Africa could see increased capital flows-analyst

The company reports that the envisaged flight of capital from Australia since the government announced its intention to impose a 40% super profits tax, the world's heaviest tax on resource companies, as well as the collapse of resource stocks on the Australian bourse and the increase in the cost of equity capital for mining in that country, has set the scene for an outflow of mining investment.

Similarly, in Canada, mining companies are looking elsewhere to markets that may have previously been considered as carrying greater political risk, but where the start-up capital for projects would be sustainable for prolonged growth.