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 well.
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, respectively.
A version of this article was first published by AMM sister publication Metal Bulletin.