Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Bolsa de valores de Sao Paulo  >  Vale SA    VALE5   BRVALEACNPA3

VALE SA (VALE5)

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

Brazil's CNI Set To File Court Action Against New State Mining Taxes

share with twitter share with LinkedIn share with facebook
share via e-mail
0
03/19/2012 | 11:46pm CET

RIO DE JANEIRO (Dow Jones) -- Brazil's National Industry Confederation CNI is likely to file high court action in coming days arguing that mineral "policing" charges planned by the Brazilian states of Minas Gerais, Para and Amapa run counter to the country's constitution, a CNI spokesman said Monday.

The CNI's tax and mining committees have recommended that the confederation file a complaint with Brazil's Supreme Federal Court, or STF, that the planned new taxes, due to come into force April 1, are unconstitutional, the CNI spokesman said.

"CNI's president is going to take a decision on whether to file the case," the spokesman said.

Cost pressures on mining companies are escalating as national and local governments worldwide attempt to reap benefits from high commodities prices. Legislative assemblies in Minas Gerais and Para, Brazil's two biggest mining states, together with Amapa, which is growing in importance as a gold and iron ore producer, recently passed laws allowing the states to charge up to up to 6.90 Brazilian reais ($3.83) in tax per metric ton on mineral products including bauxite and iron ore, to help allow "policing" or checking of how mineral resources are exploited in the state.

The planned state-level charges are unconstitutional as mineral resources in the Brazilian subsoil belong to the federal state, which already charges royalties on companies' ore sales, part of which are channeled back to the states for use in social improvements, according to mining companies linked to the CNI. Mining companies operate deposits via concessions granted by federal government.

"Production of lower value minerals, such as bauxite and industrial minerals for building, will become unviable with the new state-level charges," the CNI spokesman said. It is incorrect to base a "policing" or "control" tax on the market prices for minerals, as would apparently occur with the new state-level taxes, he said.

The planned new charges would hit major mining companies including Vale SA (VALE, VALE5.BR), Companhia Siderurgica Nacional SA (CSNA3.BR, SID), MMX Mineracao e Metalicos SA (MMXM3.BR), Votorantim Group, Anglo American PLC (AAUKY), Anglo Gold Ashanti, Alcoa (AA) and BHP Billiton PLC (BHP).

Minas Gerais state tax officials told Dow Jones Newswires in early March that Brazil's constitution gives the states the right to police, monitor and check mineral reserves and exploitation in their territories.

The new tax in Minas Gerais aims to cover the cost of environmental-recovery programs in mining areas and encourage local industrial development, as the tax will not be charged on minerals that are processed into other products within the state, the state's officials said.

-By Diana Kinch, Dow Jones Newswires; 55 21 2586 6086; diana.kinch@dowjones.com

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on VALE SA
07:39aDJBHP Billiton, Vale, JV Reach Preliminary Agreement With Brazil Prosecutors Re..
01:06a VALE : 01/18/2017 Vale announces dates for reporting of 4Q16 performance
01/13 VALE : 01/13/2017 Vale pays interest on infrastructure debentures
01/13 VALE : announces the sale of fertilizers assets
2016 MOSAIC : Fertilizer giants agree to $2.5B acquisition
2016 NORSK HYDRO : Acquires Remaining 13.63% Stake in Mineracao from Vale
2016 VALE : 12/20/2016 Vale CEO comments on fertilizers transaction
2016 Vale to allow use of its pit for Samarco tailings
2016 VALE : 12/20/2016 Vale about agreement with BHP and Samarco regarding the use of..
2016DJIsrael Arrests Diamond Magnate -- WSJ
More news
Sector news : Steel - NEC
01/18 TATA STEEL : UK financier makes new offer to take over Tata Steel pension scheme
01/17DJFortescue Metals Names Elizabeth Gaines as CFO
01/13 TATA STEEL : in talks to cut its UK pension scheme benefits - Trustees
01/09 B COM PORTUGUES : Millennium approves capital hike of up to 1.33 billion euros
2016 TATA MOTORS : Battle lines forming for Tata legal showdown
More sector news : Steel - NEC
News from SeekingAlpha
01/18 REPORT : Vale's top shareholders weigh unifying stock structure
01/11 Brazil reverses losses after larger-than-hoped rate cut
01/10 Industrial metals stocks surge after China cuts capacity
01/06 VALE : Recovering From Crash
01/05 Nailing Brazil - Twice
Advertisement
Financials ($)
Sales 2016 29 176 M
EBIT 2016 6 580 M
Net income 2016 5 003 M
Debt 2016 26 768 M
Yield 2016 0,38%
P/E ratio 2016 9,37
P/E ratio 2017 13,95
EV / Sales 2016 2,66x
EV / Sales 2017 2,42x
Capitalization 50 753 M
More Financials
Chart VALE SA
Duration : Period :
Vale SA Technical Analysis Chart | VALE5 | BRVALEACNPA3 | 4-Traders
Full-screen chart
Technical analysis trends VALE SA
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 11
Average target price 7,68 $
Spread / Average Target -16%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Murilo Pinto de Oliveira Ferreira Chief Executive Officer
Gueitiro Matsuo Genso Chairman
Luciano Siani Pires Chief Financial Officer
Oscar Augusto de Camargo Filho Director
Luciano Galvão Coutinho Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
VALE SA22.58%50 753
ARCELORMITTAL10.39%25 435
NIPPON STEEL & SUMITOM..2.85%22 267
NUCOR CORPORATION4.81%19 867
POSCO--.--%19 861
THYSSENKRUPP AG6.03%14 457
More Results