RE:RE:http://c.newsnow.co.uk/A/932061085?-15845:2006Somehow Reuters actually obtained a copy of the written proposal submitted by mining companies. It does flesh out more details than we have seen up till now. We know that Ivanhoe, and their partner Zijin, both signed. It's very important they remain on the same page going forward. Other signatories are a who's who of international miners.
We have specific numbers on proposed sliding royalties:
Copper and Gold 3 to 6%; Cobalt 2 to 10%
In exchange, the government would drop the 50% windfall tax, and the strategic metal category.
Reuters quotes directly from the document. Everyone else has been limited to second hand reports. In regards to the proposals:
“but if they should be rejected, we will maintain our position that the provisions concerned should be subject to transitional measures and cannot then be immediately applied”
If miners "maintain our position", this entails arbitration and the delay of investment. Since both Western and Chinese miners are signatories, it also implies they won't allow the government to play them off against each other. The above quote very tactfully suggests the government has a choice. Compromise, or watch investment dry up. This proposal ensures the government will benefit from any improvement in metals prices, while at the same time protecting investment.