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)
VII.2. Mining Royalty
To verify distribution of mining royalty, distribution of the amount paid for mining royalty has been
recalculated using the methology described in Section IV. 2 sub-paragraph 2.2 of this report.
Such recalculation has been performed to show the departments that have benefited from the mining
royalty from the companies signed up to the Study, due to the following:
− Official information on distribution of the mining royalty provided by the Presidential Office of the
Council of Ministers is prepared in aggregate form and not itemizing data for each company.
− This Study does not involve all mining companies of the country in operation phase, but only the
mining companies signed up to the EITI initiative, which, in most cases, are the most
representative of every mineral that they extract, as shown in Sectio II, sub-paragraph 2.1 of this
report.
Consequently, it is not possible to reconcile mining royalty amounts distributed by department as
determined in present 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.
Therefore, in consistency with the defined scope of 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 royalty
distribution has compared the amounts to be distributed, as determined based on available information
and as provided in the Mining Royalty Law, to the official amounts transferred by the Peruvian State.
Below we provide the result of recalculating the mining royalty distribution for each year, in Peruvian New
Soles, for each of the regions in which the mining units of the mining companies signed up to the Study
are located, as well as the comparison of such results to the official figures for mining royalty funds
transferred to each region.
Furthermore, and because distribution of mining royalties is made in terms of monthly amounts collected,
regardless of the period in which such royalties were generated, the following tables provide the
recalculation of mining royalty distribution as of the date of distribution thereof.
Consultancy for the EITI Peru Multi-Sector Permanent Working Committee
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