Friday, 11 Nov 2011
BHP Billiton has finalized an agreement with the Western Australian Government to increase the royalty rate payable to the State for its iron ore Fines product.
Based on this agreement, the Western Australian Government will proceed with amendments to the State Agreement Acts covering operations managed by BHP Billiton Iron Ore.
These amendments will include an increase in the royalty rate applicable to iron ore Fines from 5.625% of sales revenue to 6.5% from July 1st 2012, and then to 7.5% from July 1st2013. This will align the royalty rate for Fines with the existing rate paid on Lump ore.
Mr Ian Ashby BHP Billiton iron ore president said that "The changes to the State Agreements will give the Company greater certainty in planning and executing our growth projects, particularly the proposed Outer Harbour Development.”
The State Agreement amendments are subject to the approval of the Parliament of Western Australia.
Showing posts with label iron ore royalties. Show all posts
Showing posts with label iron ore royalties. Show all posts
Friday, November 11, 2011
Thursday, November 3, 2011
Mines ministry pushes for new iron ore royalty maths
Thu, 3 Nov, 2011 |sourced ET
NEW DELHI: The mines ministry will push for a new system of calculating royalties instead of the current practice of basing it on an average price determined by the Indian Bureau of Mines, ministry officials said. Under the new method, pithead prices, on which royalty is based, will be discovered from iron prices across the supply chain.
The ministry says this proposal, which is unlikely to raise royalty collections for states, will be taken up by its study group later this week. In its report on illegal mining in Karnataka, the state Lokayukta had criticized the practice of using the statewise average prices put out by the bureau, saying that it lead to lower royalty collections. The Lokayukta had found that the bureau's weighted average pitmouth value of ore, to be collected from the top 10 non-captive producers, did not accurately reflect market price of iron ore.
The ministry, however, maintains that royalty can only be collected on the pithead price of iron ore and cannot be based on market prices. In May, Orissa chief minister Naveen Patnaik had also asked for royalty to be charged on NMDC's prices or all-India average prices. Last month, in his reply to Patnaik, mines minister Dinsha Patel said the current practice was adopted after states decided that determining sale prices from individual invoices, particularly for captive mines, was difficult.
In February, rule 45 of Mineral Conservation and Development Rules was amended to allow states to collate prices at different points of sale. Until states decide on what is most convenient to them, the mines ministry will suggest this method for calculation of royalties. An upward revision of royalty rates, allowed once in three years, is now only possible after August 2012. States collect a charge either on the tonnage as in the case of limestone which is largely mined for captive use, or on an ad valorem basis. A royalty of 10% ad valorem is levied on iron ore.
(sourced EconomicTimes)
NEW DELHI: The mines ministry will push for a new system of calculating royalties instead of the current practice of basing it on an average price determined by the Indian Bureau of Mines, ministry officials said. Under the new method, pithead prices, on which royalty is based, will be discovered from iron prices across the supply chain.
The ministry says this proposal, which is unlikely to raise royalty collections for states, will be taken up by its study group later this week. In its report on illegal mining in Karnataka, the state Lokayukta had criticized the practice of using the statewise average prices put out by the bureau, saying that it lead to lower royalty collections. The Lokayukta had found that the bureau's weighted average pitmouth value of ore, to be collected from the top 10 non-captive producers, did not accurately reflect market price of iron ore.
The ministry, however, maintains that royalty can only be collected on the pithead price of iron ore and cannot be based on market prices. In May, Orissa chief minister Naveen Patnaik had also asked for royalty to be charged on NMDC's prices or all-India average prices. Last month, in his reply to Patnaik, mines minister Dinsha Patel said the current practice was adopted after states decided that determining sale prices from individual invoices, particularly for captive mines, was difficult.
In February, rule 45 of Mineral Conservation and Development Rules was amended to allow states to collate prices at different points of sale. Until states decide on what is most convenient to them, the mines ministry will suggest this method for calculation of royalties. An upward revision of royalty rates, allowed once in three years, is now only possible after August 2012. States collect a charge either on the tonnage as in the case of limestone which is largely mined for captive use, or on an ad valorem basis. A royalty of 10% ad valorem is levied on iron ore.
(sourced EconomicTimes)
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)
Saturday, August 27, 2011
SC extends mining ban in Karnataka
Saturday, 27 Aug 2011
Following a report of the centrally empowered committee of the court, India’s Supreme Court on Friday has finally suspended iron ore mining in the Tumkur and Chitradurga districts of Karnataka.
The forest bench headed by Chief Justice SH Kapadia said the fundamental right to life, which includes a clean environment, was above the right to trade in the Constitution. CJ stressed that economic development should be balanced by environmental considerations. He asked the industries to work out a rehabilitation plan and a scientific method to excavate the mines.
However, it asked for suggestions from the Attorney General and others to submit a formula to release 25 million tonnes of iron ore available for immediate use by the steel industry.
The court further directed a joint team to carry out a survey and demarcate the boundaries of the leases, as was ordered in the case of Bellary district earlier. The empowered committee will name the agency in charge of keeping the accounts of sales and royalty payable at the rate of 10 per cent of the market price.
Friday’s order followed the August 19 report of the empowered committee, which stated reckless mining in an unsustainable manner for short-term gains had affected the region’s ecology.
(sourced from BS)
Following a report of the centrally empowered committee of the court, India’s Supreme Court on Friday has finally suspended iron ore mining in the Tumkur and Chitradurga districts of Karnataka.
