Effectively it states that the super-tax will be shifted to the point of extraction, and any further value added processing (e.g. beneficiation) will be exempt from the tax.
Hence it is possible that the "profit" figure derived for the tax would be struck on the value of the ore BEFORE it is beneficiated. If so, this would give BRM a major advantage over other hematite produces that are extracting DSO quality ore. BRM's non-beneficiated product isn't likely to be profitable at all.
A bizarre outcome of this change is that it will benefit miners of lower grade product, as the post beneficiated product would be exempt from taxation.
Could this change inadvertently propel BRM to the top of the Fe profitability table?
BRM Price at posting:
$3.27 Sentiment: Buy Disclosure: Held
