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Peru presidential candidates' mining plans cast doubt on investment, industry leader says
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By Marco Aquino LIMA, May 27 (Reuters) - The president of Peru's National Society of Mining, Petroleum and Energy (SNMPE), on Tuesday warned that opposing mining policies from the two presidential candidates heading into the June 7 runoff vote may jeopardize billions of dollars in investment. Julia Torreblance, SNMPE president told Reuters that neither candidate's proposals for the mining industry are sustainable. • Right-wing candidate Keiko Fujimori and left-wing candidate Roberto Sanchez prepare to face off in a vote that could reshape the outlook for one of Latin America's most important resource economies. • Torreblanca said neither candidate's proposal "works or is sustainable in the long term." • Fujimori proposes distributing 40% of mining royalties directly to communities near mines and creating a "fast track" for strategic mining projects with tax incentives for reinvesting profits. • Sanchez has proposed raising taxes and royalties, reviewing large mining companies' contracts, and seeking a referendum to draft a new constitution to expand the state's role in the economy. • Torreblanca said a higher tax burden could deter investment in Peruvian mining projects totaling some $63 billion, 70% of which is in copper projects in the country's southern Andean regions. • Total mining tax revenue reached approximately 26 billion soles ($7.59 billion) last year, a record high driven by elevated gold and copper prices, according to official data. • Last year, the government transferred the equivalent of $2.93 billion to authorities in mining-affected regions for community development from income tax and royalties, official data showed. • Torreblanca called instead for strengthening the state to ensure mining revenues are spent efficiently, citing more than 2,000 stalled public works projects. ($1= 3.426 soles) (Reporting by Marco Aquino, Editing by Iñigo Alexander)