Brazilian newspaper O Estado De S. Paulo reported Tuesday that Brazil's southeast state Minas Gerais, a major iron ore mining hub in Brazil, is planning to institute a new tax on iron ore.
The tax will only apply to iron ore that is extracted in Minas Gerais but processed in other states, as approximately 80 percent of iron ore produced in Minas Gerais is processed elsewhere, according to the report. Such a tax is expected to increase the government's revenue on iron ore by R$400 million (US$222 million).