Bloomberg News

Vale Said to Win 60 More Days to End 4 Billion-Real Tax Dispute

October 11, 2011

Oct. 11 (Bloomberg) -- Vale SA, the world’s largest iron- ore producer, won an extra 60 days to negotiate an end to a dispute over about 4 billion reais ($2.3 billion) of unpaid taxes, a government official familiar with the talks said.

Brazil’s National Mineral Production Department, or DNPM, will likely end the talks with Vale on the overdue mining royalties in December, said an official at the agency, who asked not to be named because the talks aren’t public. Negotiations started in August and had originally been scheduled to end this week. An official at Rio de Janeiro-based Vale’s press office declined to comment.

Brazil is seeking to tighten its grip over mining after boosting control of the oil industry last year. In addition to claiming overdue levies, the government is preparing a bill to increase mining taxes.

Vale Chief Executive Officer Murilo Ferreira and Energy and Mining Minister Edison Lobao met in August to discuss the overdue royalties dispute. Roger Agnelli was replaced by Ferreira in May amid government criticism that the company didn’t invest enough in steel production and fired too many workers during a 2009 recession in the country.

--Editor: Dale Crofts.

To contact the reporter on this story: Maria Luiza Rabello in Brasilia Newsroom at mrabello@bloomberg.net

To contact the editors responsible for this story: Dale Crofts at dcrofts@bloomberg.net


Reviving Keynes
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus