Brazil must speed up procedures for
obtaining mining permits to compensate for any increase in
mining royalties under its new mining code, Vale SA president
Murilo Ferreira said, according to local media
"The emphasis of the
regulatory framework on the fiscal aspect causes concern.
However, any measure that simplifies and accelerates the
process (of obtaining permits) is welcome," Ferreira told
Brazilian official news agency Agência Brasil.
"The mining sector
share in Brazilian GDP (4 percent) is too low in comparison to
other countries," he added.
According to the new
mining code proposed by Brazilian president Dilma Vana Rousseff
and mines and energy minister Edison Lobão this week,
the Brazilian royaltiesfinancial compensation for
exploiting mineral resources, or CFEMwould be calculated
taking gross revenue as a reference instead of adjusted
Proposed aliquots are
set to vary from 0.5 to 4 percent, up from the current 0.2 to 3
Royalties to be paid
for each ore are to be defined by a national decree.
The framework proposes
to substitute the current mining code and will be subject to
the approval of the Brazilian congress.
government considered increasing mining royalties up to 6
percent in addition to charging an extra rate for iron ore
producers, according to information from a local newspaper.
This idea was subsequently discarded.
Brazil needs to
modernize its mining laws, "but imposing new costs to the
sector creates a great concern,"Marcos Ramos, president for
Latin America and the Caribbean at Pittsburgh-based miner Alcoa
Inc., was quoted as saying in the report.
A version of this
article was first published by AMM sister publication Metal