Thursday, May 6, 2010

Alcoa (NYSE:AA), BHP (ASX:BHP), Rio Tinto (LSE:RIO) Looking to Expand Outside Australia

The outrageous 40 percent super tax proposed by Australian officials has major mining companies like Alcoa (NYSE:AA), BHP (ASX:BHP) and Rio Tinto (LSE:RIO) looking elsewhere to expand.

Rio Tinto, commenting on their recent expansion in Canada, said the initiative shows "the attractiveness of investing in Canada," a subtle note to Australian politicians that they don't consider the country the best place to expand.

Rio is expanding in the Quebec-Labrador region via its subsidiary Iron Ore Co. of Canada, where it'll increase its yearly capacity to 22 million tons by 2012, a 4 million ton a year rise.

Iron Ore Co. of Canada is now the largest producer of iron ore in the country.

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