Loading ...Mining companies operating in Brazil are warning the government the recent approval of a bill that hikes royalties for iron ore and gold may end costing the country much more than what it would potentially gain.
In a vote Wednesday, Brazil’s lower house of Congress passed a bill that would increase royalty rates on iron ore by 75% and by 50% for gold, while it would cut those for potassium.
If it becomes a law, it would make iron ore producers pay a 3.5% royalty instead of the current 2%. That amount would be calculated off gross revenue instead of net revenue as is presently done, which would notably increase collections.
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