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Incentives offered for Chinese mining companies who want to upgrade

Updated: 2016-04-20 21:32
By Wang Yanfei (chinadaily.com.cn)

The Ministry of Land and Resources said on Wednesday that it will release a five-year-guidance for providing financing support and tax cut policies to mining companies that are willing to upgrade mining facilities by the end of this year.

"Companies should further seek solutions to boost mining efficiency. The nation is speeding up efforts to protect natural resources during the 13th Five Year Plan," said Yu Haifeng, director at the department of mineral resources under the Ministry of Land and Resources.

Yu said the mining companies that develop major mineral resources, such as cooper, iron and aluminum, are able to get around 40 percent of financial support towards upgrades. While companies that exploit other types of less-widely used mineral resources, are able to get 10 to 25 percent.

In the meantime, the Ministry and State Administration of Taxation will make more efforts to promote resource tax reform. This is to reduce tax burden to cash-restrained companies and encourage them to make investment to improve mining efficiency.

A sample survey conducted by the ministry earlier this year shows that natural resources' exploitation in China is gradually becoming more efficient. The recovery rate for coal mining gauges the level that can be recovered from known coal reserves increased 15 percentage points compared to the levels in 1999.

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