Tuesday, 22nd August 2006 (1427 views)

Mining companies operating in Peru are looking to finalise a windfall profits program to pay for social aid in the South American country.

Speaking to MineWeb, a spokesman for gold producer Newmont Mining said he did not know the outcome of the latest meeting on this issue.

According to Peru's energy and mines minister, Juan Valdivia, the proposed voluntary windfall payments would be placed in a trust fund managed by companies, communities and the government, and would be used for social programs.

However, it is not clear whether the payments will be tax deductible, with the government keen to ensure they are not.

The mining companies want to be able to deduct them from taxes and point out that existing social programs in Peru are not tax deductible either.

Peru is the fifth largest producer of gold in the world and also a significant copper producer. Newmont operates the country's Corimayo, Chaquicocha and Conga mines and is committed to supporting local communities.

Its mission statement reads: "By maintaining high standards for protecting human health and the environment, and working in cooperation with our host communities, we endeavour to create sustainable, long-term economic and social opportunities."

 

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