Brazil's government is considering a plan that would allow its iron ore royalties program to be more flexible. Currently, Congress has to approve any changes to iron ore royalties, but the new proposal would allow the government to change the rates without legislative approval. If the plan is implemented, the government would be able to raise royalties when prices are high and then cut them in case of economic slowdowns or downturns.
The move is a part of Brazilian plan that would increase the government's interest in one of its most sought-after commodities, iron ore.
SteelOrbis previously reported last month that the Brazilian government planned to double its royalties from the iron ore mining sector in Brazil from 2 to 4 percent.