Lima, May 27 - The president of Peru's National Society of Mining, Petroleum and Energy (SNMPE) said on Tuesday that the opposing mining platforms of the two presidential candidates set to contest the June 7 runoff could threaten billions of dollars earmarked for mining projects.
Julia Torreblanca, who leads the SNMPE, told observers that neither candidate's set of proposals "works or is sustainable in the long term." Her comments underscore industry concern as right-wing candidate Keiko Fujimori and left-wing candidate Roberto Sanchez prepare to face voters in a contest that could alter the trajectory of one of Latin America's largest resource economies.
Fujimori's platform includes a plan to distribute 40% of mining royalties directly to communities located near mines and to create a "fast track" mechanism for strategic mining projects. The fast track would be paired with tax incentives intended to encourage companies to reinvest profits into their operations.
By contrast, Sanchez proposes higher taxes and royalties, a review of contracts held by large mining firms, and the pursuit of a referendum to convene a process for drafting a new constitution that would expand the state's role in the economy.
Torreblanca warned that a greater tax burden on the sector could deter investment across planned Peruvian mining projects valued at roughly $63 billion, noting that about 70% of that pipeline consists of copper developments concentrated in the country's southern Andean regions.
Official figures show total mining tax revenue reached about 26 billion soles last year, equivalent to $7.59 billion, a record level driven by elevated gold and copper prices. The government last year distributed the equivalent of $2.93 billion to authorities in mining-affected regions for community development, a transfer funded by income tax and royalties.
Rather than endorse either candidate's proposals, Torreblanca called for strengthening state institutions to ensure mining income is spent effectively. She pointed to more than 2,000 stalled public works projects as evidence that improved public capacity is needed to translate resource revenues into tangible development outcomes.
For currency context, the exchange rate cited is $1 = 3.426 soles.