At a tax rate of 5%, a lead-zinc mine, producing 200,000 tonnes of ore annually, must pay 35 yuan per tonne of lead-zinc concentrate (Pb 2%, Zn 6%) when lead and zinc concentrate prices average 12,000 yuan per tonne and 10,000 yuan per tonne, respectively, both measured in metal content. However, the resource tax will be no more than 20 yuan per tonne if calculated on quantity.

 

The price-based resource tax will place a higher cost burden on lead-zinc mines than the quantity-based one. The higher tax burden on mine sales may prevent some from exploring mines with higher-grade ores only, and this should help improve utilization rates at current lead-zinc mines.