The Impact of the Bauxite Levy on Company Profits
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Chapter 4 demonstrated how the calls for a NIEO resulted in demands for recognition of rights of ownership among the bauxite producers. This objective was usually obtained by either full or partial nationalisation of the mining process. The present chapter traces the bauxite producers’ success on a second NIEO front — the demand for a greater return on the bauxite itself. The chapter concludes with an analysis of the impact of the bauxite producers’ price offensive on the MNCs using a quasi-experimental design to track the changes in their profits. Evidence suggests that by 1977–8 the aluminium multinationals might have found co-operation with the bauxite cartel ‘not unprofitable’.
KeywordsCompany Profit Copper Price Earning Ratio Relative Profit Earning Stability
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