The Rising Influence of Rising Affluence

[DewDiligence]

Here we go again…

http://www.reuters.com/article/2011/06/21/brazil-mining-reform-idUSN1E75K02P20110621

Brazil eyes new tax on big mining projects

…The mining and finance ministries are considering imposing a so-called "special participation" tax on large mining projects similar to one that already exists in the oil sector for high productivity fields, the Folha de S. Paulo newspaper reported, without naming sources.

The proposal would levy the tax on 25 percent of the existing mining concessions, the paper said, including the main projects of Brazil's Vale, the world's largest iron ore miner.

…The special participation tax would be applied to gross revenues from production, and deducted from investments in exploration and operational costs… It would come on top of royalties that mining companies already pay that currently stand at roughly 2 percent of net revenue.