Mining companies in Peru to pay an extra $1billion/yr
Ollanta Humala, President-elect of Peru, fulfilled a campaign promise Thursday in announcing his government's intention to hit mining companies with higher royalty taxes.
Humala, who was elected in July, campaigned on a promise to tax mining company profits and distribute them to the poor — a development that had investors and mining company CEOs running for cover in a country that is the world's second largest producer of copper and the sixth biggest gold miner. Companies now pay between 1% and 3% in royalties.