The Brazilian government is reportedly preparing a series of proposed changes for the local mining sector through a provisional measure, which would turn the country’s national department of mineral production (DNPM) into an agency with the power of a regulator. Other changes include taxes companies extracting iron ore should pay to the government.
According to Brazilian newspaper Folha, the provisional measure containing all proposed changes is waiting for approval from the country’s president, Michel Temer.
Additionally, senators and deputies from Minas Gerais and Para, two iron ore producing states, are expected to pressure the Brazilian government to edit the provisional measure regarding the iron ore royalties scheme.
Recently, a media report noted the bill should establish a “flexible” iron ore rate of 2 to 4 percent, depending on international prices for the commodity. Currently, the iron ore royalty rate is 2 percent.