Peruvian mining companies will pay a record PER12bn (U$2.5 bn) in taxes in 2021, triple of what they paid in 2020 during the COVID-19 pandemic.
National Society of Mining, Oil and Energy (SNMPE), the mining industry group representing this sector said in a statement on Aug 10, that miners paid PER4bn in taxes in 2020 when production was affected by pandemic-related restrictions and PER4.8bn in 2019.
These taxes are only expected to rise with SNMPE forecasting an average of PER17 bn per year in taxes for mining companies from 2022 to 2026.
SNMPE members include Compañía de Minas Buenaventura and subsidiaries of Anglo American, Hudbay Minerals, Southern Copper and Barrick Gold.
Peru’s Ministry of Economy Pedro Francke said overall tax revenue in Peru will increase 24pc in 2021 and that he remained confident of taxes not impacting the competitiveness of the private miners operating out of Peru. The mining sector receives the most foreign direct investment in the country, 25pc of the total.
Peruvian mining companies had indicated last week through the country’s Chamber of Commerce that they were open to discussing the new tax regime with the new Peruvian government.