First advance of mining canon grew by 2.62% this year

The first transfer of 2023 by mining canon to local and regional governments amounted to around S/2,349 million. This figure is 2.62% higher than the amount transferred in January of last year, when a little more S/2,289 million was delivered for the same concept, according to data from the Ministry of Economy and Finance (MEF).

In detail, transfers to regional governments amounted to S/494.6 million. Of this figure, the largest amount of resources was allocated to the regional governments of Ancash with S/139.7 million; Tacna (S/66.9 million); Arequipa (S/62.08 million); Ica (S/43.4 million) and Moquegua (S/38.7 million).

For their part, the regional governments that received fewer items were Huancavelica and Madre de Dios with S/1,425 and S/34,762, respectively.

Distribution in local governments

The advance of the mining canon to local governments reached S/1,854.4 million. Of this amount, S/524.04 million were sent to the municipalities of Ancash, where the province that most benefited was Huari with S/263.1 million, followed by the province of Santa (S/101.3 million) and Huaraz ( S/32.1 million).

Likewise, S/259.9 million were sent to the municipalities of Tacna, where the province of the same name received S/131.6 million and Jorge Basadre S/111 million. Candarave and Tarata received S/4.7 million and S/3.6 million each.

Among the provinces with the most items delivered are those belonging to the Arequipa region, to which S/232.8 million was delivered, distributed as follows: Arequipa (S/ 175.2 million); Caylloma (S/21.2 million), Caravelí (S/ 9.1 million), Camaná (S/ 9 million 028,628), Castilla (S/4.3 million), among others.

Canon would be similar to last year

With the second transfer to be made in July, the mining canon in 2023 will be equal to or greater than that registered last year when it reached a record figure of S/7,844.2 million. This “because in the first half of last year there have still been good mineral prices,” says Epifanio Baca, principal investigator of the Citizen Proposal Group.

In the opinion of the specialist, due to this bonanza, regional and local governments, in order to efficiently take advantage of these resources, should strengthen their management teams to carry out higher quality projects and in a more planned way, designed based on a strategic plan.

“The poor quality of the projects and corruption reduce the impact of these projects in improving people’s living conditions,” he comments.

The specialist adds that although the mining canon is mainly intended to finance road projects and infrastructure for education, health, water and sanitation, and agricultural infrastructure, they should also prioritize projects of a productive nature.

Copper operates under pressure

Copper prices fell on Monday as concerns about demand prospects in China dominated the market ahead of key data from the country’s manufacturing sector, while a weaker dollar lent some support, according to Reuters.

At 17.02 GMT, Benchmark copper on the London Metal Exchange was down 0.7% at $9,197 a tonne. Earlier in the month, copper hit its highest in seven months.

Data

Regional. 25% of the canon goes to regional governments (80% regional government and 20% universities).

Local. 75% of the canon goes to district and/or provincial municipalities where natural resources are exploited.