The secretary-general of the China Iron & Steel Association, Shan Shanghua, has emphasized that China will not accept any increase in iron ore prices arising from the Australian government’s proposed mineral resources rent tax (MRRT).
At an iron and steel conference in China, Shanghua said that the country’s steelmakers see steel prices as reaching a ceiling, while users of that steel, such as the manufacturers of vehicles and home appliances, would not be able to absorb any cost increases.
However, Australia’s Resources Minister, Martin Ferguson, has replied by pointing out that the MRRT could not affect global mineral prices, which are set on world commodity markets and depend on such factors as global supply and demand, quality and supply reliability.
The MRRT, he added, would only be levied on the profits of mining companies. Those profits would themselves rise or fall in direct relation to global mineral prices.
.Tags: tax | corporation tax | Australia | China | mining | China | Australia
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