Mining Pushing up Stocks, Decreasing Revenues

Two reports out of Australia: investors are happy and the government isn't.

With mining stocks rising, the ASX is up to 5,200 and the All Ordinaries Index was up 1%. Strong trade with China has facilitated the rise, and shows evidence of a truly strengthening economy - though some analysts are skeptical. Economist believe in the numbers though, saying that the Australian economy is on the rise.

On the other hand, others are upset because of the resource tax credit. In Australia, new tax laws have been written to affect mining companies - and the revenues that were expected from this tax were far lower than expected. The Australian Treasury forecast $2 billion in revenue, and has thus far collected less than $130 million, due to tax credits given to the companies.

In all, these news article both show the power of the mining industry in Australia. As mentioned in the trade post, Australia is a huge exporter of iron ore, and is a leading mining county overall. The industry is so large that it massively affects the market and also has the lobbying power to influence the government into writing new tax laws that don't even majorly affect the companies.