Australia May Ax Mining Tax After Labor Fails to Win Majority

Australia’s proposed mining tax may be scrapped after the incumbent Labor Party failed to win a clear majority in yesterday’s federal election.

“If the Liberals were to form a government, there’s no mining tax,” Peter Chilton, a fund manager at Constellation Capital Management Ltd. who holds both shares in BHP Billiton Ltd. and Rio Tinto Group, said by phone from Sydney. “That’s potentially positive for the mining sector. If Labor forms an arrangement with the Greens, there’s more uncertainty.”