Concerns over new regulations in the mining industry stem from a package of three presidential decrees issued last month.
Changes related to the renewal of the country's legal framework in the field of mining, suggest a tax increase of 80%, which will lead to high costs, higher research costs and reduced interest from foreign investors.
The Brazilian Mining Association and Vale, which is considered the country's largest miner and world leader in iron ore production, also expressed their concerns.
They believe it will not be possible to cut costs enough to offset the higher fees. “Mining companies are under pressure to channel this new value increase into the industrial production chain,” the statement said. "This new condition will increase the risk of losing competitiveness in the international ore market."
Changes in Brazilian mining legislation could distort the global market
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