Brazil demands to ban the operation of tailings and to increase levies from mines
IBRAM, which represents the interests of Brazilian mining companies, on Wednesday criticized some of the proposals put forward a day earlier by a Senate committee, which for several months investigated the destruction of one of Vale SA's tailings.
In a 400-page report, a Senate commission examining the impact of the January disaster proposed to ban new tailings, phase out all existing tailings dumps over 10 years, and tighten legislation on environmental crimes.
On January 25, in the city of Brumadinho, where the tailings are located, bursting mud-like poisonous streams buried at least 246 people alive.
The Commission also recommended introducing 40 percent royalties on high-yield mines and recommended indicting several Vale executives, including the former CEO and current CFO.
Wilson Brumer, President of IBRAM, of which Vale is affiliated, said that dam and tax proposals should be better substantiated and based on case studies before any implementation.
Senators are punishing the entire mining sector for the mistakes of one company, Brumer said.
“We don't want to ignore what happened, it needs to be investigated. But let's not confuse punishment with taxation, ”he said.
Currently, mining in Brazil is subject to royalties equal to 3.5 percent of gross income.