Brazil ready to double iron ore royalty but boost fertilizer production
Brazil is offering a carrot to encourage domestic production of fertilizer while at the same time, reaching a little deeper into the pockets of iron ore miners.
A Mining Ministry official from the South American powerhouse said Thursday that Brazil plans to boost taxes on iron ore while cutting the levy on fertilizers as part of a plan to overhaul mining regulations, Bloomberg reported:
The government is studying a plan to double the royalty on iron ore to 4 percent of gross revenue from 2 percent of net sales now, Claudio Scliar, the ministry’s secretary for geology and mining, said today in an interview. The levy on fertilizers may be reduced from 3 percent to prompt producers to increase domestic output of the crop nutrients, he said, declining to specify the size of the cut.