Brazil prepares changes to mining sector - report

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Monday, March 20, 2017

The Brazilian cabinet chief's office is reportedly fine-tuning a set of measures aimed at improving the country's current regulatory framework for mining.

The changes are expected to be published through a provisional measure after President Michel Temer gives his approval, paper Folha de S. Paulo reported.

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Among the measures being prepared, the government wants to turn minerals production department DNPM into a regulatory agency, in addition to carrying out an overhaul of the country's mining royalties.

According to the report, senators and lower house lawmakers from the country's two most important mining production states, Minas Gerais and Pará, intend to join forces to press the federal government to publish a second provisional measure to address the royalties charged in both states.

Their first meeting between the representatives is set to take place this Wednesday.

A shake-up of royalties, known as the CFEM tax, is being considered under a new mining code that has been nearly seven years in the works.

Reforms have previously considered doubling the percentages of royalties and charging in accordance with gross sales, but the changes have been stalled in congress amid regional debate.

It remains unclear whether the new mining code can be delivered within the two-year tenure of interim President Michel Temer, despite his plans to make Brazil more investor friendly, according to the BNamericas Intelligence Series Outlook 2017.