Proposed bills to reform Brazil’s iron ore royalty rates are expected to appear before the country’s Congress by either late March or early April; if passed, the bills could be enacted 110 days afterward, according to Brazil’s mines and energy minister.
Brazil is reportedly finishing discussions inside the government to let the bills go before Congress in a timely manner, Fernando Coelho Filho told Reuters in an interview at an industry event in Toronto, Canada.
The minister said the bill is likely to get a smooth passage, because it will boost the funds going to government. The media report noted the bill would establish a flexible iron ore royalty rate of 2 to 4 percent, depending on international prices for the commodity. Currently, the iron ore royalty rate is 2 percent.
Earlier this year, the Brazilian minister told local media the government intended to review the country's mining royalty scheme as part of a wider reform at the sector.
Earlier this year, the Brazilian minister told local media the government intended to review the country's mining royalty scheme as part of a wider reform at the sector.
Additionally, as part of the proposed reforms, the niobium royalty rate will increase to 2 percent from 1 percent, and rates for aggregate will drop to 1.5 percent from 2 percent, the minister said.
Despite not disclosing an exact figure, the Brazilian minister said a portion of the mining royalties should fund the country’s new mining agency.