Peru: Michiquillay mining project to boost Cajamarca's economy

Explotación minera. Foto: ANDINA/ archivo.

17:45 | Lima, Feb. 20.

The awarding of Cajamarca-based Michiquillay project will dynamize the economy of said northern Andean region and Peru, Cajamarca Governor Porfirio Medina affirmed today.

"The awarding of Michiquillay mining project might create dynamism in sectors like services, transport, and restaurants, among others," he told Andina news agency. 

As is known, Southern Peru Copper Corporation on Tuesday won said bidding process by presenting a US$400 million transfer price, and higher royalty payments (3%). 

Mining canon

According to Medina, the improvement in mine-related canon —mining tax resources transferred to regions where exploitation takes place— might be seen in eight years, as a result of such venture. 

The Economy and Finance Ministry's (MEF) July 2017 report stated Peru's mining canon —generated in 2016— saw a 24.4% increase compared to 2015. 

Such resources —which were distributed in 2017— reached S/1.862 billion (about US$572.92 million).


Published: 2/20/2018