Andina

Peru: Mining investment surpasses US$63 billion over last 20 years

09:09 | Lima, Aug. 28.

Mining investment in Peru increased significantly over the last two decades, surpassing US$63 billion, while it accounted for 16% of private investments during the last 10 years, privately-run National Society of Mining, Oil, and Energy (SNMPE) has informed.

According to the Peruvian Institute of Economy (IPE), mining companies' tax burden in Peru reached 47%, a higher rate than the current ones in other countries such as Australia, Canada, and Chile. 

Likewise, SNMPE President Manuel Fumagalli underlined the mining sector is one of the main contributors to the Inca nation's economy

Furthermore, he indicated the above-mentioned sphere contributed 20% of the collection of companies' income tax, royalties, and other special taxes over the last decade (2009-2018), a period in which it paid at least S/85 billion (around US$25 billion) in taxes and other charges. 

Contribution to GDP 

Moreover, the SNMPE representative informed the mining activity represents 9% of national GDP, and its contributions have helped closing social gaps in Peru. 

"The development of this productive sector, which is decentralized, has also enabled regional governments and municipalities to receive more than S/38 billion (US$11.24 billion) in canon and royalties over the last 10 years," he added. 

Fumagalli pointed out the mining activity acquires 13% of what is produced by the national manufacturing sector and that mining companies have invested at least S/4 billion (US$1.183 billion) in social projects during the last decade.

(END) DTK/MVB

Published: 8/28/2019