The forest bench headed by Chief Justice SH Kapadia said the fundamental right to life, which includes a clean environment, was above the right to trade in the Constitution. CJ stressed that economic development should be balanced by environmental considerations. He asked the industries to work out a rehabilitation plan and a scientific method to excavate the mines.
However, it asked for suggestions from the Attorney General and others to submit a formula to release 25 million tonnes of iron ore available for immediate use by the steel industry.
The court further directed a joint team to carry out a survey and demarcate the boundaries of the leases, as was ordered in the case of Bellary district earlier. The empowered committee will name the agency in charge of keeping the accounts of sales and royalty payable at the rate of 10 per cent of the market price.
Friday’s order followed the August 19 report of the empowered committee, which stated reckless mining in an unsustainable manner for short-term gains had affected the region’s ecology.
(sourced from BS)
Thursday, July 21, 2011
Brazilian government to raise domestic iron ore royalties
Thursday, 21 July 2011
Brazilian newspaper Folha de Sao Paulo reported Wednesday that the Brazilian government plans to double its royalties from profits of domestic Brazilian iron ore production from 2 to 4 percent. Such a move would give the government a higher stake in the country's natural resource development. Due to strong demand from China, iron ore is one of Brazil's largest commodity exports.
According to the newspaper, Dilma Rousseff, Brazil's President will introduce new laws into Congress next month that will institute changes to the governments mining royalties. Under the new law, government mining royalties would be capped at 10 percent of a mining company's revenue.
According to the newspaper, Dilma Rousseff, Brazil's President will introduce new laws into Congress next month that will institute changes to the governments mining royalties. Under the new law, government mining royalties would be capped at 10 percent of a mining company's revenue.
Wednesday, March 9, 2011
Brazil wants Vale to pay $2.4 bln royalties-report
Wed Mar 9, 2011 2:41pm GMT
* Company does not agree with debt value, Folha says
* Dispute could reignite tensions between CEO and gov't
SAO PAULO, March 9 (Reuters) - Vale, the world's largest iron ore producer, could be forced to pay up to 3.9 billion reais ($2.4 billion) in back royalties to the Brazilian government, the newspaper Folha de S. Paulo said on Wednesday.
The Mines and Energy Ministry's mining oversight unit claims there are loopholes in the way royalties are calculated and that Vale has paid too little for extracting iron ore from Minas Gerais and Para states, Folha said. It did not say how it obtained the information.
Vale (VALE.N: Quote) (VALE5.SA: Quote) does not agree with the ministry's assessment and says any back royalties would total not more than half of the ministry estimate, Folha said, citing an official who declined to be quoted by name.
No one at Vale's office in Rio de Janeiro was available to comment.
The dispute over royalties has sparked worries among Vale officials that the company's license to explore for the mineral in Carajas, the world's biggest iron ore mine, could be revoked, Folha reported.
Vale Chief Executive Roger Agnelli and Mines and Energy Minister Edison Lobao have discussed the issue in recent days and might meet in Brasilia for talks, Folha added.
The royalties dispute could reignite tensions between Agnelli and the government. According to the accounts of people familiar with the situation, some political leaders sought to push Agnelli out of the CEO job during the administration of former President Luiz Inacio Lula da Silva.
Some of those officials claimed at the time that Vale ought to invest more in industries such as steelmaking and infrastructure, a move that could put Vale at the center of a conflict of interest with its biggest clients -- steelmakers.
President Dilma Rousseff's administration and Congress are considering changes to the mining law, including higher royalty payments and tougher oversight.
Vale is a former state-run company that was privatized in the 1990s, though the government still retains control of the firm's voting shares through the state development bank and state-linked pension funds. ($1 = 1.645 real) (Writing by Guillermo Parra-Bernal and Inae Riveras; editing by John Wallace, sourced Thomson Reuters)
* Dispute could reignite tensions between CEO and gov't
SAO PAULO, March 9 (Reuters) - Vale, the world's largest iron ore producer, could be forced to pay up to 3.9 billion reais ($2.4 billion) in back royalties to the Brazilian government, the newspaper Folha de S. Paulo said on Wednesday.
The Mines and Energy Ministry's mining oversight unit claims there are loopholes in the way royalties are calculated and that Vale has paid too little for extracting iron ore from Minas Gerais and Para states, Folha said. It did not say how it obtained the information.
Vale (VALE.N: Quote) (VALE5.SA: Quote) does not agree with the ministry's assessment and says any back royalties would total not more than half of the ministry estimate, Folha said, citing an official who declined to be quoted by name.
No one at Vale's office in Rio de Janeiro was available to comment.
The dispute over royalties has sparked worries among Vale officials that the company's license to explore for the mineral in Carajas, the world's biggest iron ore mine, could be revoked, Folha reported.
Vale Chief Executive Roger Agnelli and Mines and Energy Minister Edison Lobao have discussed the issue in recent days and might meet in Brasilia for talks, Folha added.
The royalties dispute could reignite tensions between Agnelli and the government. According to the accounts of people familiar with the situation, some political leaders sought to push Agnelli out of the CEO job during the administration of former President Luiz Inacio Lula da Silva.
Some of those officials claimed at the time that Vale ought to invest more in industries such as steelmaking and infrastructure, a move that could put Vale at the center of a conflict of interest with its biggest clients -- steelmakers.
President Dilma Rousseff's administration and Congress are considering changes to the mining law, including higher royalty payments and tougher oversight.
Vale is a former state-run company that was privatized in the 1990s, though the government still retains control of the firm's voting shares through the state development bank and state-linked pension funds. ($1 = 1.645 real) (Writing by Guillermo Parra-Bernal and Inae Riveras; editing by John Wallace, sourced Thomson Reuters)
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