Australia labelled one of the worst for sovereign risk

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Australia is one of the worst countries in the world for sovereign risk, according to AngloGold Ashanti CEO Mark Cutifani.

Speaking on the sidelines of the Commonwealth Heads of Government Meeting in Perth Cutifani said his company had marked Australia as a location with “considerable” sovereign risk.

“To be frank, when I talk to the board, we have Australia as one of the top sovereign risk countries in the world and places where government policy has demonstrated failure in terms of taxation policy and its inconsistency in policy,” he said.

‘That is a real concern for me and our board.”

According to Mining Weekly, Cutifani said the carbon tax “defies logic” and the mining tax was cause for concern.

Cutifani said he was worried the Government may change its mind on the mining tax and include minerals other than coal and iron ore.

But responding to questions at CHOGM yesterday federal resources minister Martin Ferguson said the mining industry had not reacted negatively to the tax.

He said despite the mining tax there had been massive investments in Australia’s resource industry.

“This debate will continue to occur, but if this is a disincentive then all I can say is that industry is not responding in that way,” he said.

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