The Brazilian government’s royalties received from mining companies dropped by 17.7pc in H1 2020, compared to the same period last year, due to a halt in mining operations due to the COVID-19 pandemic.
Brazil received BRL1.71bn ($350,7mn) in mineral royalties in H1 2020, down from BRL2.08 during the same period in 2019, according to the Brazilian Mining Agency (Anm).
Of the total royalties received in H1 2020, about BRL1.2bn comes from companies mining iron ore, down from BRL1.6bn in the same period the prior year, according to Anm data.
In 2019, the South American country reached BRL4.5bn in mineral royalties, up from BRL 3bn in 2018.
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 to Anm.
Brazil Mining Royalty
|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|
Source: Anm- National Mining Agency, Brazil