Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Exclusive-Peru's Castillo expects mining firms to accept 'prudent' tax changes, adviser says

Stock MarketsJul 06, 2021 07:31PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Peru's socialist candidate Pedro Castillo gestures during a debate in Arequipa, Peru May 30, 2021. REUTERS/Sebastian Castaneda/Pool/File Photo

By Marco Aquino

LIMA (Reuters) - Peru's socialist president-in-waiting expects mining firms enjoying high metals prices to be won over to "prudent" plans to hike taxes on mineral resources, a top adviser told Reuters on Tuesday.

In a sign that the gap between the business sector in the world's no. 2 copper producer and the incoming leftist government is closing, Pedro Francke, Castillo's economic adviser, said he expected firms would not oppose a planned review of tax rules after dozens of meetings with businesses.

Castillo is set to be confirmed president after a review of ballots from the June 6 vote. The political novice and former teacher has rattled Peru's elite with plans to redraft the constitution and sharply hike taxes on miners he once said had "plundered" the country's wealth.

But as he has approached power Castillo has moderated his rhetoric, and Francke has also sought to calm market concerns. He told Reuters he had held dozens of virtual meetings in recent weeks with domestic and foreign investors and some business leaders from the mining sector.

"In general, a good dialogue has been established, in which a significant part of the concerns they had have been eliminated, and I think there is a lot of openness," he said by telephone.

"The mining sector isn't close-minded to new revisions of the taxation system, if done with prudence," said Francke, adding those he had talked with saw the plans as "reasonable" given high global metal prices.

Peru's mining chamber was not immediately available to comment.

Francke added that he believed it was important to take care to not "kill" incentives for mining and ensure funds raised were well spent. Castillo has previously talked about hiking taxes as high as 70% on mining profits.

Castillo has also proposed to review contracts with mining companies that lock in tax rates in the longer term. Francke said talks were planned with the firms and any agreement would "strictly depend on the acceptance of these companies."

Peru has such agreements with six mining companies, among them China's MMG Ltd, Aluminum Corp of China, and Anglo American (LON:AAL), which has a Peru copper project set to come online from 2022.

Francke said that Castillo was open to dialogue with business leaders and would respect pledges he had made, including to protect private property and private investment.

Castillo has a lead of some 44,000 votes ahead of right-wing Keiko Fujimori, though the run-off election result has yet to be officially confirmed, with electoral authorities reviewing disputed ballots after challenges by Fujimori.

Exclusive-Peru's Castillo expects mining firms to accept 'prudent' tax changes, adviser says
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email