Peru

Statut ITIE Progrès significatifs
Joined EITI in 2007
Dernières données de 2016
Site Internet EITI Peru
Last updated 20 December 2018

Overview

During 2015 and 2016 the extractive industries contribution to the national economy continues to be significant, accounting for between 12% and 13% of GDP. Rapid expansion of the oil, gas and mining sectors in Peru has yielded almost 50 billion USD in government revenues within 13 years, between 2004 and 2016. According to the 2015-2016 EITI Report, Peru is the second largest producer of copper in the world and this production has more than doubled in the past two years. This has helped the government achieve important improvements in social and development indicators and enhanced economic growth and stability. Poverty levels were reduced from 42.4% in 2007 to 20.7% in 2016. For more economic and social indicators, see World Bank's data on Peru.

However, the negative impacts of the extractive industries are a major challenge. The report discloses the number of social conflicts in 2015 (1,385) and 2016 (1,383) and reveals that more than 80% of total environmental/social conflicts were related to the mining sector. The report provides a link (Social Conflicts) to reports by the Ombudsman Office, including further details of active and social conflicts.

In this context, Peru is using the EITI process to address key community concerns. For the first time, the 2015-2016 EITI Report provides extensive reporting on social and environmental issues.EITI Perú also has ambitious plans to provide more detail on the distribution and use of extractive industry revenues by regional and local authorities. For this purpose, the EITI process was recently established in the region of Apurímac, which accounts for around 20% of the copper produced in the country. Along with Moquegua, Piura and Arequipa, this is the fourth region to adopt an EITI process, with the goal to improve transparency and accountability in the use of the revenues flowing from the mining activity to the regions, municipalities and universities. EITI Peru is now exploring and proposing a deeper analysis of revenue management related to selected investment projects within the regions. This represents a key opportunity to build trust and dialogue in conflict-prone settings.

10 years of EITI reporting in Peru
Access Peru's 2015-2016 EITI Report
Piura (Peru) Sub-national EITI Report 2012-2013
Moquegua (Peru) Sub-national EITI Report 2012-2013
Arequipa (Peru) established a MSG in 2017
"EITI helps us in building trust with our people. Now we need to disseminate all this information”
Angela Grossheim, Minister of Energy and Mines

News, blogs and more

Tax and legal framework

The four main taxes and fees imposed on companies operating in the extractive sector, all of them paid to the central government, include corporate income tax, royalties, special mining tax (IEM for its Spanish acronym) and special mining burden (GEM for its Spanish acronym). The National Superintendence of Customs and Tax Administrations (SUNAT) is the main body responsible for collecting, and managing these four revenue streams. Other taxes/fees are collected by the hydrocarbons regulator PeruPetro and the cadastre office (Ingemmet). Hydrocarbons contracts are disclosed by PeruPetro. Awarded concessions are routinely published by Ingemmet.

In 2001, Peru established a law called “canon minero”, whereby 50% of corporate income tax collected from mining projects is to be distributed to the regions and municipalities hosting the project. This represented more than USD 550 million in 2017. Regional and local authorities must allocate these resources to finance public investment projects providing universal access to public services and generating benefits for the community.

Country Licenses

  • Mining concessions are awarded and administered by Ingemmet. The procedures for requesting a mining concession are explained here.
  • Hydrocarbon concessions are awarded and administered by PeruPetro. The bidding procedures are explained here.
Peru Petro statistics
Cadastre office (Ingemmet) annual report 2016
EITI Piura has opened doors for us to engage in truly informed dialogue with our regional government on the use of the money received from our hydrocarbons.
Francisco Cordova Sanchez, CSO activist in Piura

Production

Peru is a leading producer of mineral commodities ranking second in copper, silver and zinc production worldwide. In Latin America, Peru ranks first in gold, zinc and lead production. Oil production has been declining since 2007. Natural gas and condensates are concentrated in the Camisea basin in central Peru.

 

Mining production
Hydrocarbon production: Oil
Hydrocarbon production: Gas

Natural resources

Peru has rich deposits of copper, gold, silver, lead, zinc, natural gas and petroleum. Abundant mineral resources are found mainly in the mountainous areas. It is considered one of the top ten richest mineral countries in the world. The following chart shows reserves as of 2016:

Commodity

Reserves (proven and probable)

Unit
Oil402,324Thousand Million barrels
Liquified Natural Gas240,518Thousand Million barrels
Gold2,400Thousand metric tons
Copper81,000Thousand metric tons
Silver120Metric tons
Iron *1,403,189Thousand metric tons
Molybdenum450Thousand metric tons
Lead6,300Thousand metric tons
Zinc25,000Thousand metric tons

*Data from 2015

Source: 2015-2016 EITI Report

Ministry of Energy Statistics Bulletin for 2018

Oil and Gas production (in Sm3 o.e.)

Initializing chart.

Mineral Production (Tonnes)

Initializing chart.

