Brazilian government wants more royalties, stake in the miners' output

Brazilian Mines and Energy minister Edison Lobão confirmed in an interview published on Saturday that the government wants a stake in the output of mining companies, but also wants to raise royalties and taxes. The officer said that a tariff at the start of production of every mine is being studied, which would be paid as a share of output once it is producing, apart from the royalties and other taxes.

Lobão also mentioned the government certainly will raise the royalties that mining companies pay. Currently the fee is of about 2%, but the minister considers it too low. Brazil has been attempting to push through Congress a reform of its oil laws, in which the government would also take a share of production in new subsalt oil discoveries and raise its stake in the state-run oil company Petrobras, but it is unlikely it will easily pass – 2010 is an election year so any reforms on sectors such as oil, mining and market regulations is not likely to happen until 2011.