The Brazilian government’s royalties received from mining companies increased by 14pc in the first quarter of 2020, despite a gradual halt of operations by some mining companies in March due to the COVID-19 pandemic.
The South American country received BRL1bn ($190.6mn) in mineral royalties in Q1 2020, up from BRL876.6mn in corresponding 2019 quarter, according to data from the Brazilian Mining Agency (Anm).
In 2019, Brazil reached BRL4.5bn in mineral royalties, up from BRL 3bn in 2018, Anm data indicated.
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. The rate charged for various minerals is below:
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