BHP set to detail copper growth plans on Chile roadshow, analysts say
The world's biggest listed miner will be hosting analysts and investors on a roadshow of its Escondida and Spence copper operations from Nov. 17-20.
Peru’s finance minister Pedro Francke said on Thursday a proposed tax reform would increase fiscal coffers by about 12 billion soles ($3.03 billion), or 1.5% of the country’s gross domestic product.
The bulk of the new revenue will come from hiking taxes on the mining sector, although Francke said in a news conference that exactly how much those rates will be increased has not been decided. Peru is the world’s No. 2 copper producer.
“Our studies show that there is room to raise (mining) taxes for those with large operational net incomes,” Francke said, providing details on a tax reform that was unveiled on Wednesday.
The South American nation is working with the International Monetary Fund in order to come up with a proposal that the government in Lima hopes will not affect the sector’s competitiveness.
Peru has one of the lowest tax-to-GDP ratios in Latin America and left-wing President Pedro Castillo has made it a cornerstone of his new administration to raise revenue in order to fund new social programs. Peru’s tax-to-GDP ratio stood at 13% in 2020, according to the finance ministry.
The tax reform proposal still needs to be approved by Congress, which is controlled by the opposition.
($1 = 3.9663 soles)
(By Marco Aquino; Editing by Paul Simao)
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