Friday, August 21, 2015

Who benefits from Peruvian mining revenues

Telesurtv reported on a conference that happened in the Peruvian Congress earlier this week about the paltry amount of taxes paid by multinational mining companies in Peru. According to presenters at the conference, foreign mining companies make $10 billion in profits each year, but pay just $143 million in taxes, or 1.55% of their profits.

These presenters argued that your average Peruvian working class citizen pays a higher percentage of their wage in income taxes than these mining companies do, meaning that the mining industry cannot be seen as the nation’s main economic engine. Newmont Mining Corporation was help up as an example of a company that has cheated the Peruvian government out of tax revenue.

In other mining-related news, La Republica interviewed Eduardo Gudynas, a researcher with the Latin American Center for Social Ecology. Gudynas refuted the idea of Peru as a mining state. He called this label a “myth,” arguing that Peru’s dependence on exporting raw commodities simply reflects the failure of the state to develop additional economic drivers in the country.


In a long-awaited resolution to the conflict between the Peruvian government and indigenous communities in Loreto over the country’s Block 192 oil field, the government announced that the confederation of 13 indigenous communities would annually receive 0.75% of the value of the field’s production. According to Peruvian Deputy Minister for Intercultural Affairs Patricia Balbuena, this guarantees the communities at least $1.25 million per year.

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