Andina

Peru: Mining contributed US$11.8 billion in canon and royalties in last decade

09:02 | Lima, Jul. 12.

Mining activity in Peru contributed S/39 billion (about US$11.8 billion) in mining canon and royalties transferred to regions over the last decade, the National Society of Mining, Oil, and Energy (SNMPE) President Manuel Fumagalli has reported.

"Mining has contributed around S/39 billion (about US$11.8 billion) in canon and royalties distributed in regions over the past 10 years, which has to be highlighted," he said.

On the other hand, Fumagalli estimated that mining investment would total US$5.1 billion in 2019, thus revising down his previous forecast of US$6 billion released at the beginning of the current year.

This reduction is explained by a delay in some mining projects, the non-expansion in other deposits, and the constant barriers such as over-regulation and red tape.

Mining exploration

The SNMPE head said a lot of work has to be done in terms of mining exploration, which is the genesis of new projects, thus making them to join the existing portfolio.

In the first five months of the year, he continued, mining exploration saw a 20% fall compared to the same period in 2018.

"There is much work to be done in terms of over-regulation and social conflicts, which also affect exploration," he added.

(END) CNA/RMB/MVB

Published: 7/12/2019
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