The Brazilian government will not bow to pressure from states
and municipalities to change terms of a mining bill draft that
will increase royalties and encourage faster development of
reservoirs, a senior official at the mining and energy
ministry's planning department said on Wednesday.
Regional governments, mainly municipalities, want the
federal government to set aside 20 percent of proceeds from
royalties in a compensation fund. But Paulo Ribeiro de Santana,
an official at DPNM, as the department is known, said the
request breaches provisions of Brazil's 1988 Constitution.
Under some of the proposals included in the draft, mining
companies will pay the government as much as 4 percent of gorss
revenues on royalties, up from a current 2 percent of net
revenue. The government expects the bill to be voted on by Oct.