Revenue collection

The latest EITI Report (2015-2016) shows that Peru received USD 2,290 million and USD 2,280 million from the extractive industries in 2015 and 2016, respectively. Slightly more than half of these revenues came from corporate income tax, as shown in the graph below:

Initializing chart.

Receiving government entities

Revenue allocation

Regional and municipal governments receive, via transfers from the central government, around half of the Peruvian state’s revenues from the extractive industries. The other half is allocated to the national budget. There are a number of online tools with information about the national budget including Execution of funds and National budget systems.

Innovations

The EITI encourages multi-stakeholder groups to explore innovative approaches to make the EITI more relevant and useful. See below the highlights as of 2018, which are further described in the Overview above:

  • The 2015-2016 EITI Report included, for first time, social an environmental aspects.
  • The last report included a description of roles and general information on State-owned enterprises acting in the oil and gas sector.
  • In 2018, the region of Apurimac established a new EITI process.
  • With four regions already implementing the EITI, the national multi-stakeholder group is now exploring and proposing a deeper analysis of revenue management related to selected investment projects within the regions.

 

Implementation

Peru was found to have achieved meaningful progress in implementing the EITI Standard. View more information under the Validation section of this page or go to the Board's decision in full. Previously, the country was compliant under the 2011 Rules.

Peru has produced a roadmap for the disclosure of the beneficial owners as per EITI Requirement 2.5 ahead of the deadline of 31st December 2016. Peru published its 2015-2016 EITI Report in February 2018. 

EITI Peru hosted the 7th EITI Global Conference in February 2016.

Governance

On 12 May 2006, the Government of Peru published an Executive Decree that created an EITI Working Group which represents the entire stakeholder’s constituency, and provides a legal basis to the implementation of EITI. The mandate of this working group was renewed by Presidential Decree 5 September 2008. In 2011, the EITI working group was given permanent status by Decree No.28-2011-EM of 11 June.

The EITI National Committee (called Comision Multisectorial Permanente del EITI, in Spanish) is chaired by EITI Champion Ricardo Labó, Vice-Minister of Mines from the Ministry of Energy and Mines and integrated by:

Technical Secretariat: Fernando Castillo - Ministry of Energy and Mines
Government: Hugo Oropeza - Ministry of Finance DG Social Management
Civil Society - Universities: Ana Sabogal - Pontificia Universidad Católica del Perú
Civil Society - NGOs: Epifanio Baca - Grupo Propuesta Ciudadana; and Vanessa Cueto - Derecho, Ambiente y Recursos Naturales (DAR)
Industry - Association: Carmen Mendoza and Julio Luján - Sociedad Nacional de Mineria, Petroleo y Energia 
Industry - Companies: Carlos Aranda - Southern Peru Copper Co.; Eduardo Rubio - Anglo American; and Jorge Luis Mercado - Repsol

Timeline

Validation

Peru was found to have made meaningful progress in meeting the EITI Standard on 11 January 2017. The country needs to take corrective actions on a number of requirements and will be validated again on 1 July 2018 (Second Validation) according to an extension requested and granted by the Board on 13 February 2018.

Peru's progress by requirement can be found in the scorecard below. 

Board decision in full
News item on the Validation result
Country statuses explained
Documentation: Validation Report and initial assessment

Peru's progress by requirement

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EITI Reports and other key documents

Validation Peru 2016 - documentation

Published Date: 
January, 2017
Publisher: 
EITI

Peru's Validation commenced on 1 July 2016.  On January 11 2017, the EITI Board found that Peru has made meaningful progress in implementing the 2016 EITI Standard. 

The following documentation laid the basis for the Board's decision, attached below:

Initial data collection by the International Secretariat [English] and [Spanish]MSG Comments on the initial data collection and stakeholder consultation [

En savoir plus

Peru Work Plan 2016-2018

Published Date: 
May, 2016
Publisher: 
Peru EITI

This is Peru's work plan, which was submitted by the EITI Peru national secretariat. The work plan includes the objectives and priorities for EITI implementation and associated activities. 

The EITI Standard Requirement 1.5 e) requires countries to make it available to the public.

En savoir plus

2013 Peru EITI Report

Published Date: 
December, 2014
Publisher: 
Peru EITI

This EITI Report covers Peru's extractive sector in 2013. It was published in 2014. 

En savoir plus
View all documents related to Peru in our publications library

Contacts

National Coordinator

M. Fernando CASTILLO TORRES

Coordonnateur National

Fernando Castillo Torres occupe le poste de Directeur général au Bureau de la gestion des affaires sociales attaché au Ministère de l'Énergie et des Mines. Il est économiste de formation et diplômé de l'Université Pontificia Universidad Católica del Per

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International Secretariat

Santiago J. Dondo

sjdondo
Regional Director
SDondo@eiti.org

Santiago J. Dondo is an expert in law and public policy related to the extractive industries. He is the Regional Director for Latin America and the Caribbean at the EITI.

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