Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
BNAmericas reports by 2016 mining companies will invest around $26.9 billion in mining projects in the Brazilian region know as “Amazonia Legal”.
Brazil mining chamber said projects in Amazonia which encompasses the states of Acre, Amapá, Amazonas, Pará, Rondônia, Roraima, Tocantins, Mato Grosso do Sul and Maranhão include the expansion of Vale’s Carajas mine, copper projects near the town of Parauapebas and a project by Alumina Rondon.
In addition to the large scale projects – the new pit at Carajas called SD11 is a truly gargantuan project that will see the Brazilian giant commit almost $20 billion over the next few years – around 60 small companies are exploring for gold in the provinces.
One of the main obstacles in Amazonia which constitutes just under 60% of Brazilian territory is the lack of infrastructure and almost all projects would require investments in rail, roads and ports bumping up costs in the process.
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Image of river boat in the harbor of Amaturá on the upper Rio Solimoes in Amazonas state by guentermanaus / shutterstock
