This interview today with José de Echave, one of Peru’s star lefty economists and certain to feature in any government if Castillo wins round two, sheds light on the true position of any hard left government towards its mining industry for the next five years. The whole interview is on-topic and worth your time, the paydirt for capitalists is at the end (translated):
“There are two roads that the country should follow for a better capture of extractive wealth, in particular in the mining sector… …We have to review the mining royalty, which should be raised on the value of production or on sales. This implies the modification of the current law. Then, the application of a windfall tax on excess mining profits is needed. This is a legitimate discussion point and with these two roads, changing the royalty law to apply it to the value of sales, then adding a tax on excess profits, it will allow us to have (the money) we currently need in the present circumstances (of Covid-19).”
So now you know. Don’t expect your mining asset to be snatched away (not in the first year, anyway), because they only want your money. That’s a relief, isn’t it?
Sounds like Chavez redux. Bye bye Peru.
Skonieczny comments on some of the 10 companies he reviewed in his “I Hate Miners!” series. Names you know. scumbags you chastise
https://www.youtube.com/watch?v=PVEL1RaQ7iY
The vultures are just starting to circle above the miners all over the world. Combine that with inflation, and profits dwindle. Miners will never revisit 2011 highs. Time to switch out of miners and into the metal itself.