Brazil hikes mining royalties to ease budget deficit

Brazil's government unveiled a sweeping proposal to change its mining code on Tuesday, which would boost royalties in the latest move to reduce a budget deficit amid a sluggish recovery from the country's worst recession on record. Royalties for iron-ore will rise to as much as 4%, depending on market prices, from 2% currently, according the mining ministry website. The new rules, which will go into effect in November if Congress approves them, include the creation of the National Mining Agency to oversee the mining industry.