Mining revenue in Peru is growing thanks to copper and gold.

In April, tax collection in Peru showed signs of recovery, with a particular sector standing out for its contribution to the treasury: the mining industry. According to Marcial García, a taxation expert at EY-Peru, tax collection from the mining sector increased significantly by 38.2% compared to the same month of the previous year. This increase has been driven by the rising prices of copper and gold in the international market, which has had a positive impact on the state coffers. Mining is a fundamental pillar of the Peruvian economy, and its contribution to the country's total tax revenue reached 11.7% so far this year. This sector, key to national development, has experienced a growth of 1.8% in the first four months of the year, reflecting its importance in generating fiscal income. The high prices of copper and gold have been key factors in this positive performance, highlighting the direct correlation between the price of these metals and tax collection in the mining sector. In the international market, the price of copper has remained at record levels, reaching US$4.67 per pound, while gold is around US$2,883 per ounce, demonstrating the high demand and valuation of these resources. This favorable context has boosted mining revenue in April, and it is expected to continue benefiting regional and local governments through economic transfers. However, despite this recovery in mining revenue, regional and local governments had experienced a 27.1% decrease in transfers during the month of March. This situation was a direct consequence of the decline in mining revenue in the first quarter of the year, which recorded a 6.7% decrease. These data reflect the importance of mining in sustaining public finances at the subnational level. The Ministry of Energy and Mines projects that mining revenue will continue to rise in the coming months, driven by the increase in economic activity at the global and national levels, as well as by favorable prices of copper and gold. Marcial García believes that this increase in metal prices will be reflected in mining revenue in the second half of the year and possibly in 2025, due to tax regularization processes. Miguel Cardozo, director of the Peruvian Institute of Mining Engineers, emphasizes the importance of anticipating a possible deficit in the supply of metals such as copper, necessary for the transition to a more sustainable energy matrix. However, he points out that Peru faces challenges in attracting mining investments, as evidenced by the decline in attractiveness for investments in the sector. Despite the opportunities offered by high metal prices, Cardozo warns that it is crucial to improve the investment climate in the country and streamline processes for the implementation of new mining projects. The lack of progress in the execution of mining projects could have a negative impact on the Peruvian economy in the long term, so it is necessary to implement measures that promote investment and sustainable development in the sector. In conclusion, tax collection in the mining sector has shown signs of recovery in April, driven by international prices of copper and gold. However, it is essential to take measures to strengthen investment attraction and ensure the sustainability of mining activity in Peru, considering its impact on economic growth and the well-being of the population.