The hottest iron ore resource tax is about to be r

Iron ore resource tax is about to be reduced, mining enterprises, etc. to get out of trouble

the iron ore resource tax is about to be reduced, and the mining enterprises are waiting to get out of trouble

China Construction machinery information

from May 1, the iron ore resource tax will be reduced by 40% of the specified tax. Why is the iron ore resource tax reduced? What impact will the reduction bring to mining enterprises? Where will China's iron ore market, where prices and market prices are at a low ebb

many mining enterprises shut down due to losses

the reduction of iron ore resource tax is aimed at the current depressed survival state of domestic mining enterprises. Since the fourth quarter of last year, many mining enterprises have accelerated their shutdown due to unbearable losses. Among them, price is the biggest reason

over the past ten years, China's economy has developed at a high speed, and its steel production has climbed to new highs, which has greatly stimulated the demand for iron ore and pushed up the price of iron ore in the international market, reaching nearly $200/ton at the highest. After the "golden decade", there is a serious overcapacity in steel and iron ore demand has fallen; 3. On the other hand, under huge financial pressure, the new production line spawned by sudden profits in previous years had to maintain its operation, and the supply of iron ore continued to increase

the reversal of supply and demand, coupled with pessimistic expectations, global iron ore prices continued to fall after 2014. Last year, China's annual average import price of iron ore was $100.6/ton, a decrease of 21.9% over 2013. By March this year, the average import price had fallen to 67.03 US dollars/ton, falling for 15 consecutive months. On April 10, it fell to the lowest point, at $46.84/ton

internationally, prices have been falling all the way; In contrast, domestic costs remain high. Although China's iron ore reserves rank fourth in the world, the average iron grade of the ore is only 31.3%, and the lean ore accounts for 98% of the total proved resource reserves. The vast majority of iron ore can be used only after beneficiation and enrichment

under low prices, foreign mining enterprises can still maintain considerable profit margins with high-quality resources and lower costs, while domestic mining enterprises are struggling. "Domestic iron and steel enterprises with mines have difficulties in operation, and even become a burden for operation and development." Zhu Jimin, executive vice president of China Iron and Steel Association, said

it can reduce costs, but the impact is limited

at present, China's iron mining enterprises have to pay 25 taxes every year, and the comprehensive tax burden rate is between 20% and 30%

according to the previous policy, according to different levels, the resource tax of iron mines is levied at RMB per ton of raw ore, temporarily at 80%, that is, 11% of the resource tax per ton of raw ore 2 yuan; If the beneficiation ratio is 3.3:1, the resource tax per ton of concentrate is at 33 Between 36 yuan/ton. In this way, after May 1, the resource tax will be reduced by 40%, and the tax burden of iron ore enterprises will drop by 16 68 yuan/ton concentrate. According to the iron ore price on April 15, the tax included price of 62% grade dry base iron concentrate of domestic iron ore is 546.79 yuan/ton, accounting for about 3.1%-5.8% of the iron ore price

"reducing the tax burden is good for mining enterprises. It can also carry out automatic control experiments of constant speed loading, constant speed deformation 3, closing the oil return valve and constant speed displacement." However, Li Xinchuang, President of the metallurgical industry planning and Research Institute, also said that under the current background of oversupply, the adjustment of resource tax has a limited impact on enterprise costs, and it is difficult for enterprises to get out of trouble based on this

Li Xinchuang believes that in order to promote the development of the iron ore industry, policy support for the mining industry should be further increased. For example, the "ad valorem" of the iron ore resource tax can be changed to "ad valorem", that is, based on the product sales revenue, the tax should be directly linked to the resource market price

"to get out of the dilemma, on the one hand, the state needs to adjust fiscal and tax policies, and on the other hand, mining enterprises need to look inward to improve quality and efficiency." Zhu Jimin told that since last year, many domestic mines have begun to reduce costs through measures such as improving labor productivity, adjusting process flow and ore grade structure, and reducing unreasonable expenditures

the situation of being controlled by others needs to be solved.

under the circumstances of high cost and low price, even steel enterprises with subordinate mines are more inclined to buy imported iron ore. This makes us have to face such a figure: China is already the largest consumer of iron ore in the world, and imported iron ore accounts for more than 60% of the international iron ore trade; In 2014, China's dependence on foreign iron ore has exceeded 78.5%. Industry insiders said that if iron ore prices continue to fall, the degree of external dependence may be higher than 80%

"if China maintains an annual output of about 400 million tons of concentrate, its external dependence can be roughly balanced, and at least it will not lose its voice in the international monopoly mining enterprises. If the dependence continues to rise, the situation may change fundamentally." Zhu Jimin said

"iron and steel enterprises in Japan and South Korea have always relied on imported iron ore." Li Xinchuang believes that we should pay attention to the degree of dependence, but don't be afraid. "At present, China consumes about 60% of the world's iron ore every year, and others are afraid that you won't buy them!" In Li Xinchuang's view, what deserves more attention than the degree of dependence is that the overseas resources and equity minerals held by China's steel enterprises are too small

from 2006 to 2014, the overseas equity investment of various Chinese enterprises in iron ore exceeded US $25billion, and the proved and controlled reserves of Chinese mining related projects were about 98 billion tons. Even so, the output of China's overseas equity mines in 2014 was only about 73 million tons, accounting for only 8% of the annual import volume, and most of the equity mines are lean mines, with weak supporting facilities and great difficulty in development. In contrast, Japan's overseas equity imports of iron ore are about 74million tons, accounting for 50% to 60% of its annual iron ore imports

in this regard, Li Xinchuang suggested that on the one hand, enterprises should be supported to control the development resources abroad, so that the proportion of overseas iron ore equity mines in China's imported mines can reach more than 50%; On the other hand, we can consider supporting enterprises to build steel plants abroad to alleviate the pressure of domestic steel overcapacity

another idea to solve the "controlled by others" situation of iron ore is to reduce excessive dependence on iron ore. There are two main processes in iron and steel production, one is the blast furnace and converter process with iron ore as raw material, that is, the long process, and the other is the electric furnace process with scrap as raw material, that is, the short process. If electric furnace steel is used to replace blast furnace steel, the demand for iron ore can be reduced. With the increase of China's steel savings and the arrival of the scrap period in machinery, automobile, construction and household appliances industries, the scrap recovery will increase significantly. It is estimated that by 2025, China's scrap recovery will increase by about 150 million tons, which can replace 240 million tons of finished iron ore

Li Xinchuang believes that EAF steel will grow rapidly in China in the future. Therefore, enterprises should take countermeasures in advance