1 Federal government resource tax ( MRRT ) The major principles of collection

1.1 Only for projects with annual gross profit exceeding A$75,000,000 subject to collection;

    1.2   The tax rate applies only to the profits from the extraction of raw coal. (MRRT liability) For 30% ; If the project company sells refined coal that has been washed and sorted, and the profit from raw coal mining cannot be separately calculated, then only... 22.5% Collection; ( Extraction allowance )

    1.3   In principle, we do not engage in resource taxes with the state government. ROYALTY ) Repeated collection, but if the calculated... MRRT liability Higher than royalty Then only the excess portion will be additionally collected; ( royalty allowance )

    1.4   The costs for previous exploration, infrastructure, and other related expenses have been recouped (at an annual interest rate of...). LTBR +7% It was only after the growth that the levy began to be imposed; ( pre-mining loss allowance )

    1.5  If it’s a project acquisition, the project will break even upon recouping its investment (at an annual interest rate of...). LTBR + 7% It was only after the increase that collection began. ( starting base allowance )

Note: LTBR = long-term bond rate The government's long-term Treasury bond yield, Australia 10 The annual government bond interest rate is at 5% Left and right float

Let’s take two examples to illustrate the principles mentioned above, respectively.

Example 1：

Assume the project's annual production. 500 10,000 tons, with a sales price at the mine mouth of per ton. $50 Coal mining and washing costs (excluding state government resources) 7% (Tax and financial expenses) are $30. So, the project company’s annual gross profit is ( $50 - $30 ) *500 Ten thousand = 10000 Ten (more than 7500 Ten thousand, 1.1 ), then

MRRT liability = 10,000 Ten thousand * 22.5% = $2250 Ten thousand; ( 1.3 )

And the taxes payable to the state government are:

Royalty allowance = $50 × 7% × 500 Ten thousand = $1750 Ten thousand;

So MRRT Under the mechanism, the project company must remit funds to the state government. $1750 Ten thousand, to be remitted to the federal government. $2250 Ten thousand - $1750 = $500 Ten thousand. 1.4 )

Note: By substituting with mathematical formulas, you’ll immediately see that the gross profit margin (gross profit) for that year... / Sales) greater than 7% / 22.5% = 31% Only then is an additional payment required. MRRT 。

In the example 1 Among them, if the mining cost exceeds per ton $35, Gross profit margin = $15/$50 = 30% Less than 31% ) , Then there’s absolutely no need to pay. MRRT 。

Example 2，

Example 1 Meanwhile, the project company paid the state government. royalty After , Annual net profit is:

$10,000 Ten thousand – $1750 Ten thousand = $8,250 Ten thousand

Suppose Zhejiang Energy with $1.5 Hundred-million-dollar acquisition WM 51% rights and interests, and contribute capital in proportion to shareholding. 1.5 A$100 million to build a coal mine—total investment amounts to... 3 billion, while annual profit is $8,250 Ten thousand *51% = 4207.5 Ten thousand.

If LTBR = 5% , meaning the government's converted interest rate is 5% + 7% = 12% ( 1.4, 1.5 ), Then Zhejiang Energy needs. 12 It will take a year to recoup the principal and interest. So, for example... 1 in the 500 Ten thousand's MRRT To wait until 12 You’ll only need to pay annually starting from the following year.

If LTBR = 6% Then, for example 1 in the 500 Ten thousand MRRT You’ll never have to pay it again.

Overall, the federal government guarantees that investors will be paid according to... LTBR +7% The annual yield will only start being taxed after the initial investment has been recouped. MRRT 。

If Zhejiang Energy’s internal rate of return requirement is... 12% The following items (below the federal government’s permitted rate of return) do not need to be considered in the valuation.

If Zhejiang Energy’s return requirement is: 15% If so, then MRRT will be 12 It will be collected annually starting from the following year.