The trend in increasing mining exports continues unabated
31 March 2006
Peru continues to be heavily mined. With a massive increase recorded in exports between 2004 and 2005, 2006 looks set to further this trend.
The value of Peru's mining exports rose 17% in the first two months of 2006 to US$1.55bn year-on-year, representing 55.9% of the country's total exports (BNAmericas).
Gold exports increased the most, with 42% more exports in January and February than in the same period of 2005. Copper came second with a 20.9% increase on last year, boosted by historically high copper prices.
It remains to be seen what impact the new government will have on mining in Peru, with the two most popular candidates highly polarised on this issue. The front-runner, Ollanta Humala has criticised foreign companies in his campaign speeches and has vowed to increase the low rates of tax they pay. The usual rate is anything downward of 3%, some paying nothing at all, because they are still under contracts from the 1990s when they were allowed to buy state-owned companies.
Lourdes Flores is a free marketeer with a strong business following and plans to honour all contracts to foreign mining companies. She is pro foreign investment and the Free Trade Agreement signed with the US.