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Peru's President Humala Signs Mining Tax‎ into Law

By Joel ScanlonSep 29 2011

President Ollanta Humala of Peru has signed three bills that will in effect raise mining taxes in the country. With this signing on Wednesday Humala fulfills a campaign promise to increase royalties on the lucrative mining sector in Peru.

President Humala said that these resources will be used primarily to fund infrastructure in the poorest parts of the country as a way to bring social inclusion. The tax on profits will help create jobs and finance infrastructure investment such as hospitals, Humala said at the signing ceremony at the Presidential Palace.

Miners who currently pay taxes of 1% of royalties and 3% of sales will now pay between 1 to 12 % royalties on operating profits and a 2 to 8.4% windfall profits tax on net profits. The new President’s team negotiated the rates with the mining companies before sending the bill to Congress this month.

President Humala said that he welcomed this responsible attitude that showed Peru was a place where communities and businesses have a common perspective of well-being. Peru earns the majority of its earnings from the mining sector which is dominated by multinational mining companies. Peru is the third largest producer of copper and zinc in the world and the second largest producer of silver.

Written by

Joel Scanlon

Joel relocated to Australia in 1995 from the United Kingdom and spent five years working in the mining industry as an exploration geotechnician. His role involved utilizing GIS mapping and CAD software. Upon transitioning to the North Coast of NSW, Australia, Joel embarked on a career as a graphic designer at a well-known consultancy firm. Subsequently, he established a successful web services business catering to companies across the eastern seaboard of Australia. It was during this time that he conceived and launched News-Medical.Net. Joel has been an integral part of AZoNetwork since its inception in 2000. Joel possesses a keen interest in exploring the boundaries of technology, comprehending its potential impact on society, and actively engaging with AI-driven solutions and advancements.

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APA
Scanlon, Joel. (2019, March 19). Peru's President Humala Signs Mining Tax‎ into Law. AZoMining. Retrieved on November 22, 2024 from https://www.azomining.com/News.aspx?newsID=5054.
MLA
Scanlon, Joel. "Peru's President Humala Signs Mining Tax‎ into Law". AZoMining. 22 November 2024. <https://www.azomining.com/News.aspx?newsID=5054>.
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Scanlon, Joel. "Peru's President Humala Signs Mining Tax‎ into Law". AZoMining. https://www.azomining.com/News.aspx?newsID=5054. (accessed November 22, 2024).
Harvard
Scanlon, Joel. 2019. Peru's President Humala Signs Mining Tax‎ into Law. AZoMining, viewed 22 November 2024, https://www.azomining.com/News.aspx?newsID=5054.