Abstract

A nation's fiscal system is not just a critical factor in a mining company's assessment of a potential investment, it is also one factor which the host government can change in a relatively short time. For several years Brazil's fiscal regime for mining has been unfavourable and the level of investment has fallen. Recent modest changes to the legal and fiscal regime have resulted in a renewed level of interest from foreign mining companies. Despite this improvement, Brazil's fiscal system has scope for improvement. This paper identifies some of the key issues which could be addressed by Brazil and by other emerging nations which seek to overhaul their protectionist investment regimes to face the challenges of an increasingly competitive world economy.