Insight

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

This report is currently unavailable

Contact us

Submit your details to receive further information about this report.

For details on how your data is used and stored, see our Privacy Notice.
 

- Available as part of a subscription
- FAQ's about online orders

18 May 2015

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.

Table of contents

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

Tables and charts

This report includes 2 images and tables including:

  • Royalty rates by provinces to achieve no cost change
  • Company type cost impact of price-based resource tax

What's included

This report contains:

  • Document

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

    PDF 259.02 KB

Other reports you may be interested in

Browse reports by Industry Sector