Brazil's mining royalties hit record high

Brazil’s income from mining royalties, known as the CFEM tax, rose 69% to a record 10.3bn reais (US$2.13bn) in 2021 thanks to high iron ore prices and exports, according to the mines and energy ministry.

Around 85% of the CFEM collected last year came from iron ore mining, followed by 4% from gold and 3% from copper.

The mining sector posted a trade surplus of US$41.2bn in 2021, up from US$28.6bn in 2020. Iron ore accounted for 88.3% of mining exports.

The following mining companies paid the most:

1. Mining giant Vale paid 5.70bn reais, or 55.4% of the total.

2. MBR, a company controlled by Vale with assets for production, transport and shipping integrated into Vale's southern system, paid 705mn reais or 6.9% of the total.

3. Anglo American Brasil paid 668mn reais, or 6.5% of the total.

4. CSN Mineração, a subsidiary of steel producer CSN, paid 630mn reais, or 6.1% of the total.

5. Mineração Usiminas – a joint venture between Brazilian steelmaker Usiminas and Sumitomo Corporation – paid 181mn reais, 1.8% of the total.