Brazil’s government has unveiled a new mining bill to revamp the country’s 46-year old mining laws, proposing the creation of a government agency to regulate mining activities and raising royalties to up to 4% - double the present rate.

As per the long-awaited mining bill, which will be sent to Congress for approval, the CFEM tax on mineral production has to be paid on gross revenue, against the current law which charges the tax on net revenue.

Brazil’s President Dilma Rousseff said that the proposed changes to the mining laws will benefit the budget of states and municipalities that host mining activities.

The proposed legislation will set up minimum investment levels and simplify the bidding process. It also It is expected to establish an auction system for certain mining rights with concessions of 40 years, renewable for 20 years.

Brazil is considered as one of the largest producers of iron, gold, bauxite, nickel, manganese and other minerals worldwide.