Vale’s CEO Fabio Schvartsman said Thursday during the company’s earnings call that Brazil’s recently approved iron ore royalty rate is not positive for the industry.
Brazil’s joint Congress committee approved the 2-4 percent iron ore royalty rate tax producers should pay the government, depending on the iron ore prices in the international markets. Most producers are expected to pay 4 percent by default, with a few exceptions that may favor small miners over major companies.
“Vale’s position as well as the industry’s [position] is that [the new rules] are good for nobody,” Schvartsman said, adding that it would be better to have a decreasing rate instead of a fixed rate.