FOUR years after Brazil’s government said it was planning a radical rewrite of mining laws, on June 18th the industry, which accounts for 4% of GDP and almost a quarter of exports, finally learned its fate. Maximum royalties on mineral wealth are to rise from 2% to 4%, with iron ore and gold probably attracting the top rate, and will be levied on turnover rather than profit. Future licences will come with minimum-investment conditions and licensing will be simplified.

The announcement was met with resignation by mining firms, which had been braced for worse. The government had been keen to squeeze the sector until it squealed, but falling commodity prices and a deteriorating trade balance seem to have made it moderate its plans. A feared new federal levy did not materialise. The only surprise was that the proposals came in the form of a draft bill to be approved by Congress, rather than presidential decree. Approval will probably take the rest of the year. But there was relief that an end to the wait, which has played havoc with business plans, is in sight.