Second National Reconcilation Study EITI Peru - unofficial…

Consultancy for the Second National Reconciliation Study of the
Extractive Industries Transparency Initiative (EITI) in Peru (2008 – 2010)
(Continuation)
VII. Breakdown of outcomes of the Second Reconciliation Study regarding distribution
VII.1. Mining Canon
To verify distribution of the mining canon, a new calculation was made for: i) the mining canon
amount resulting from accrued Income tax reported by companies signed-up to the initiative, ii)
distribution of the amount resulting from the mining canon paid by each mining company based on
the methodology described in Section IV. 1 sub-paragraph 2.2 of present report.
Such recalculation has been performed to show the departments that have benefited from the
mining canon for income tax reported by the companies signed up to the Study, for the following
reasons:
- Official information on distribution of the mining canon provided by the Presidential Office of
the Council of Ministers is prepared in aggregate form and not itemizing data for each
mining company in the country.
- This present second Study does not involve all mining companies of the country in
operattion stage, but only the companies signed up to the EITI initiative, which, in most
cases, are the most representative of every mineral that they extract, as shown in Section II,
sub-paragraph 2.1 of this report.
Therefore, it is not possible to reconcile the distributed amounts of mining canon that were
calculated in this Second Study based on the information of the companies signed up to the EITI
initiative for local governments of the departments and the regional governments, and the amounts
officially reported by the Peruvian State.
Consequently, in consistency with the scope defined by the EITI Working Committee, which seeks
to establish whether the resources from production of natural resources by extractive industries
translate into income for the localities in which such natural resources are extracted, this
verification of the mining canon distribution has compared the amounts to be distributed, as
determined based on available information and as provided in the Mining Canon Law, to the official
amounts transferred for mining canon, whereby latter amounts should be higher because they
include revenue from income tax from all mining companies in Peru.
Furthermore, for the purposes of present product 3, we used as data source the Income tax figures
of the companies provided by the company and by SUNAT.
Below we provide the result of recalculating the mining canon distribution for each year under
review: 2008, 2009 and 2010, in Peruvian new soles, for each of the regions in which the mining
units of the mining companies signed up to the Second Study are located. Based on obtained
information on transferred mining canon amounts, comparison can be made of recalculated
amounts to official figures for mining canon funds transferred to each region.
Consultancy for the EITI Peru Multi-Sector Working Committee
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