Brazil's new mining code may finally leave paper in 2018. The so-called Novo Marco Regulatório da Mineração is set to be forwarded to Congress for voting by the end of April , according to Fernando Coelho Filho, Brazil’s Mines and Power Ministry. The proposal intends to increase the current royalty charge for iron ore producers from 2% over net revenue to between 2% and 4% over gross revenue. Based on a 62% Fe fines FOB price of US$46/wet tonne for 2018, our analysis indicate that this change can potentially bring between US$150 million and US$570 million of additional revenue to the local government next year. In the worst case scenario (4% royalty over gross revenue), companies such as Vale and CSN will see their total cash costs increasing by approximately 8% (to US$15/wet tonne) and 5.5% (to US$22.8/wet tonne), respectively.