On 9 May 2016 the China Ministry of Finance announced it was extending its resource tax reforms to cover several metals including iron ore copper zinc lead and gold. There are two key parts to the reform: firstly the resource tax will shift from being based on volume to being based on price. Secondly the mineral resources compensation fee will be reduced to zero and all other resource related fees collected by local governments will be abolished.We expect the new measures will help cut costs for mines but only slightly. A resource tax based on price rather volume will benefit miners when metal prices are low. The cancelling of all other resource related grey costs will help build a more transparent and healthier tax environment.