Insight

Mexico's mining tax: Only marginal impact on competitiveness

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The Mexican mining industry will face a new tax regime on January 1 2014. All mining companies will pay a net income tax of 7.5%, plus a 0.5% production royalty on any gold and silver. Mexico is a top-tier base and precious metal producer, and it is important to quantify the impact of this new fiscal policy on the cost competitiveness of gold, zinc and copper supply in the country.

Table of contents

  • Executive summary
    • Context: Why the new tax?
    • Consequences: What will be the impact on Mexico's mining industry?
    • Even after taxes, Mexico's operations remain competitive
    • Copper project development in the hands of one big player
    • Rise in effective tax: marginal impact on Mexico's competiveness
    • Dearth of gold projects
    • Mexico's zinc operations will stay competitive
    • Zinc: Ownership structure and project development
  • Conclusion

Tables and charts

This report includes 8 images and tables including:

  • Mexico: copper, zinc and gold operating mines and projects
  • Mexico metal production and competitiveness
  • Copper cash costs and effective tax rate, by country
  • Mexican copper production capability (including projects), by type of company
  • Gold cash costs and effective tax rate, by country
  • Mexican gold production capability (including projects), by type of company
  • Zinc cash costs and effective tax rate, by country
  • Mexican zinc production capability (including projects), by type of company

What's included

This report contains:

  • Document

    Mexico's mining tax: Only marginal impact on competitiveness

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