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FACTBOX-Peru mining firms' profits and royalty payments
August 25, 2011 / 4:55 PM / 6 years ago

FACTBOX-Peru mining firms' profits and royalty payments

 LIMA, Aug 25 (Reuters) - Peru has reached an agreement with mining companies to increase their contributions toward the state to 3 billion soles (about $1 billion) a year, fulfilling a key campaign promise by leftist President Ollanta Humala. [ID:nN1E77O0WQ]
 The government did not immediately provide details on the new royalties rate or tax scheme, however.
 Mining and government sources said earlier this month the two sides had agreed to apply royalties on companies’ operating profits, rather than sales. [ID:nN1E77F1YC]
 Below are key facts about Peru’s mining sector:
 MINING ROYALTIES COLLECTED
 YEAR                AMOUNT
 2010                $646 MLN
 2009                $338 MLN
 2008                $455 MLN
 2007                $526 MLN
 PERUVIAN MINERS’ NET PROFITS
 MINER                 JAN-JUNE 2011      PCT VARIATION
                                         VS PREVIOUS YEAR
 Southern Copper          $1.40 bln            -9.6
 Buenaventura             $1.16 bln            53.4
 Barrick                  $775  mln           -37.5
 Shougang Hierro Peru     $755  mln           389.2
 Cerro Verde              $711  mln            87.6
 Minsur                   $532  mln             1.9
 Volcan                   $531  mln            50.1
 Gold Fields La Cima      $341  mln            98.1
 Milpo                    $290  mln            58.4
 El Brocal                $116  mln           122.9
 KEY METALS PRODUCTION (2010)
 METAL               TOTAL                PCT VARIATION
                                        VS PREVIOUS YEAR
 COPPER             1.25 mln tonnes             -2.28
 ZINC               1.47 mln tonnes              -2.8
 TIN                33,848 tonnes               -9.75
 GOLD               163.4 mln grams            -11.19
 SILVER             3.64 mln kilograms          -7.27
 - Mining sector accounts for 60 percent of Peru’s export revenue.
 - Global miners include Xstrata XTA.L, BHP Billiton (BHP.AX)(BLT.L), U.S.-based Newmont (NEM.N) and Gold Fields (GFIJ.J).
 - Some $41 billion are earmarked for Peruvian mining projects in the next 10 years.
 - In July, Buenaventura and Newmont announced they would pour $4.8 billion into the Conga gold and copper mine, the largest mining investment ever announced in Peru.  (Reporting by Patricia Velez; Editing by Marguerita Choy)   

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