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Social Conflicts: Peru Halts S$800M Tax Collection, SNMPE

The mining sector has lost billions of dollars in exports. | Font: Andean

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According to the latest report Ombudsmanas of November of this year there were 218 social conflicts, this prevented collection SGD 800 million taxesaccording to National Society of Mining, Petroleum and Energy (SNMP).

According to Raoul Jacob, president of SNMPE, a million dollar loss taxes This is due to the inability of the central government to negotiate, whose main duty is to resolve conflicts from their first phase.

“We are very concerned that social conflict is not decreasing and that they (the authorities) need time to react. We have a new cabinet, and we hope that they will help find a peaceful solution to the problems,” he stressed.

What conflicts have paralyzed investment in the mining industry?

According to former Vice Minister of Mines Guillermo Shinno, the most crippling conflicts this year took place in the mines of Las Bambas and Cuahon.

“The problem lies in the social conflicts that interfere with the positive perception of Peru and delay investment. The projects that exist in the country are left out,” he told Perú21. The country has a portfolio of 43 projects in this sector worth US$53.168 million.

These conflicts have led to a decline production some metals such as copper, which is recoverable; even if he registers only a 3% advance.

Meanwhile, the production of gold, zinc, silver, lead and moldibene continues to decline.

As expected

These are not the only consequences, the union warned about a drop in investment of about $200 million and this is due to the lack of projects under construction, the dynamics of which has stalled since the mining company began operations. kualaveko.

What investments are expected for this 2023?

Raul Jakob explained that no major investments are expected next year, except for purchases related to the renewal of the truck fleet or a new plant to make better use of infrastructure, but they will not new operations.

In addition to taxes, up to October of this year alone, the export of minerals was lost by 1 billion US dollars.

Source: RPP

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