NEWSFLASH! In September I will join The Conversation as its Business and Economy Editor. I have been honoured to work at The Age for the past ten years, originally alongside the legendry Tim Colebatch, and for the past four years as economics editor in my own right.

At The Conversation, my job will be to make the best thinking from Australia's 40 univerisites accessible to the widest possible audience. That means you. From the new year I will also write a weekly column.

On this site are most of the important things I have written for Fairfax and the ABC over the past few decades. I recommend the Search function. The site is a record for you, as well as me.

I'll continue to post great things from The Conversation and other places here, and also on Twitter and Facebook. Enjoy.

Tuesday, June 15, 2010

How profitable? Possum on why we can't stop mining.

His incredible piece is here. Read and wonder.

Some highlights:

"In 2008/09, the Australian mining industry had a EBITDA/Revenue ratio of 43% while the worlds largest forty mining companies had a comparable estimate of 30%...

"Our profits and our resources are simply too good an opportunity to pass up – even if the profit margins involved in Australia are seriously reduced. When the noisy miners say that their capital is mobile, they are dead right – their capital is indeed mobile, but in exactly the same way that every other mining firm’s capital is mobile, including the capital of the worlds largest forty miners...

"Big Dirt walking away from Australian investment will be their loss, not ours – because someone else will simply take their place.

Big Dirt – welcome to capitalism."

Related Posts

. "Resource companies will leave Australia only when there are no more minerals and energy to extract"

. Wednesday column: No way back, no way out - the miners don't want a deal

. At last - some good communication from the government about the RSPT