Mexican steel industry mulls mining tax impact
Nov 08, 2013 | 01:50 PM
| Rodrigo Alonso
MEXICO CITY A new mining tax could hurt the profitability of Mexican steel companies and miners, and could curb mining investment, steelmakers in the country told AMM sister publication Steel First.
The Mexican senate recently approved a 7.5-percent tax on miners earnings as part of a wider package of tax reforms (amm.com, Nov. 7). The tax will become effective Jan. 1, 2014.
Mexico can expect a drop in mining investment as it becomes "more attractive for an investor to carry out their mining investments outside Mexico," a spokesman for ArcelorMittal Mexico SA de CV said.
The Mexican mining royalty exceeds the taxes charged in other Latin American countries such as Peru and Chile, ArcelorMittal noted.....
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