Download Douglas Barnes

Nicola Ware
Head of UK Trade & Investment
British Embassy
Lima
[email protected]
www.britemb.org.pe
Peru, Mining and EITI
• Some figures
• Some problems
• What is EITI?
• Is EITI important? Why?
• How is Peru doing?
Some figures
Peru: a mining nation – 2005 production
2005
Production
World
Ranking
Latin America
Ranking
Copper (MT)
1,009,898
5
2
Zinc (MT)
1,201,671
3
1
Lead (MT)
319,345
4
1
6,903,587
5
1
106,072,251
2
2
42,145
3
1
Gold (oz)
Silver (oz)
Tin (MT)
Source: Ministry of Energy and Mines
Mining means income…share of national corporate
income tax %
50
45
40
35
30
25
20
15
10
5
0
46
39
29
26
26
15
2000
2001
Source: SNMPE
2002
2003
2004
2005
Mining means income... Total exports US$bn
18
16
14
TOTAL
12
MINING
10
8
6
4
2
0
'96
'97
Source: MEM
'98
'99
'00
'01
'02
'03
'04
'05
…and income means growth. GDP growth 1991 – 2005
290
270
Av. Mining GDP growth = 8.6%
Av. National GDP growth = 4.2%
(1991 = 100)
250
230
210
190
170
150
130
110
Source: SNMPE
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
90
…and growth means income where it’s needed
MINING CANON
50% OF IR
FROM MINING
10%
DISTRICT
25%
PROVINCE
40%
DEPARTMENT
INVESTMENT PROJECTS
25%
REGIONAL
GOVERNMENT
Canon Minero – some results (2000 – 2005)
• Construction of 850 kms of asphalted roads
• Maintenance of 1752 kms of roads
• Provision of educational material to 100,000 pupils
• 764 health campaigns benefiting 300,000 people
• Training of 8,800 teachers
• Installation of 315 km of electricity lines, benefiting 156,000 people
• Provided temporary employment for 30,000 people
Source: SNMPE
Mining Canon distribution - Peru
1000
800
2003
2004
2005
600
millions of soles
400
200
0
Source: SNMPE
Mining Canon distribution - 3 regions
300
250
200
2003
2004
2005
millions of soles 150
100
50
0
Cajamarca
Source: SNMPE
Tacna
Moquegua
Some problems
23 de mayo del 2004
Uruguay
49%
Venezuela
38%
Chile
37%
ElSalvador
29%
23%
República Dominicana
América Latina
21%
Argentina
21%
Colombia
20%
Honduras
20%
Paraguay
LACK OF TRUST
16%
México
15%
Bolivia
14%
Guatemala
14%
Nicaragua
14%
Panamá
Trust in public
sector institutions
is lower in Peru
than anywhere in
Latin America
13%
Brasil
12%
Ecuador
12%
Costa Rica
12%
10%
Perú
0%
10%
20%
30%
40%
50%
60%