Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
Peruvian presidential election front-runner, socialist Pedro Castillo, said on Saturday he would, if elected, review contracts with foreign miners in the copper-rich country and seal a deal for Russia’s Sputnik V vaccine.
Castillo leads in the polls ahead of a run-off vote on June 6 against right-wing opponent Keiko Fujimori, in a polarized election that could move the Andean nation sharply to the left, a trend that has rattled markets and worried miners.
The teacher, who normally sports a wide-brimmed hat and has struck a chord with Peru’s less affluent voters, wants to rewrite the country’s Constitution to weaken the business elite and give the state a more dominant role in the economy.
Castillo said foreign firms had “plundered” the country and that if elected president, he would ensure that 70% of profits would remain in Peru.
Castillo said foreign firms had “plundered” the country and that if elected president, he would ensure that 70% of profits would remain in Peru
“We are going to review the contracts. Enough looting of my people,” he said in a debate with Fujimori, 45, in a public square in the mountainous Cajamarca region, referring to gas projects and metals mining.
Castillo, 51, has pledged to redirect more mineral wealth to the Peruvian people, though moved to ease investor fears last month by saying he would not nationalize industries
Amid a sharp surge in covid-19 cases and a slow vaccine roll-out, Castillo also said he had recently met with the Russian ambassador and had a deal for 20 million doses of Russia’s Sputnik V vaccine.
Fujimori, a free-market proponent and daughter of ex-President Alberto Fujimori who is in jail for human rights abuses and corruption, also pledged to distribute the country’s mineral wealth more evenly to the Peruvian people and to provide vaccines.
“We are in contact with all the laboratories in the world to make vaccinating all Peruvians a reality this year,” she said.
(By Marco Aquino; Editing by Adam Jourdan and Cynthia Osterman)
4 Comments
Robert
Dear Senor Castillo,
You could always mine it yourself (except you can’t). But by all means follow the example of the great Hugo Chavez: the man who singlehandedly killed the Golden Goose (Crystallex) before it got to lay its first golden egg.
Matthew
Terrific idea……is this because it worked out so well in Venezuela.? Get your people on their knees and then start rigging elections. And exchange that sombrero for a dunce hat.
Randolph
Why do these politicians make these threats to get elected? Do they think the corporations will stay or keep investing in the country. Not likely, how is socialism working for Venezuela. Ya, it’s not.
Roberto Jimenez
It is different than Venezuela- it is a matter of local people wealth and basic services / a social problem for remote areas where most of the mineral resources are – Peru has a very centralised structure- where Lima enjoy the wealth of the country (for a few) and the regions (rich of mineral resources) are left abandoned and not signs of prosperity- and on top of that – in their regions (irresponsible mining companies) leave pollution and waste – and in some cases – using the little water they have or affecting their environment