SHANGHAI Chinas Yunnan Copper Co. Ltd. saw net
profits fall 96 percent year on year in 2012 on lower metal
prices and warned that higher resource taxes and tougher
environmental regulations could pose a challenge this year as
Yunnan Copper recorded net profits of 24.9 million yuan ($4
million) in the full year 2012, down sharply from 622 million
yuan in 2011, the company reported to the Shenzhen Stock
Exchange on April 3.
Pressures from energy conservation, emission reduction,
work safety and environmental protection will affect the
companys industry layout, it said. The reform
and expansion of resources tax will cripple profitability of
the companys copper mining branches.
Chinas ministry of finance and state administration of
taxation jointly announced in February plans to raise resources
taxes on mining molybdenum, tin and iron ore, among others.
Yunnan Copper produced 433,540 tonnes of copper cathode in
2012, up 14 percent year on year. It also produced 7.6 tonnes
of gold and 537 tonnes of silver in 2012, representing
year-on-year increases of 22.6 percent and 13.3 percent,
A version of this article was first published by AMM sister
publication Metal Bulletin.