Mining output in Peru, the world's second-largest copper producer, is likely to fall as Pedro Castillo, the Socialist candidate, emerged as the winner of the presidential election with 99.6 per cent of the vote.
At 6:21 a.m. ET, Castillo had about 50.2 percent of the vote, giving him a lead of about 60,300 votes (0.344%) over conservative rival Keiko Fujimori, who has not yet conceded despite evidence of fraud.
The National Election Commission (JNE) has not been able to declare victory because of a challenge from Mr Fujimori's campaign.
Mr. Fujimori has asked the JNE to cancel the results from 802 polling stations, most of which are in areas that voted for Mr. Castillo. The former teacher and union leader won the support of Fujimori in 16 districts across the country and nine for him.
While Mr. Castillo has vowed to tear up Peru's decades-old constitution, extract as much as 70 percent of profits from mining companies operating in Peru and impose new royalties on mineral sales, analysts aren't too worried.
His campaign has softened its stance on nationalisation, but insists extractive companies are not paying enough taxes. President Castillo will review the tax stabilization agreement, as well as royalties paid by mining and hydrocarbon companies, and may increase them.
Mr. Fujimori's campaign has focused on the country's mineral wealth, with a plan to use 40 percent of taxes paid by miners to pay them directly to mining residents. She has also proposed a "voluntary contribution" system that would allow companies to pay more when commodity prices rise.
Experts say whoever is declared the official winner will face a fragmented legislature made up of 10 different political parties, none of which have a majority. Mr Castillo's Free Peruvian Socialist Party will have the biggest group, followed by Mr Fujimori's conservative party.
Peru saw its worst economic slump in 30 years last year, with growth down 11% and copper production down 12.5% from 2019.
Mining is Peru's main economic engine, accounting for nearly 60 percent of the Andean country's exports.
The copper producer, second only to neighbouring Chile, has 46 mining projects with a potential investment of $56bn.
Peru is also a world leader in the production of silver, gold, zinc and lead.
