From the above, under a Trial Mining Use Permit (Guia de Utilzacao) this company is permitted to take a maximum rate of 50,000 tons of underground ORE per annum, and this will be taken out in the first quarter next year. It says a Trial Mining Use permit has a 12 month life. Application can be made for a 12 month extension.
Then again, from the above it says a Trial Mining Permit (sic) is renewable up to 36 months. It permits this company to take up to 100,000 tonnes of phosphate bearing material per year.
The response to question 4 of the above also suggests that there is no double-taxation agreement in place with Australia. When you look at the wide range of insidious taxes and fees imposed as stated in this article, it looks like Brazil , like Australia,employs an army of people to constantly think up ideas for more taxes (or fees, duties, imposts. levies, royalties .. all the same thing). I recall seeing a comparison between Brazil and Australia for mining tax burden and they were much the same now, but where Australia was going to draw way ahead was in the recently proposed NEW big taxes.
Also from the above article it can be seen that Brazil is having a revolution (non-shooting type) within its Mines department. Much tightening up, suggestions of royalty increases, and people being required to do something with their ground and not just hold on to it in the hope of flipping it at a profit when metal prices increase. Because new applications were frozen last November and "thousands of claims are waiting for approval at the DNPM" it suggests that any further applications of any sort may face unusually large delays... perhaps.
Anyway, Avanco had better look sharp in terms of doing something Active at least with Antas South to retain their Trial Mining Licence/Permit. Times are toughening at DNPM. Use it or lose it. Also if they need any Exploration permits for recently acquired ground or Environmental permits for anticipated mining they better allow a long lead time and start activity right NOW!
Wish I was going to the AGM.... but hopefully much smarter heads than mine will be there getting into the engine room of this sort of key stuff... and letting us know all about it afterwards.
cheers, PP
AVB Price at posting:
12.0¢ Sentiment: LT Buy Disclosure: Held
