Peru, the world's second largest copper producer, will seek "new agreements" with the most important mining sector by offering incentives for projects that are "socially profitable", Ivan Merino, minister of new energy and mining, said.
In his first interview since becoming minister on Thursday, Merino said mines needed to not only make money for private companies, but also generate tax revenue and should help people by improving infrastructure, respecting indigenous communities and adopting better environmental protections.
Late On Friday, a day after taking office with other cabinet members appointed by leftist President Pedro Castillo, Merino said a new agreement would be reached after talks with all players in the industry, including large, small and medium-sized companies.
Castillo named pedro Frank, a moderate economist, as finance minister late Friday, a move seen as an olive branch to financial markets as the potentially hardline left wavered. Earlier, Mr Castillo named guido Berrito, a hardline Marxist, as prime minister.
Mr Castillo has promised to raise the mining tax to fund more investment in health and education, but Mr Merino said any new taxes would be decided on a company basis. "We can't generalize. You can't tell a company that already has high costs that it's going to have higher taxes.
On MMG Ltd's Las Bambas mine, where the local community has been blocking roads for more than a week, the minister said the government was willing to "facilitate" dialogue. Residents of three communities in Chumbivilcas province began the blockade on July 23, claiming THAT MMG was not sharing enough of the mine's benefits.
Mr Merino believes that companies should invest, and if they meet Peru's criteria for social profit, they will have the full backing of the government.
