"Partners" is the buzzword now being used by the Aussie Treasury. In three weeks, they've gone from sharing profits only, to "sharing fully in losses". But the majors are asking "does that mean Treasury will fund half the newly required sunk investments? " The answer of course is "No, but the majors have ample access to capital, and we make allowance for that cost". A neat sleight of hand.

Any majors that could foot the bill to access the RoF in the near future are not only quite active in Australia but are also currently in a state of bewilderment wondering just what the Aussie treasury is really talking about. If it is a new model of tax driven sharing to come, they are very worried. You can be my 40% partner any day as long as you bring 40% of the financial capital with you. But there is no 40% upfront investment forthcoming.

Ontario and Canada have an incredible opportunity at hand to make a clear statement on future mining taxation. They have a choice, either co-legislate a longer term policy or have the majors assume that regime change could mean new partners. That will strongly mitigate against long horizon projects with major capital costs. Otherwise the majors will look to investments that can be recovered in shorter periods than 10-15 years.

Hopefully, we will not see this opportunity squandered, but I will not bet on it quite yet.