons.

[Monk06]

5. The most I have seen a mining company pay a host country is a 3% royalty. They won't even put a

drill in the ground if the country insists on corporate income tax or any other tax for that matter. Plus they typically try to get infrastructure improvements paid for you the host government. They make billions and the host country gets pennies on the dollar and big fat hole in the ground. Also responsible companies that pay for reclamation are rare.

[bemildred]

6. "Extractive industries will oppose resource re-nationalization".

Like, Duh?

[Octafish]

7. Like Poppy's outfit, Barrick Gold?

Greg Palast explains.

Most importantly: Thank you for the heads-up, Judi Lynn. The OP goes to the root of the problem.