China to cut taxes for iron ore miners

Beijing: China is considering cutting taxes for domestic iron ore miners to help domestic mining firms compete with overseas rivals.

The Ministry of Industry and Information Technology announced yesterday it will work with the Ministry of Finance and other parties on a proposal to cut the current total tax rate of around 25% by 10% to 15%.

China’s iron ore import volume has been growing rapidly this year as domestic iron ore miners have been sufferedfrom high production costs and have failed to compete with Australian miners including Rio Tinto and BHP Billiton.

For the first ten month of this year, China has imported 607m tons of iron ore, up 8.9% year-on-year, according to data from Chinese customs.[21/11/12]

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