The Ministry of Energy and Mines (MEM) reported profits of 4,843 million soles ($1,450 million US dollars) in favor of regional governments in 2018. This means a growth of 47%, compared to the previous year.
“These regional governments, which are 26 in Peru, must have mining activity in their territories to have the right to receive a fee”, Sputnik News informed, adding that the three main Peruvian regions that are benefited from these earnings are Áncash, Arequipa and Cusco.
“The mining royalties are equivalent to taxes companies pay the State for having the right to exploit non-renewable resources”, Sputnik News explained.
Mining companies pay each year for the right to operate in Peru, and income from this goes directly to public works for the benefit of the mining communities.