China To Impose Tax on Rare Earth Minerals (REE) (SHZ) (MCP)
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According to Chinese publication Xinhua, China will begin to impose a tax on rare earth minerals starting on April 1, 2011. The paper cites a statement issued by the Ministry of Finance and the State Administration of Taxation to rare earth producers.
The tax will be 60 yuan (about $9.1) per ton for light rare earths, and 30 yuan per ton for medium and heavy rare earths.
One rare earth company General Manager said that the tax would increase their annual production costs by 720 million yuan (about $109.74 million) just this year.
As previously reported, rare earth prices have rocketed $34,000 to $109,036 per ton. Last July, the minerals were selling at just $14,405 per ton prior to restrictions being placed on exports by China. China controls 95% of the world's rare earth market.
Stocks to watch on the news include:
The tax will be 60 yuan (about $9.1) per ton for light rare earths, and 30 yuan per ton for medium and heavy rare earths.
One rare earth company General Manager said that the tax would increase their annual production costs by 720 million yuan (about $109.74 million) just this year.
As previously reported, rare earth prices have rocketed $34,000 to $109,036 per ton. Last July, the minerals were selling at just $14,405 per ton prior to restrictions being placed on exports by China. China controls 95% of the world's rare earth market.
Stocks to watch on the news include:
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