Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

The Russian government intends to triple taxes levied on mining and metal extraction in order to reduce its budget deficit. 


Ferrous metals are currently taxed at 4.8pc and non-ferrous metals, excluding precious metals, are taxed at 8pc.


The new mineral extraction tax (MET) will be imposed on mining and fertilizer companies in the country beginning next rear. Some major producers the MET will affect are Norsk Hydro, Rusal, Evraz, Severstal and NLMK, among others. The move is slated to rope in about RUB340bn ($4.5bn) in additional revenue for the government. 


In a recent government meeting, Russian Prime Minister Mikhail Mishustin said the tax hike will solve budgetary issues facing his govrnment. Most of the miners involved have urged authorities in vain not to raise the MET.

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