Wednesday, 08 Feb 2012
Mines and Energy Minister Edison Lobao said that Brazil government is ready to help Vale SA in the negotiations with the Chinese government for its large vessels, which are able to carry about 400,000 metric tonnes of iron ore, to operate in the Asian country.
Mr Lobao told reporters in Brasilia that Vale hasn’t asked for the government’s help in the issue.
(Sourced from Bloomberg)
Showing posts with label Brazil government. Show all posts
Showing posts with label Brazil government. Show all posts
Wednesday, February 8, 2012
Friday, October 7, 2011
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)
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)
Tuesday, August 30, 2011
Ibram says that no accord yet on new mining code in Brazil
Tuesday, 30 Aug 2011
Dow Jones reported that Brazil's Mining Institute Ibram, which groups the country's mining companies, said that no accord has yet been reached on the texts of the country's new mining sector bills, despite widespread reports that the final texts are close to be sent to congress for consideration.
Mr Paulo Camillo president of Ibram said in a statement posted on Ibram's website that “There are still points that the government and the mining sector haven't agreed on yet. Federal government authorities have guaranteed that before the government sends the final texts to parliament, it will again allow producing companies to have the opportunity to look over the texts and, possibly, contribute to their wording.”
Ibram said that there are three distinct bills under consideration. One will establish which royalties will be charged in the sector, another will deal with regulations governing mine deposits and concessions, and a third will set up a new regulatory agency to replace the DNPM.
According to Ibram “It is still unclear when the texts will be ready to send to congress for approval as mining companies still wish to be consulted on the matter, which has so far been under discussion in government ministries.”
Brazilian newspapers including Estado de Sao Paulo, Folha de S.Paulo and Valor Economico have over the past few days carried reports indicating that the final texts of the bills to be sent to congress for approval propose doubling royalties on iron ore sales, taxing export products including iron ore, bauxite and niobium more heavily than mineral products that are processed in Brazil and that mineral deposits may be put up for auction rather than their concessions being approved by state owned mining department DNPM.
(Sourced from Dow Jones Newswires)
Dow Jones reported that Brazil's Mining Institute Ibram, which groups the country's mining companies, said that no accord has yet been reached on the texts of the country's new mining sector bills, despite widespread reports that the final texts are close to be sent to congress for consideration.
Mr Paulo Camillo president of Ibram said in a statement posted on Ibram's website that “There are still points that the government and the mining sector haven't agreed on yet. Federal government authorities have guaranteed that before the government sends the final texts to parliament, it will again allow producing companies to have the opportunity to look over the texts and, possibly, contribute to their wording.”
Ibram said that there are three distinct bills under consideration. One will establish which royalties will be charged in the sector, another will deal with regulations governing mine deposits and concessions, and a third will set up a new regulatory agency to replace the DNPM.
According to Ibram “It is still unclear when the texts will be ready to send to congress for approval as mining companies still wish to be consulted on the matter, which has so far been under discussion in government ministries.”
Brazilian newspapers including Estado de Sao Paulo, Folha de S.Paulo and Valor Economico have over the past few days carried reports indicating that the final texts of the bills to be sent to congress for approval propose doubling royalties on iron ore sales, taxing export products including iron ore, bauxite and niobium more heavily than mineral products that are processed in Brazil and that mineral deposits may be put up for auction rather than their concessions being approved by state owned mining department DNPM.
(Sourced from Dow Jones Newswires)
Tuesday, April 5, 2011
Brazil miner Vale taps Murilo Ferreira as new CEO
Tue Apr 5, 2011 2:34am GM
* Ferreira replaces Roger Agnelli as of May 22
* Follows heavy government pressure to replace Agnelli
RIO DE JANEIRO, April 4 (Reuters) - Brazilian mining giant Vale chose a former executive of the company, Murilo Ferreira, as its new chief executive, replacing Roger Agnelli following months of heavy government pressure.
The nomination will take effect on May 22, Vale , the world's largest iron ore miner, said in a statement.
Ferreira, 58, joined the company in 1998 in its aluminum division and later became president of Vale's nickel operations in Canada. Ferreira left the company in 2008.
