Brazil increased the royalties received from mining companies by 48.5pc in 2019 despite some of its largest mining companies such as Vale and Gerdau posting losses during the period.
The South American country received BRL4.5bn ($1.02bn) in mineral royalties in 2019, up from BRL3.03bn in 2018, according to data from the Brazilian Mining Agency (Anm).
In 2017, Brazil reached BRL1.83bn in mineral royalties. Looking at 2020, the Latin American country received around BRL413.2mn in royalties during the first two months of the year.
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), according Anm. The chart below explains the mining royalty charged by the Brazilian authorities based on the ore mined in the country:
|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|