According to international media reports, Brazil-based iron ore miner and producer Vale announced on Tuesday that it has received 60 additional days to negotiate with the Brazilian government about unpaid royalties. The Brazilian government and Vale failed to reach an agreement on how much is owed.
On January 27, 2012, SteelOrbis reported that the Brazilian government had stated that Vale owes BRL9.8 billion (US$5.6 billion) in unpaid taxes, but after the decision was handed down Vale filed an appeal. In one of many appeals made by Vale, the company has stated that the Brazilian government cannot tax their subsidiaries in other countries because it violates double taxation treaties. The government has been trying to seek out the taxes on profits made by those subsidiaries during the years of 1994 through 2008.