Peruvians Love Mining so why are they protesting ?
Some investors avoid Peru due to some bad press regarding mine protesters. Why because Peruvians are tired of being taken advantage of. But can you blame them ? The government has a regulation called canon minero. This rule stipulates that half the income tax derived from mining must be disbursed to the community those activities take place in. But that wasn’t happening. And as you can expect, people protested.
So the protests are geared toward the government, not companies — especially mining companies. Most of the country’s infrastructure — roads, hospitals and bridges — was paid for by mining companies. Right now, 30% of income taxes in Peru come from mining, and 60% of the country’s exports are resource related. And the country’s mining industry has been its major foreign exchange generator for 15 years.
Peru is the world’s second biggest producer of copper and silver and a major producer of gold, zinc, lead,
and other minerals. More recently, Peru’s Minister of Energy and Mines, Jorge Merino, said he expects Peru to attract mining investments worth $10 billion this year… and $53 billion over the next decade.
Put simply, Peruvians love mining. They just want a bigger piece of the pie. But investors can only see the protests. So they’re ignoring one of the most promising mining regions in the world.
Contact the Gateway to South America team to learn about the best investment opportunities in the region. The company is a benchmark for foreign investors wishing to invest in Argentina, Brazil, Chile, Paraguay, Peru and Uruguay, providing expert advice on property acquisition and investment tours.
The Gateway Team – When You are Serious About Property