Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Peru’s finance minister said on Thursday that the International Monetary Fund would advise Peru on a tax reform on the mining sector that will capture more revenue in times of high metal prices without affecting competitiveness.
Francke’s remarks are in line with what he told Reuters in an interview in early August when he said higher taxes would be designed to not affect the mining sector’s competitiveness.
Francke said he would unveil more details about the proposal next week when he is scheduled to present the tax reform proposal to Congress.
https://www.mining.com/web/imf-to-advise-peru-on-reform-to-increase-mining-taxes-says-finance-minister/
Wondering if the current price is a good time to invest and bring down my average? Any opinions? Has anyone else invested?
breaktwister, Castillo could be a good thing, increasing tax on miners a bit to help the poor and needy, especially after Covid as we have, without frightening them out which could be good for Peru, and it’s stability, especially if it is a supertax when copper is above $10000. His rival was a really corrupt extreme right winger. So I would say we just have to wait and see whether this is good for Peru and how much it costs us in extra tax, I would have thought the share price had now taken account of that so as said before all depends on if/whether he can change the constitution and how.
Just reading what he said in the interview posted below, is the man a moron? I guess most communists don't actually understand economics or business. In the same interview he says he wants to revive the economy but would also be happy to see corporations walk away. Bonkers.
In March, Castillo gave a local television interview in which he said he wanted “to revive the economy, renegotiate contracts, nationalise Camisea [a gas project], eliminate private pension funds and return money to Peruvian workers”.
He confirmed that as president he would sit down with foreign mining companies to squeeze more money from them, even to the point of driving them from the country.
“I imagine that at the end of the conversation multinationals are going to pack their bags and say ‘you know what? I’m out of here’ and the [Peruvian] people will say ‘that’s fine, you can go because we want companies that come and invest and negotiate with the state’,” Castillo said.
As US-based consultancy Teneo noted, Castillo would come to power “with a shaky mandate?.?.?.?a lack of experience and a tendency to improvise, an uncosted policy programme?.?.?.?a weak position in congress and a radical rival to his leadership within his party”.
Like Castillo’s own journey to the polling station in the first round of the election in April, when he paraded through the streets of Cajamarca on a skittish, bucking horse, it promises to be a rough ride.
There's a gap at 160 from what I can remember. Can't see it going below that IMO but will see how it plays out.
I only see the tax as a risk, he has already walked back the statement regarding nationalisation. There are a lot of mining companies in the area, so it won't be a sole target. I actually heard that some people did well in some Venezuela equities/trades, the local/ground economy is different to the companies position in the wider marketplace.
Finders quite agree on the tax front. The worry is the constitution and whether Peru becomes a Venezuela or a Cuba. That is why the price keep tumbling even though it probably won’t as who wants the risk
Sotolo<< taxation / terms are the only real threat, but as I mentioned companies such as Polymetal have had to deal with changing tax regimes in Russia, and Africa is also notorious for this. At the end of the day, the company has to make a profit to continue as a going concern; so there's only so much the president can do, unless he want's to get a shovel and dig the ground himself.
I think the Castillo proposed change in the constitution is more important than the mining tax, as that will strengthen the power of the president against congress, to do as he wishes. I don’t think Mr Hoc thinks he can do anything in this situation except wait and see as do we.
I read a news article earlier which stated he had already walked back his statement regarding nationalisation of mining, so it is just going to come down to potential taxes. However, this has to work for both mining company and leadership, so I do not believe it will be unworkable; and there is a good chance other wealthy/political leaders within region have investment in mining, so positive lobbying is always a possibility.
I heard someone mention on the BBC news yesterday that actually Peru is the most democratic Country in South America, and I also read that they have a Senate that controls most of the govt. changes and the interesting thing is the majority of that Senate is not loyal to Mr Castillo. So the report said even though there has been a change in the Leader there has not been in the decision makers as the Senate can over rule any proposed changes if they even exist. So the sale of Hochschild if based on pure Politics is over done in my opinion. We should soon have some good production and sales figures coming I have certainly not sold any of my Hoc shares and do not intend to do so. In fact if we continue to drift I will buy some more and see this as a great opportunity.