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MEF points to copper “surplus gains” as part of tax reform

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Oscar Grahamhead of the Ministry of Economy and Finance (FEM), announced that will target “excess profits” that the mining companies they have obtained from the increase in world prices of metals such as copper, and thus generate additional taxes.

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According to Reuters, the initiative is much less ambitious than the initial promises of strong tax increases proposed by the former minister. Peter Franckewhich finally encountered resistance from the mining sector and the Congress of the Republic.

“The focus is on excess profits”Oscar Graham commented in an interview with Reuters, adding that the government was analyzing an “adjustment” in taxes.

Peru is the second producer of copper in the world, and prices for it are already trading at near-record levels of around US$10,000 per tonne in the wake of the Russian invasion of Ukraine. In fact, this Friday, April 1, the metal closed at US$10,353.50 on the London Metal Exchange.

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“The margins (of the adjustment) are being evaluated,” the official commented, but added that it was important that the sector not lose competitiveness and that mining investment not be discouraged.

Regarding the mining protests that have shaken the sector and paralyzed production at key mines such as MMG’s Las Bambas and Southern Copper’s Cuajone mine, Graham said that Peru needs a better distribution of mining wealth among communities to quell social conflicts.

“We have to look at the issue of the efficient use of resources provided by mining, otherwise we will have recurring conflicts in the country,” he assured.

Source: Larepublica

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