• 24 hours PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 1 day Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 1 day Syrian Rebels Relinquish Control Of Major Gas Field
  • 1 day Schlumberger Warns Of Moderating Investment In North America
  • 1 day Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 1 day Energy Regulators Look To Guard Grid From Cyberattacks
  • 1 day Mexico Says OPEC Has Not Approached It For Deal Extension
  • 1 day New Video Game Targets Oil Infrastructure
  • 1 day Shell Restarts Bonny Light Exports
  • 2 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 2 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 2 days British Utility Companies Brace For Major Reforms
  • 2 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 2 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 2 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 2 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 2 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 2 days Rosneft Signs $400M Deal With Kurdistan
  • 3 days Kinder Morgan Warns About Trans Mountain Delays
  • 3 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 3 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 3 days Russia, Saudis Team Up To Boost Fracking Tech
  • 3 days Conflicting News Spurs Doubt On Aramco IPO
  • 3 days Exxon Starts Production At New Refinery In Texas
  • 4 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 4 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 4 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 4 days China To Take 5% Of Rosneft’s Output In New Deal
  • 4 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 4 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 4 days VW Fails To Secure Critical Commodity For EVs
  • 4 days Enbridge Pipeline Expansion Finally Approved
  • 4 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 4 days OPEC Oil Deal Compliance Falls To 86%
  • 5 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 5 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 5 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 5 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 5 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 5 days Aramco Says No Plans To Shelve IPO
Alt Text

Copper Prices Ignited By Chinese Demand Growth

Copper prices saw some gains…

Alt Text

Will Ecuador’s Mining Sector Return To Its Golden Days?

Despite the recent political problems…

Local Tax Reforms To Impact Global Metal Market

Local Tax Reforms To Impact Global Metal Market

Mining just got a lot tougher in one key commodities nation this week.

Struggling metals producer India.

The minerals industry is feeling the pinch after a slate of new measures implemented by the government. Which insiders say will raise the cost of mining — potentially impacting production of key commodities here.

The first hit to miners was a raise in mineral royalties. Which was confirmed in India’s parliament last week. Related: Wall Street Losing Millions From Bad Energy Loans

Royalties will now rise nearly across the board. With officials forecasting that the increased rates will grow royalty payments across the country by over 40% — implying an increased tax burden of $2.1 billion for the industry as a whole.

At the same time, a new bill has also been unveiled that would increase miners’ payments to local populations affected by projects. Potentially adding an additional tax burden to operations.

All of which suggests that the cost for winning metal in India is going to rise substantially. Leading to the question — what commodities could be affected?

Related: Is America Missing This Upcoming Mining Hotspot?

India is in fact a top-five global producer of a number of key products: alumina, iron ore, chromium and graphite.

As the chart below shows, the amount of worldwide supply that India’s miners put out in these markets is significant.

India'sPercentageOfGlobalProduction

Source: USGS

Markets like chromium and graphite are of course more minor globally. But alumina and iron ore are two of the most-traded commodities around the planet.

Related: Economic Inefficiency Means Low Oil Prices Are Here To Stay

With India commanding 8% and 5%, respectively, of the production in these spaces, events in the minerals sector here are well worth paying attention to. Watch for news on miners’ reaction to the new tax rules — and any attendant mine shutdowns and reductions in supply.

Here’s to a taxing situation,

Dave Forest

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News