Brazil's fixed iron ore royalties rate affects competitiveness, threatens high-cost mines, Vale says
The higher fixed-rate royalty on Brazilian iron ore will affect Vale’s competitiveness - especially at a time of depressed prices - and will compromise the maintenance and operation of high-cost mines, the mining major said on Thursday November 23.
On Wednesday, the Brazilian Congress approved a bill to raise royalties on iron ore to 3.50%
from a previous maximum of 2%. The bill was subsequently sent to Brazilian president Michel Temer for approval.
But under a decree published by the federal government in July, Brazilian royalties - called CFEM...