Peru, Miners in Pact to Change Royalties
Source: Reuters, Teresa Cespedes and Patricia Velez (8/17/11)
"Under the new system, companies would pay royalties based on operating profits instead of sales, similar to Chile's mining tax structure."
Peru's mining firms have agreed to pay higher royalties in an overhaul of the current system, sources on both sides of negotiations between companies and leftist President Ollanta Humala's government said on Tuesday.
Under the new system, companies would pay royalties based on their operating profits instead of their sales. The new system would be similar to one used in Chile.
The new royalties rates still need to be defined, but they would likely be higher than the current rates of 1%–3% charged on sales, a mining source said. . .View full article