Peru seeks to redraft legal framework for mining industry, minister says By Reuters
[ad_1]
© Reuters. FILEPHOTO: Two men working as miners converse in the middle of a mine shaft, La Rinconada (the Andes), Peru on October 9, 2019. REUTERS/Nacho Doce By Marcelo Rochabrun
LIMA (Reuters) – Peru’s energy and mines minister said on Tuesday the government wants to revise the framework for the country’s mining industry, redrafting the umbrella law that regulates the sector, as well as the legislation that sets royalty payments.
Peru is world number 2. 2 producer. Pedro Castillo (leftist president) wants to raise taxes for mining companies in order fund social programs. But Castillo only provided a few details when he took office in July.
The perceived danger of these changes has caused shares of Peruvian mining companies to fall.
Speaking at the Perumin Conference, Energy and Mines Minister Ivan Merino stated that he would like to reform Peru’s General Mining Law, the law that governs this sector.
He did not say what changes he desired, but he stated that any new mining project should have no adverse effect on local communities.
He also said he wants to change the law that governs mining royalties. These go to Peru’s local governments.
Merino indicated that he would like to allow more freedom in the use of these resources.
Support from Peru’s divided Congress is required for either change. Analysts believe that this will lead to more gridlock than reform.
Merino added that Peru has a pipeline worth $50 billion in mining investments and confirmed (https://www.reuters.com/article/peru-mining-rail/peru-wants-mining-companies-to-help-build-railway-to-pacific-coast-idUSL1N2PW1EU) the government wants to develop a train to transport metals to the coast from the Andes.
Merino also stated that government is keen to see miners focus on social profitability, a notion which several senior executives agreed with.
Rag Udd Americas President for BHP Global (NYSE:) Ltd – which has the Antamina Perumine in Peru – said Peru is in a unique position to take advantage of an increased demand for copper, as more industries look to cut carbon emissions.
However, it is impossible to take this chance as a guarantee. Udd said that this opportunity requires stability and competitiveness.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Trading the financial markets is an extremely risky investment form. Please make sure you are fully aware of all the costs and risks involved.
[ad_2]