The government's heavy hand in replacing Agnelli may spark fears of state meddling in Brazilian private enterprise, but is not expected to dent investor confidence in the firm. (Reporting by Denise Luna, Bruno Marfinitti, Jose de Castro, Guillermo Parra-Bernal; Additional reporting by Brian Ellsworth; Editing by Raymond Colitt)
Friday, March 25, 2011
Brazil pressure on miner Vale stirs political storm
Thu Mar 24, 2011 5:28pm GMT
* Opposition slams government for meddling in Vale
* Could harm Rousseff's market-friendly image
* Gov't says Vale not helping develop economy
By Raymond Colitt and Brian Ellsworth
* Opposition slams government for meddling in Vale
* Could harm Rousseff's market-friendly image
* Gov't says Vale not helping develop economy
By Raymond Colitt and Brian Ellsworth
BRASILIA/RIO DE JANEIRO, March 24 (Reuters) - Brazil's government is facing a political backlash over its apparent efforts to force out the head of mining giant Vale, a case that renews concerns over state meddling in private companies.
Opposition leaders on Thursday demanded Finance Minister Guido Mantega explain reports he asked a shareholder of Vale, the world's largest iron ore miner, to help seek a replacement for CEO Roger Agnelli.
The incident could tarnish President Dilma Rousseff's mostly market-friendly image earned during her first three months in office through strict fiscal discipline and defense of central bank autonomy.
"She believes in a big, strong government and has issues with Agnelli. I have no doubt this pressure is coming directly from Dilma," said Jose Luciano Dias, a Brasilia-based political analyst.
According to government sources, Mantega had approached Brazilian bank Bradesco, a key Vale shareholder, to request help replacing Agnelli with another CEO.
Vale, the government and Bradesco officially declined to comment. Vale's top executives will tender their resignations if Agnelli leaves, according to a company source who spoke on condition of anonymity.
Relations between the government and Vale have been tense for years as politicians complained Vale was not doing enough to create jobs by investing in steel production and was not sufficiently involved in the country's economic development.
Rousseff's predecessor Luiz Inacio Lula da Silva, who championed the revival of Brazil's shipbuilding industry, was also upset with Agnelli because he bought foreign-made vessels.
TENSIONS RISE
Agnelli, 51, a former banker, has further aggravated government officials in recent weeks with his tough stance over a mining royalties debt the government says could reach $2.4 billion.
He may benefit in the short term from having politicians rush to his defense, analysts say, but in the long-run government pressure on Vale will remain because state pension funds are major shareholders.
Most investors believe Vale's strong iron ore project pipeline and low operating costs make it attractive despite the political risks.
They have hailed Agnelli for turning the firm into a global mining giant and the world's top iron ore producer, but the country's top political leaders never forgave him for laying off workers and cutting investments in the wake of the 2008 financial crisis.
Opposition leaders say Mantega's move foreshadows a government takeover of the former state-run firm, which was privatized in 1997.
"This creates the risk of devaluing Brazil's largest private company, we can't allow it to become a government slush fund," said Senator Cyro Miranda, who filed the petition to hear Mantega. "Even government legislators are worried and want to know what is going on."
The government cannot directly push Agnelli out of office, but it indirectly holds a majority stake in the company's controlling shareholder Valepar via state pension funds and the state development bank BNDES.
The company's board of directors can decide whether or not to change the CEO. Analysts say the government would need the support of one of the two other main shareholders of the company, Bradesco or Japanese trading house Mitsui. (sourced:Reuters)
Opposition leaders on Thursday demanded Finance Minister Guido Mantega explain reports he asked a shareholder of Vale, the world's largest iron ore miner, to help seek a replacement for CEO Roger Agnelli.
The incident could tarnish President Dilma Rousseff's mostly market-friendly image earned during her first three months in office through strict fiscal discipline and defense of central bank autonomy.
"She believes in a big, strong government and has issues with Agnelli. I have no doubt this pressure is coming directly from Dilma," said Jose Luciano Dias, a Brasilia-based political analyst.
According to government sources, Mantega had approached Brazilian bank Bradesco, a key Vale shareholder, to request help replacing Agnelli with another CEO.
Vale, the government and Bradesco officially declined to comment. Vale's top executives will tender their resignations if Agnelli leaves, according to a company source who spoke on condition of anonymity.
Relations between the government and Vale have been tense for years as politicians complained Vale was not doing enough to create jobs by investing in steel production and was not sufficiently involved in the country's economic development.
Rousseff's predecessor Luiz Inacio Lula da Silva, who championed the revival of Brazil's shipbuilding industry, was also upset with Agnelli because he bought foreign-made vessels.
TENSIONS RISE
Agnelli, 51, a former banker, has further aggravated government officials in recent weeks with his tough stance over a mining royalties debt the government says could reach $2.4 billion.
He may benefit in the short term from having politicians rush to his defense, analysts say, but in the long-run government pressure on Vale will remain because state pension funds are major shareholders.
Most investors believe Vale's strong iron ore project pipeline and low operating costs make it attractive despite the political risks.
