A FRESH bout of ''resource nationalism'' could be imminent, amid speculation that Brazil is poised to follow Australia's lead by imposing a major tax on its mining industry.
Less than two weeks after the Australian government released details of its revised mining tax, a report from Brazil suggests a tax of up to 25 per cent is being considered for that nation's mining industry.
Published in Brazil's biggest-selling newspaper, the report was unconfirmed last night, but it followed more than a year of consultation between the government and miners over reform of the sector.
Projects owned by Brazilian iron ore giant Vale are among those that would be affected by a ''special participation tax'', according to the Folha de Sao Paulo newspaper.
By comparison, Australia's tax would impose an effective tax of 22.5 per cent on iron ore and coal miners that make annual profits above $50 million.
As the world's biggest iron ore producer, Brazil is an important mining country and any move to increase taxation could affect the numerous Australian-listed companies that have ventured there, including BHP Billiton and Rio Tinto.
While their share prices showed no ill effects from the speculation yesterday, both companies have exposure to aluminium in Brazil, and BHP Billiton is a joint venture partner with Vale in the massive Samarco iron ore pellet project. Numerous Australian junior miners - including Centaurus Metals and Crusader Resources - are developing projects in Brazil, but the report suggested the tax might be focused on large-scale projects. Governments in Australia, Chile, China, Canada, Namibia and Bolivia have recently altered taxation, exploration or takeover laws to improve the public share of mining wealth - vindicating warnings by Rio Tinto boss Tom Albanese last year that a wave of ''resource nationalism'' was about to sweep around the globe. UBS commodities analyst Tom Price said many resource-rich nations had been watching and waiting for the right moment to introduce their own tax changes.
