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