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.