Rossi Mineral Tax

China ' s intervenants will share the entire gold mining market in Russia

In the near future, Chinese companies plan to engage in gold-producing ventures in Zabaykalje and the Far East, reported to the Izvestians the head of the Russian Union of Gold Industrialists, Sergei Kashuba, writing the Great Epoha.

China is buying shares in gold-producing companies from different countries in order to guarantee the future supply of gold at low prices, according to experts. " The increase in the gold reserve should be one of China ' s key strategies, regardless of whether it is necessary for the economic security of the State or for the acceleration of the internationalization of Yuan " , was stated by Sung Jaox in the central party newspaper Geneva Gibao.

According to Sergei Kashuba, Russian gold mining projects are interested in a number of major Chinese companies, such as Zijin Mining, China Gold, Zhaojin Mining Industry, Shahdong Gold. Relations with Chinese intervents have been developed over three to five years. Chinese investors are planning to obtain Reference share in Russian projects♪ Public companies and companies with a State party may act as investors.
Chinese buyers also attract tax benefits in the Baikal region and the Far East. Representatives of three to four major Chinese companies attended the East Economic Forum on these benefits. The price of gold is rising around the world, which also increases China ' s interest in gold mining.

Tax benefits for Chinese ex-RF owners

“If the investor has invested 50 million roubles in the Far East for three years or 500 million roubles for five years, the investor has been entitled to a 10-year benefit in the payment of the tax on profits and tax on mining (FDI)”, Alexander Galushka explained earlier.

Within 10 years of the first profit from the investment project, the entrepreneur does not pay a portion of the income tax credited to the federal budget (2 per cent). The regional share of the tax will be 0 to 100 per cent by decision of the region. An investor is exempted by 2 years, and the tax is reduced by 20 per cent every two years.

Key gold deposit

The Chinese are particularly interested in the key field in Zabaykalje, which contains about 80 tons of gold. Owing to sophisticated gold technology, the deposit was frozen more than 10 years ago. It requires effective technologies available to China Gold, noted the Finama Analyst, Alexei Kalachev.

Chinese investors are now concluding a purchase transaction from Indian company SUN Gold Ltd, 70 per cent of the Core gold deposit.