Following on from the previous lobbying work done on mining taxation in China, the CIMG is currently drafting a "Mining Taxation White Paper" for release in late 2008. With the support of sponsoring members and KPMG this white paper will focus only on taxation policy and the implications for miners and explorers operating in China.

This white paper will involve structured workshops between a group of interested  industry sponsor companies and SAT (State Adminsitration of Taxation).

It is planned that this white paper will generate a response  from SAT in generating positive change on how taxation is implemented for mining exploration companies in China. SAT is engaged in reviews of existing tax legislation in China and appeared open to constructive comments and submissions in respect of the tax aspects of inward investment in mining.

Some of the main areas covered that will be covered in this White Paper:

• Tax loss carry forward/carry back
• Tax depreciation policies
• Preparatory expenses – definition and treatment
• Restoration and reclamation expenses
• Combination of accounts – ways in which tax losses incurred in relation to an unsuccessful project may be utilised against the production of income of other successful mines held by the same mining group, but in a different legal entity.

The CIMG would like to thank the following sponsors for their support of this paper:

Anglo American
AngloGold Ashanti
Continental Minerals (HDI)
Griffin Mining
Rio Tinto
Tianshan Goldfields

Should you wish to view the output of this white paper please contact the CIMG Secretariat at info@cimg.org.cn.