STEELGURU
New mining office could mean larger stake in royalties for Sao Paulo - Mr Joao Caramez
Edited by : AL CIRCLE
2 min read
BNamericas reported that the new mining office within São Paulo state's energy department will help the state negotiate a larger share in mining royalties.
Mr Joao Caramez state deputy said that under current law, municipalities receive 65% of total royalty payments known locally as the CFEM tax. The federal government receives 12% of mining royalties while 23% goes to states.
Mr Caramez who is also head of the state parliamentary front to support mining said that "With the new agency, São Paulo state will be far more represented in the discussions that are being carried out on a national level regarding the regulatory mining framework which includes the royalties issue and claims for a larger share in their repartition."
The federal government is currently drawing up the final text of the three bills that will establish new rules for prospecting and mining concessions, create a new agency to regulate the mining sector and modify the royalty payment system.
The bills for the new mining legislation were originally expected to be sent to congress last month. However, complications with the creation of the new mining regulator to replace the national minerals production department have delayed the process.
Miners in Brazil currently pay 0.2% to 3% in royalties on net revenues. Bauxite miners pay 3% royalty while coal, among others, pay 2% royalty fee.
Mr Joao Caramez state deputy said that under current law, municipalities receive 65% of total royalty payments known locally as the CFEM tax. The federal government receives 12% of mining royalties while 23% goes to states.
Mr Caramez who is also head of the state parliamentary front to support mining said that "With the new agency, São Paulo state will be far more represented in the discussions that are being carried out on a national level regarding the regulatory mining framework which includes the royalties issue and claims for a larger share in their repartition."
The federal government is currently drawing up the final text of the three bills that will establish new rules for prospecting and mining concessions, create a new agency to regulate the mining sector and modify the royalty payment system.
The bills for the new mining legislation were originally expected to be sent to congress last month. However, complications with the creation of the new mining regulator to replace the national minerals production department have delayed the process.
Miners in Brazil currently pay 0.2% to 3% in royalties on net revenues. Bauxite miners pay 3% royalty while coal, among others, pay 2% royalty fee.
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