They have hailed Agnelli for turning the firm into a global mining giant and the world's top iron ore producer, but the country's top political leaders never forgave him for laying off workers and cutting investments in the wake of the 2008 financial crisis.
Opposition leaders say Mantega's move foreshadows a government takeover of the former state-run firm, which was privatized in 1997.
"This creates the risk of devaluing Brazil's largest private company, we can't allow it to become a government slush fund," said Senator Cyro Miranda, who filed the petition to hear Mantega. "Even government legislators are worried and want to know what is going on."
The government cannot directly push Agnelli out of office, but it indirectly holds a majority stake in the company's controlling shareholder Valepar via state pension funds and the state development bank BNDES.
The company's board of directors can decide whether or not to change the CEO. Analysts say the government would need the support of one of the two other main shareholders of the company, Bradesco or Japanese trading house Mitsui. (sourced:Reuters)
Friday, March 11, 2011
Vale says Brazil gov't overcharging for royalties
Thu Mar 10, 2011 9:08pm GMT
* Vale seeking legal review of royalty payments
* Gov't source sees Vale owing up to $2.4 bln
(Reporting by Leo Goy in Brasilia and Brian Ellsworth in Rio de Janeiro; Editing by Lisa Shumaker)
* Vale seeking legal review of royalty payments
* Gov't source sees Vale owing up to $2.4 bln
RIO DE JANEIRO, March 10 (Reuters) - Brazilian mining giant Vale (VALE5.SA: Quote) said on Thursday the government is overcharging it for mineral royalties and will seek a legal review of some the requested payments amid a dispute over debts to the government that could reach $2.4 billion.
Vale, the world's largest iron ore miner, insisted it had made payments according to the law and said it disagreed with the government over criteria for calculating what it owed.
Analysts say the dispute, which comes as Brazil mulls an increase in mineral royalties that would boost government revenues from the booming mining business, is unlikely to financially harm the company or hinder its operations.
"Vale believes that the values being charged ... are excessive and should be submitted to (review of) judicial experts," the company said in a statement. "Discussions of the correct interpretation of laws are perfectly legitimate."
The firm said the government agency that collects royalties had in some cases considerably lowered requested payments when the company challenged them.
A source at the Mines and Energy Ministry told Reuters on Thursday that the disputed amount could reach 4 billion reais ($2.4 billion). A second source said that figure was the accumulation of a number of royalty disputes dating back years.
The sources said Mines and Energy Minister Edison Lobao had requested a review of pending mining royalty debts and had met with President Dilma Rousseff about the Vale dispute.
Authorities in the northern state of Para had sought to suspend Vale's license to operate the giant Carajas iron mine over the unpaid royalties, though that decision was quickly overturned by the same agency, Vale said.
Operations at Carajas were not affected, according to a company spokeswoman. Analysts for brokerage Ativa said in a research note on Thursday the dispute was unlikely to affect future operations at Carajas or to be resolved quickly.
The royalties in question relate to minerals extracted in Para, where Carajas is located, and in the state of Minas Gerais in the south east.
Vale, the world's largest iron ore miner, insisted it had made payments according to the law and said it disagreed with the government over criteria for calculating what it owed.
Analysts say the dispute, which comes as Brazil mulls an increase in mineral royalties that would boost government revenues from the booming mining business, is unlikely to financially harm the company or hinder its operations.
"Vale believes that the values being charged ... are excessive and should be submitted to (review of) judicial experts," the company said in a statement. "Discussions of the correct interpretation of laws are perfectly legitimate."
The firm said the government agency that collects royalties had in some cases considerably lowered requested payments when the company challenged them.
A source at the Mines and Energy Ministry told Reuters on Thursday that the disputed amount could reach 4 billion reais ($2.4 billion). A second source said that figure was the accumulation of a number of royalty disputes dating back years.
The sources said Mines and Energy Minister Edison Lobao had requested a review of pending mining royalty debts and had met with President Dilma Rousseff about the Vale dispute.
Authorities in the northern state of Para had sought to suspend Vale's license to operate the giant Carajas iron mine over the unpaid royalties, though that decision was quickly overturned by the same agency, Vale said.
Operations at Carajas were not affected, according to a company spokeswoman. Analysts for brokerage Ativa said in a research note on Thursday the dispute was unlikely to affect future operations at Carajas or to be resolved quickly.
The royalties in question relate to minerals extracted in Para, where Carajas is located, and in the state of Minas Gerais in the south east.
(Reporting by Leo Goy in Brasilia and Brian Ellsworth in Rio de Janeiro; Editing by Lisa Shumaker)
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