The Financial Offices (Bureaus) in all the provinces, autonomous regions, municipalities and separately listed cities, local taxation bureaus:

In accordance with related regulations of Provisional Regulations of the People’s Republic of China on Resource Tax, and the practical situations of related enterprises, decisions are made as follows:

1. Preferential policy of 30% Resource Tax off on the non-ferrous metal ore shall be abolished.
2. Resource Tax Policy on Iron ore shall be temporarily reduced to 60% of the standard.
3. Resource Tax Policy on Molybdenum Ore shall be adjusted: 8 yuan per ton for first grade, 7 yuan per ton for second grade, 6 yuan per ton for third grade, 5 yuan per ton for forth grade and 4 yuan per ton fifth grade.
4. Resource Tax Policy on Manganese Ore shall be adjusted to 6 yuan per ton.
5. This announcement shall be implemented as of January 1, 2006.
Please act accordingly.

Ministry of Finance
State Administration of the Taxation
December 12, 2005