Friday, 4th June 2004 (2561 views)

New fees for mining have been introduced in Peru this week, with Congress setting fees ranging from one to three per cent.

Charges will be based on the mining companies' annual sales and will go to towns and provinces where mines are located.

However some are calling for one flat charge of three per cent and have not welcomed the move. The president of the Lima Stock Exchange, Rafael D'Angelo, explained to Bloomberg: "For mining companies, this is a change of rules in the middle of the game. The tax is on gross sales, companies will have to pay it even if they lose money."

Some have argued the costs will hinder investment in gold, copper and zinc mines in the country, an issue since mining is leading the four per cent growth in Peru's economy set to occur this year.

Companies set to have to pay the fees include Cia. de Minas Buenaventura SA, Latin America's biggest gold producer.

Peru is ranked the sixth country for gold production in the world and metal exports make up nearly 70 per cent of the country's exports.

 

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