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)
VIII.1.4 Findings of the Reconciliation Study regarding the materiality levels proposed in the
Terms of Reference of the Second EITI-Peru National Reconciliation Study
Present study shows that the materiality levels proposed in the Terms of Reference with respect to the
domestic production value by subsector have been reached, i.e. over 75% in the case of the mining
subsector (86.94% in 2008, 84.41% in 2009 and 83.42% in 2010) and over 85% in the case of the
hydrocarbon subsector (88.06% in 2008, 89.73 in 2009 and 90.33% in 2010). Furthermore, the
participation of all the companies was achieved, which production exceeds 2% participation in the
domestic production value in the case of mining and oil subsector and 1% in the case of the gas
subsector.
VIII.2 Recommendations
Even though the reconciliation process was successful since the objectives of the Study were achieved,
based on the information provided by public entities and companies, below we indicate some
recommendations intended to increase the efficiency of future reconciliation studies within the frame of the
EITI Peru Study.
VIII.2.1 Recommendations to improve the reconciliation process
Item Remark Recommendation
Validity Right INGEMMET does not monitor title to the mining
claims. This means that some holders may be
prospecting and/ or operating claims without
informing INGEMMET timely. This hinders the
reconciliation Study.
General For purposes of consistency of the reconciliation,
special forms were created to gather information on
each of the items to be reconciled and for each type
of participant in the Study (companies and public
entities). However, such forms were not used by the
public entities in charge of Income Tax, Mining
Royalty and Validity Right.
Consultancy for the EITI Peru Multi-Sector Permanent Working Committee
We recommend implementation by
INGEMMET of monitoring controls and
information cross-checking with the
General Mining Directorate of the
Ministry of Energy and Mines regarding
title of the mining claims (in case of
managing validity right).
For consistency of the information
required, we recommend that the
Working Committee, in future studies,
commits public entities to using the
tools provided by the reconciler to make
reconciling more efficient.
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