More news out today, however, it's just a refresher to all of us:
Peru enacts new mining tax to raise $5.5bln
-
Lima, Sep. 29 (ANDINA). Peruvian President Ollanta Humala has passed three new mining laws containing a tax hike aimed at raising $5.5 billion over the next five years to be used for social spending.
The government plans to use the new source of funds, estimated at $1 billion per year at current metals prices, to build roads and schools to fight rural poverty. It says the taxes won't affect the vital sector's competitiveness.
The laws passed Wednesday fulfill a campaign pledge made by Humala before he assumed office two months ago to ensure that the country's poor share in its recent economic success.
"This will allow the state to have more resources to be used primarily for infrastructure in the poorest areas of the country, in order to bring about social inclusion," Humala was quoted as saying by Agence France Press.
The new legislation creates a new mining tax, modifies the law on mineral royalties and establishes a new legal framework for the industry.
The powerful mining sector agreed to the measures in August and Congress passed the laws last week.
"I welcome this responsible attitude that shows Peru is a
place where communities and businesses have a common
perspective of well-being," Humala said.
Humala also said the agreement maintains the competitiveness of Peru and its ability to attract mining investments. "We are giving a clear signal that we respect what they [mining companies] signed and that we are a government of our word."
Mining is central to the Peruvian economy, accounting for some 60 percent of exports. The National Mining Company (SNM) says private firms paid $646 million in royalties last year.
The new laws will remain in effect for the next five years, coinciding with the presidential term of Humala, who had promised to raise taxes on mining profits because of the high price of precious metals.
The Andean nation is one of the world's leading producers of precious metals, notably silver, copper, gold and tin.
