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FILE PHOTO-Trucks from the Las Bambas mine circulate through the mining corridor between Sayhua and Ccapacmarca
By Carolina Pulice
April 8 (Archyde.com) – Peru’s economy is still affected by protests hitting copper mines including MMG’s Las Bambas and Southern Copper Corp’s Cuajone, the agency’s manager of economic studies said on Friday.
“The problems (of production) continue, affecting the evolution of the mining GDP,” said Adrián Armas.
Peru is the world’s second largest producer of copper and mining is a key source of its tax revenue.
The country faces a wave of protests from indigenous communities who accuse mining companies of not providing enough jobs and benefits to impoverished inhabitants.
Las Bambas alone represents about 1% of the Gross Domestic Product and 2% of the world supply of copper.
At a time when it is losing tax revenue while copper prices are near record levels, Peru is also facing high inflation and pressure to subsidize costs that have soared since Russia’s invasion of Ukraine.
On Thursday, the central bank raised its benchmark interest rate to 4.5% from 4%, citing inflationary pressures.
Armas said the bank expected inflation to start slowing from July, reaching its target range of 1%-3% in the second or third quarter of next year.
The country has already eliminated most taxes on gasoline and essential foods, and provided coupons to poor families to buy cooking gas.
(Report by Carolina Pulice Edited in Spanish by Manuel Farías)