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Incentives to boost Peru mining exploration underway

Explotación minera. Foto: ANDINA/ archivo.

16:38 | Lima, Mar. 3.

The Peruvian government currently works on a set of incentives to boost mining exploration in the country, Energy and Mines Minister Gonzalo Tamayo revealed.

Remarks were made while addressing Peru's upcoming participation in the Prospectors and Developers Association of Canada (PDAC) 2017 Convention, where a delegation led by Tamayo and Prime Minister Fernando Zavala will promote the Inca nation's geological potential. 

Promotion efforts cover administrative simplification reforms and paperwork reduction for mining exploration, including tax incentives such as Sales Tax refunds.  

"The idea is that this tax does not represent a cost for investors if the exploration is not successful. Clearly, if the venture does succeed, then the tax will be transferred to the processes until resources become projects," he told El Peruano official gazette.

Expectations

On the other hand, the Energy and Mines head affirmed the business environment for mining investments shows better signs as a result of rebounding mineral prices. 

"Zinc records high prices, copper price increased 30% and outlooks for other metals are also positive. So, in short, conditions for mining investment are favorable, and not only in Peru," he observed.   

Nevertheless, the sector expects further declines this year —largely due to lower investments in megaprojects like Las Bambas and Cerro Verde— before bouncing back in 2018.

"We expect a recovery in private capitals next year, driven by projects such as Tia Maria, Pampa de Pongo, Quevalleco and Michiquillay," he concluded.

(END) RGP/DHT/MVB


Published: 3/3/2017
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