Mining companies to pay new royalty rates
Following the presidential election where left wing candidate Ollanta Humala promised that mining companies would be asked to pay more to help Peru’s poor through social programmes, the government and mining companies reached an agreement late this week.
According to Mines Minister, Carlos Herrera, the new levy will be applied to operating profits and not sales. The total contribution from the mining companies is likely to be around $1 billion per annum.
Peru is the second largest copper producer and sixth largest gold producer in the world.