Political revolt down under gave a boost to mining stocks – and the FTSE 100 – this morning.
New Australian prime minister Julia Gillard, who replaced Kevin Rudd, is seen as more willing to negotiate with mining companies over the controversial tax on so-called "super profits" made by the resources companies.
One of Gillard's first actions on taking power has been to halt the government's advertising campaign promoting the tax, prompting BHP Billiton to suspend its counter ad campaign, which had highlighted the impact on jobs and investment in the industry.
"I have said to the mining companies of this nation publicly that the government is opening its door and we are asking them to open their minds," Gillard told the Australian parliament.
That was enough to send shares in BHP Billiton, the world's largest mining group, up 1.5% to £19.75 in early London trading, and there were gains for Rio Tinto, up just over 1% to £34.34; Vedanta, 1.4% ahead at £24.27, and Xstrata, 1.3% higher at £10.31.
The FTSE 100 index was up 25 points at 5202.44.
