Brazil to hike royalty on iron ore mining

Friday, 07 Oct 2011

Bloomberg quoted a Brazils’ mining ministry official as saying that Brazil plans to boost taxes on iron ore while cutting the levy on fertilizers as part of a plan to overhaul mining regulations.

Mr Claudio Scliar Brazil’s ministry’s secretary for geology and mining, said in an interview that the government is studying a plan to double the royalty on iron ore to 4% of gross revenue from 2% of net sales now.

He also said that “The levy on fertilizers may be reduced from 3% to prompt producers to increase domestic output of the crop nutrients.”

Brazil’s government has shifted its focus to mining after boosting state control over the oil industry in 2009. The ministry aims to send Congress three bills this month to alter minerals royalties, change the way mining concessions are granted and create a new regulating body.

(Sourced from bloomberg.net)