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.