Atlas · Mining
Brazil's CFEM mining royalty ranges from 1% to 3.5% by substance, capped at 4%
AnswerUnder Law 13,540/2017, the CFEM rate ranges from 1% to 3.5%: 3.5% on iron ore, 3% on bauxite, manganese, niobium and rock salt, 2% on diamond, 1.5% on gold. The legal cap is 4%.
Reviewed on 2026-10-01 · next review 2027-04-01
Data
| Substance | Rate | Unit | Source | Data date |
|---|---|---|---|---|
| Iron ore | 3.5% | of the calculation base | Law 13,540/2017, Annex | 18/12/2017 |
| Bauxite, manganese, niobium and rock salt | 3% | of the calculation base | Law 13,540/2017, Annex | 18/12/2017 |
| Diamond and other mineral substances | 2% | of the calculation base | Law 13,540/2017, Annex | 18/12/2017 |
| Gold | 1.5% | of the calculation base | Law 13,540/2017, Annex | 18/12/2017 |
| Rock, sand, gravel and similar for immediate use in civil construction; ornamental stone; mineral and thermal waters | 1% | of the calculation base | Law 13,540/2017, Annex | 18/12/2017 |
| Maximum limit for any rate | 4% | of the calculation base | Law 13,540/2017, art. 2 | 18/12/2017 |
Data consulted on 2026-10-01.
Basis
- Law No. 13,540/2017 (Planalto, in Portuguese): rewrites art. 2 of Law No. 8,001/1990; the Annex lists the rates by substance and art. 2 sets the 4% limit.
- ANM, Financial Compensation for Mineral Exploration (FAQ, in Portuguese): published 31/10/2021 and updated 29/05/2022; repeats the rates and explains the value on which CFEM is levied.
How it applies
CFEM is the consideration for the economic use of mineral resources, owed to States, the Federal District, Municipalities and federal bodies. The substance's rate applies to the calculation base, which changes with the triggering event: on a sale, the gross sales revenue minus the taxes levied on it; on own consumption, the gross revenue calculated at the current price of the mineral good; on exports, the revenue calculated on at least the reference price set by the Federal Revenue Service.
Limits
- For iron ore, the Annex allows the sector regulator to cut the 3.5% rate to as low as 2% in an exceptional, justified case, and the cut takes effect only sixty days after publication.
- Other calculation bases (public auction and artisanal mining permit) exist in art. 2 and are not detailed here.
- The 2017 law and the 2022 ANM page are the versions read; later changes must be checked with Planalto and the ANM before any calculation.