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China raised the resource tax rates on iron ore, tin ore, molybdenum ore, magnesite, talc, and boron, with the tax rate on iron ore raised from 60 percent to 80 percent, reports Shanghai Securities News, citing the Ministry of Finance.

Following the adjustment, the resource tax rates on tier 1 tin ore mines and tier 2 mines were raised 20-fold, from one yuan and 0.9 yuan per ton to 20 yuan per ton and 18 yuan per ton, respectively.

For molybdenum ore, the resource tax rates on tier 1 mines and tier 2 mines were raised by four yuan each to 12 yuan and 11 yuan per ton, respectively.

According to industry insiders, tin ore metals are widely used in the electronic products, petrochemical, metallurgy, mechanical, energy, light industry, environmental protection, and agriculture industries.

China collected 59.89 billion yuan of resources taxes in 2011, an increase of 43.4 percent year-on-year.

The relatively large hike in the resource tax reflects the value of the rare resources, and will raise the production costs of  companies using these minerals, added the industry insiders.

Shares of Tongling Nonferrous Metals (000630) rose 0.37 percent to close at 21.59 yuan per share today.China raised the resource tax rates on iron ore, tin ore, molybdenum ore, magnesite, talc, and boron, with the tax rate on iron ore raised from 60 percent to 80 percent, reports Shanghai Securities News, citing the Ministry of Finance.

Following the adjustment, the resource tax rates on tier 1 tin ore mines and tier 2 mines were raised 20-fold, from one yuan and 0.9 yuan per ton to 20 yuan per ton and 18 yuan per ton, respectively.

For molybdenum ore, the resource tax rates on tier 1 mines and tier 2 mines were raised by four yuan each to 12 yuan and 11 yuan per ton, respectively.

According to industry insiders, tin ore metals are widely used in the electronic products, petrochemical, metallurgy, mechanical, energy, light industry, environmental protection, and agriculture industries.

China collected 59.89 billion yuan of resources taxes in 2011, an increase of 43.4 percent year-on-year.

The relatively large hike in the resource tax reflects the value of the rare resources, and will raise the production costs of  companies using these minerals, added the industry insiders.

Shares of Tongling Nonferrous Metals (000630) rose 0.37 percent to close at 21.59 yuan per share today.