Nicola WareNicola Ware
Head of UK Trade & InvestmentHead of UK Trade & Investment
British EmbassyBritish Embassy
LimaLima
[email protected]@fco.gov.uk
www.britemb.org.pewww.britemb.org.pe
• Some figuresSome figures• Some problemsSome problems• What is EITI?What is EITI?• Is EITI important? Why?Is EITI important? Why?• How is Peru doing?How is Peru doing?
Peru, Mining and EITIPeru, Mining and EITI
Peru: a mining nation – 2005 productionPeru: 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
Gold (oz) 6,903,587 5 1
Silver (oz) 106,072,251 2 2
Tin (MT) 42,145 3 1
Source: Ministry of Energy and Mines
26
15
2629
39
46
05
101520253035404550
2000 2001 2002 2003 2004 2005
Mining means income…share of national corporate Mining means income…share of national corporate income tax %income tax %
Source: SNMPE
Mining means income... Total exports US$bnMining means income... Total exports US$bn
0
2
4
6
8
10
12
14
16
18
'96 '97 '98 '99 '00 '01 '02 '03 '04 '05
TOTAL
MINING
Source: MEM
……and income means growth. GDP growth 1991 – 2005and income means growth. GDP growth 1991 – 2005
90
110
130
150
170
190
210
230
250
270
290
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Av. Mining GDP growth = 8.6%Av. National GDP growth = 4.2%(1991 = 100)
Source: SNMPE
……and growth means income where it’s neededand growth means income where it’s needed
MINING CANON50% OF IR
FROM MINING
10%DISTRICT
40%DEPARTMENT
25%REGIONAL
GOVERNMENT
25%PROVINCE
INVESTMENT PROJECTS
• Construction of 850 kms of asphalted roadsConstruction of 850 kms of asphalted roads• Maintenance of 1752 kms of roadsMaintenance of 1752 kms of roads• Provision of educational material to 100,000 pupilsProvision of educational material to 100,000 pupils• 764 health campaigns benefiting 300,000 people764 health campaigns benefiting 300,000 people• Training of 8,800 teachersTraining of 8,800 teachers• Installation of 315 km of electricity lines, benefiting 156,000 Installation of 315 km of electricity lines, benefiting 156,000
peoplepeople• Provided temporary employment for 30,000 peopleProvided temporary employment for 30,000 people
Canon Minero – some results (2000 – 2005)Canon Minero – some results (2000 – 2005)
Source: SNMPE
0
200
400
600
800
1000
millions of soles
Mining Canon distribution - Peru
200320042005
Source: SNMPE
0
50
100
150
200
250
300
millions of soles
Cajamarca Tacna Moquegua
Mining Canon distribution - 3 regions
200320042005
Source: SNMPE
10%
12%
12%
12%
13%
14%
14%
14%
15%
16%
20%
20%
21%
21%
23%
29%
37%
38%
49%
0% 10% 20% 30% 40% 50% 60%
Perú
Costa Rica
Ecuador
Brasil
Panamá
Nicaragua
Guatemala
Bolivia
México
Paraguay
Honduras
Colombia
Argentina
América Latina
República Dominicana
ElSalvador
Chile
Venezuela
Uruguay
Trust in public Trust in public sector institutions sector institutions is lower in Peru is lower in Peru than anywhere in than anywhere in Latin AmericaLatin America
LACK OF TRUSTLACK OF TRUST