Zijin Mining's shares drop on tax hike report

SHANGHAI - Zijin Mining Group Co Ltd said on Thursday that its tax rate will rise 10 percent this year after the government canceled its status as a high-tech company, following a severe pollution incident last year.

In a statement to the Shanghai Stock Exchange, the country's leading gold and copper producer said its tax rate has increased from 15 percent to 25 percent, the standard level of corporate income tax in China.

Zijin's A shares in Shanghai fell 3.05 percent to 7.63 yuan ($1.16) on Thursday, after the announcement.