Brazil’s mining royalties rose by 26.4pc in August to $92.5mn from the prior August despite the impact of the COVID-19 pandemic. The South American country received BRL490.2mn in mineral royalties in August, up from BRL387.8 in August 2019, according to the Brazilian Mining Agency (Anm). In July, mineral royalties were BRL418.8mn, up 13pc from BRL BRN369.4mn in July 2019.
Royalty is charged on net sales or on the sum of direct and indirect expenses, which vary according to the mineral explored (except for oil and natural gas).
The Brazilian steel industry is operating at about 60pc of its production capacity due to the effects of the pandemic. Brazil’s crude steel production increased by 3.5pc to 2.59mn mt in July this year from 2.50mn mt in the same month last year, according to the latest figures from the Brazilian Steel Institute (Aço Brasil).
| Brazil Mining Royalty | |
|---|---|
| Rate | Minerals |
| 3pc | Aluminum ore, manganese, rock salt, and potassium |
| 2pc | iron, fertilizer, coal, other substances |
| 1pc | Gold |
| 0.2pc | Precious stones, faceted colored stones, carbides, and noble metals |