Russia raises extraction tax on iron ore, coal, potassium from 2022

MOSCOW, Nov 18 (PRIME) -- Russia’s lower house of parliament, the State Duma, passed on Thursday a law raising the minerals extraction tax (MET) on iron ore, coking coal and potassium salts from 2022.

The tax for iron ore will be set at 4.8% of the global average price according to the SGX TSI Iron Ore CFR China (62% Fe Fines) Index Futures / Options. For multicomponent complex ores the tax will be calculated basing on the average world prices for copper, nickel, palladium, platinum, gold and cobalt basing on 6% of the value of these components.

The tax for apatite-staffelite ores will be 82 rubles per tonne, for apatite-magnetite ores 207 rubles, for low-iron apatite ores 132 rubles per tonne and for apatite-nepheline, apatite and phosphorite ores the rate will increase from 3.5 to 7.

The tax on coking coal is to be set at 1.5% of the average price according to the SGX TSI TSI FOB Australia Premium Coking Coal OTC Futures / Options index.

For potassium, an additional coefficient of 85 rubles per tonne of ore mined is introduced.

(72.8228 rubles – U.S. $1)

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