The Rising Influence of Rising Affluence

[DewDiligence]

VALE and other Brazilian miners oppose new state (as opposed to federal) taxes on natural resources:

http://online.wsj.com/article/SB10001424052702303404704577307672524375822.html

Brazil's major mining associations, representing 90% of the largest mining companies in the country, will take legal action to try to block new taxes on production imposed by Para, Minas Gerais and Amapa states [the three most important mining states in Brazil].

…Mining companies view the new taxes, which are to take effect April 1, as unconstitutional

…Brazil's federal government is preparing to double its own royalty taxes on output of key minerals including iron ore and gold, which will affect large mining companies such as Vale SA, Anglo American PLC, Anglo Gold Ashanti and BHP Billiton PLC.

… Tito Martins, chief financial officer of Vale, which has a strong presence in Minas Gerais and Para [the location of the massive Carajas mine]…noted that previous attempts to introduce such charges had been proven unconstitutional.