Chinese province introduces plan to shore up copper industry

Jiangxi Province in China has reportedly introduced measures designed to aid copper producers that have been affected by the COVID-19 pandemic.

According to Reuters, the measures include tax breaks and preferential loan terms. The province is home to China’s largest copper company, Jiangxi Copper Co., and borders Hubei Province, which was the epicenter of the novel coronavirus outbreak in China. Previously, Yunnan Province announced a drive to stockpile nonferrous metals for a year.

Reuters cites the Jiangxi provincial government’s WeChat account as the source of the information, noting 16 additional measures were mentioned, including taxing only 90 percent of the earnings of firms that sell copper and copper products made from scrap metal, and allowing them to reclaim 30 percent of value-added tax (VAT) paid.

The province also directed banks to extend the deadline for principal and interest repayments on loans to small and mid-sized copper companies to June 30. They were also instructed not to levy penalty interest, Reuters reports.

“The province would also expand copper consumption by broadening sales channels and encourage businesses to give priority to key enterprises amid a tight market for raw materials such as scrap and copper concentrate,” Reuters reports.

The Jiangxi government also said it would “revitalize” scrap import quotas, according to the article, and transfer quotas held by traders to copper processors.