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China's royalty reform is designed to have no impact on iron ore costs


China's royalty reform is designed to have no impact on iron ore costs

Report summary

China is proposing to replace its tonnage-based resource taxes and all related grey costs with a price-based royalty for iron ore mines. The government will aim to set the new royalty rates without affecting costs for the industry. We estimate price-based royalties will need to be between 5 and 7% on average to achieve this goal. A date for implementing this new royalty regime is not decided and could be up to several years away.

What's included?

This report includes 1 file(s)

  • China's royalty reform designed to have no impact on iron ore costs PDF - 259.02 KB 3 Pages, 1 Tables, 1 Figures

Description

This Metals Insight report highlights the key issues surrounding this topic, and draws out the implications for those involved.

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  • Executive summary
  • China to reform iron ore resource tax
  • Royalty rate likely to be less than 7% on average
  • Royalty change benefits SOE mines

In this report there are 2 tables or charts, including:

  • Executive summary
  • China to reform iron ore resource tax
  • Royalty rate likely to be less than 7% on average
    • Royalty rates by provinces to achieve no cost change
  • Royalty change benefits SOE mines
    • Company type cost impact of price-based resource tax
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