Mining
From The Report: Peru 2012
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In 2010 Peru was among the world’s top 10 producers of a variety of minerals, among them gold, silver, copper, lead, zinc, tin and mercury. Commodity prices of copper and gold have kept revenues high despite a decline in production over the last several years. Exports increased from $3.2bn in 2000 to $21.7bn in 2010, posting average annual growth of 58% during that period. While the mining industry has had to struggle with issues such as illegal mining, which has caused tremendous damage to the environment, as well as with the negative effects of the sector on indigenous populations, the government is working to strike a balance in development, legislating for consultation with local groups before licensing new projects.

This chapter features interviews with Pedro Martínez Carlevarino, President, National Society of Mining, Petroleum and Energy; and Roque Benavides, Chairman & CEO, CIA De Minas Buenaventura.

Articles from this Chapter

Interview

Professional expertise: OBG talks to Pedro Martínez Carlevarino, President, National Society of Mining, Petroleum and Energy (SNMPE)
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Interview: Pedro Martínez Carlevarino What investments are needed to mitigate any dip in global commodity prices? PEDRO MARTÍNEZ CARLEVARINO: We first need to develop the portfolio of projects to be established over the next 10 years, which involve $52bn of investment. Production in recent years has fallen, so countering decreases in global commodity prices means we need higher levels of production. There are many industries that are complementary to the mining sector and which generate value…

Interview

OBG talks to Roque Benavides, Chairman & CEO, CIA De Minas Buenaventura
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Interview:Roque Benavides What has been the overall reaction of the private sector to the windfall tax proposals? ROQUE BENAVIDES: There were a number of objectives during the negotiations before implementation of the government’s decision to increase tax revenues from the mining industry. Previously companies had to pay a tax on actual sales, the so-called royalty, which negatively affected the value of assets. Therefore, the most important message from the mining industry to the government…

Analysis

All that glitters: Capitalising on sustained high prices for gold and copper
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The exploitation of copper and gold resources has been a key element in Peru’s mineral and indeed broader economic development over the past decade. Together, copper and gold accounted for 76% of all mineral exports in 2011, bringing in revenues of $10.7bn and $10.1bn, respectively, according to the Ministry of Energy and Mines (Ministerio de Energía y Minas, MEM). RANKINGS: Increased production of copper has seen Peru steadily climb the global rankings, moving up six places from its position…

Analysis

Bridging the communication gap: New legislation introduced as part of the effort to settle disputes
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After the second term of former President Alan García saw an estimated 250 social conflicts nationwide, incumbent President Ollanta Humala campaigned on promises of social inclusion programmes funded by an increase in royalties from mining activities, as well as stricter oversight of the sector. Thus far his government has taken significant strides in keeping both of those promises while also striving to reassure the mining community it will be dealt a fair hand. Yet by taking the middle road…