(Reuters) – Freeport McMoRan (NYSE 🙂 Inc Chief Executive Richard Adkerson claimed on Friday that he had been encouraged by a conversation with Peruvian President Pedro Castillo over taxation, corruption and the country’s second largest producer.

Castillo, who is part of the Marxist-Leninist party was elected last summer with promises to raise taxes on mining. Castillo also suggested nationalizing Peru’s mining sector as it is a crucial supplier of the industry.

Adkerson stated that Castillo and he held a “listening room” last month as part of the United Nations General Assembly. Adkerson stated that he had advised Castillo on specific policy issues, but did not mention any details. Adkerson also said that Castillo should fight corruption and create a tax system to allow mining companies to stay in the country.

We are very worried about the current political situation in Peru. Adkerson stated that the group is working together to figure out a way for them to move forward. I was inspired by the initial conversation.

Adkerson stated separately that Freeport would suspend investment decisions for Chile while it debates increasing copper royalty rates.

Adkerson stated that Chinese copper demand continues to be strong in spite of recent debt concerns. He stated that he still believes in China’s long-term macroeconomic condition.

Adkerson expressed concern that the United States is one of Freeport’s largest growth areas and that President Joe Biden will not prioritise mine development over other social and environmental issues.

Biden has been encouraged by some in the mining business to approve additional mines, regardless if objections are raised from community members. However, Reuters reported this year that Biden will rely upon ally countries for EV-metal supplies.

You won’t have the U.S. government that prioritizes metals over all other goals. Adkerson explained that everyone needs to work together.