Vale and mining union abandon lawsuit against increased state mining tax

Thursday, 27 May 2021 21:06:31 (GMT+3)   |   Sao Paulo
       

Brazilian iron ore producer Vale, Vale-owned copper producer Salobo Metais, and mining union Sinferbase have reportedly given up on different lawsuits against the state of Pará, which recently increased its mining state tax, a media report by Valor said. The companies declined to comment.

The state of Pará said it will keep the increased state mining tax, known as TFRM. The tax is expected to increase and might almost triple the state’s tax revenues on mining products, including iron ore, the media report noted.

Last year, the state of Pará raised about BRL 540 million ($102.5 million) with the TFRM tax. With the increased tax, it could now raise as much as BRL 1.5 billion ($285 million).

The Brazilian Institute of Mining, IBRAM, said it was surprised to learn the TFRM tax increased. The tax is paid over the extraction of iron ore, copper, manganese and nickel.


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