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.
The Parliamentary Inquiry Commission (CPI) of the Municipal Chamber of Marabá in the Brazilian state of Pará will meet with Vale executives next Monday to discuss R$400 million ($82 million) that it says the miner failed to pass on to the municipality for the exploration of gold and silver over the last ten years.
The CPI alleges the company did not declare how much gold and silver was extracted from the Salobo mine, saying the miner did not pay financial compensation to the Union, States, Federal District, and Municipalities for the economic use of mineral resources in their respective territories, called CFEM.
“According to our calculation, it is around R$241 million, which when adjusted amounts to R$400 million,” councilor Marcelo Alves said via Ze Dudu.
The councilor and president of the CPI, questioned the non-declaration of the gold from the Salobo project by the mining company.
“It’s been 10 years withholding this information from the city”, Alves said.
The company says it regularly collects taxes and duties, observing state legislation.
“Vale clarifies that the final product from the Sossego (Canaã dos Carajás) and Salobo (Marabá) mines is copper concentrate. CFEM is collected in accordance with the specific legislation on the subject and is based on the pricing of this concentrate, which includes other minerals contained, such as gold and silver,” the miner said in an emailed statement to MINING.com.
“At a recent meeting of the CPI in Marabá, the company demonstrated that the amounts collected already include all the minerals contained in the copper concentrate, with no payment pending,” Vale said.
Comments
Michael James Bue
Need to take a closer look at Vale’s copper concentrate payments for byproducts. If it is being sold to an in-house copper smelter and refinery the byproduct payments could be a “sweet heart” deal for Vale.