LIMA, Sept 21 (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
Peru is the world's No. 2 copper producer. Leftist President
Pedro Castillo wants to raise taxes on mining companies to fund
social programs, but has offered few details since assuming
office in July.
Shares of Peruvian miners have fallen on the perceived risk
of those changes.
Energy and Mines Minister Ivan Merino, speaking at the
Perumin conference organized by mining corporations, said he
wants to redraft Peru's "General Mining Law," the legal
framework that regulates the sector.
While he did not specify what changes he would like to see,
he said all new mining projects should have a "neutral effect"
on the people, often indigenous communities, who live near
Peru's Andean mines.
He added he also wants to revise the law that regulates the
use of mining royalties, which go to the regional governments
that host Peru's mines.
Merino said he wanted to add flexibility to how those
resources can be used.
Either change requires support from Peru's fragmented
Congress, which analysts say is more likely to lead to gridlock
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.
He also reiterated that the government wants to see miners
focusing on "social profitability," a concept several executives
said they endorsed.
Rag Udd, Americas president for BHP Group Ltd,
which is part owner of the Antamina mine in Peru, said Peru
faces a "historic opportunity" to benefit from increased demand
for copper as industries seek to lower carbon emissions.
"However, this opportunity cannot be taken as certain. It
requires competitiveness and stable policies," Udd added.
(Reporting by Marcelo Rochabrun; Additional reporting by Fabian
Cambero in Santiago; Editing by Aurora Ellis and Peter Cooney)