Brazil’s royalties received from mining activities increased by 9.2pc to BRL3.55bn ($639.1mn) in January-September this year from BRL3.25bn during the same period last year, according to the Brazilian Mining Agency (Anm)
For September alone, the Latin American country earned BRL534.5mn in mineral royalties, up from BRL410.4mn in the same month of 2019, Anm data indicated.
Royalty is charged on net sales or on the sum of direct and indirect expenses, which vary according to the mineral explored (except oil and natural gas).
The Brazilian steel industry is operating at about 60pc of its production capacity due to the effects of the COVID-19 pandemic. The country’s crude steel output increased by 6.5pc to 2.70mn mt in August, from 2.53mn mt in the same month last year, according to the latest World Steel Association data.
Here’s a break up of the royalty rates depending on the mineral mined in Brazil:
Brazil Mining Royalty
|3pc||Aluminum ore, manganese, rock salt, and potassium|
|2pc||iron, fertilizer, coal, other substances|
|0.2pc||Precious stones, faceted colored stones, carbides, and noble metals|
Source: Brazilian Mining Agency