This EITI Report covers Peru's extractive sector in 2015 and 2016. It was published in 2018.
Peru is a global leader producer of gold, copper and natural gas. The Peruvian economy has been one of the fastest growing economies in the region during the last decade, with average GDP’s growth of 5.9% and low inflation. As the mining and hydrocarbon sectors develop, the extractive industries contribution to the national economy continues to be significant, accounting for 11.5% of GDP in 2014. Following this strong economic performance, poverty levels were reduced from 55.6% in 2005 to 21.8% in 2015.
Public management of these resources is structurated at the national level, but managment of these money flows in the sub-national level are considered inefficient and prone to corruption. To shed light into these challenges, EITI Peru has published ten years of data, and has started to decentralise EITI implementation. Two regions, Piura and Moquegua, have produced sub-national EITI Reports. More regions are expected to be added in 2017.
The Government regards the mining sector as a "lever to make the leap to industrial development". Most projects are developed in inhospitable places, the sector also contributes to building infrastructure and to employment opportunities for local communities. This model has also generated social conflicts around mining operations. The goal of the EITI in Peru is to improve the public’s understanding of the management of country’s resources and to trust building.
Peru is a leading producer of mineral commodities such as copper (second after Chile), gold (sixth), lead (fourth), molybdenum (fourth), silver (first), tin (third), and zinc (second after China). The country is also a significant producer of oil and gas. Natural gas and condensates are concentrated in the Camisea basin in central Peru.
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.
|Gold||2.110||Metric tons||Peru has 4% of the world's gold reserves.|
|Copper||60.7||Million metric tons|
|Silver||98,869||Metric tons||Peru has 22% of the world's silver reserves.|
|Copper||68,404||Thousand metric tons||Peru has 13% of the world's copper reserves.|
|Iron||1,427,004||Thousand metric tons|
|Molybdenum||3,055||Thousand metric tons|
|Lead||7,038||Thousand metric tons||Peru has 9% of the world's copper reserves.|
|Zinc||29,046||Thousand metric tons||Peru has 7.6% of the world's copper reserves.|
The latest EITI Report (2013) shows that Peru received USD 5.9 billion from the extractive industries. Slightly more than half of these revenues came from hydrocarbons, mainly gas, with the rest from mining, with copper and gold as the major commodities. Revenues were mainly collected through profit taxes (55%) and royalties (37%). Two special mining taxes that were introduced in 2011 represent almost 8% of revenues.
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.
The EITI encourages multi-stakeholder groups to explore innovative approaches to make the EITI more relevant and useful.
Sub-national EITI implementation
In 2015, the regions of Piura and Moquegua piloted EITI implementation. Both regions formed multi-stakeholder groups and commissioned, together with Peru EITI, pilot EITI Reports. These reports feature reconciled transfers from the central government to regions and municipalities and, more crucial to building trust, disclosed information on how these subnational governments have used extractive revenues. The two reports also contained historical data on revenue and expenditures dating back to 2007. These EITI Reports highlighted that, only about 15% of revenues from the mining and hydrocarbon sector have been used for developmental spending, such as infrastructure or economic diversification. The rest has been spent on current expenditures such as salaries and servicing debts. Local citizens are using this information to engage with their regional authorities on alternative ways to spend these resources.
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 2014 EITI Report in June 2016.The EITI subnational pilots, in Piura and Moquegua, have been concluded. The timeliness of data remains a concern in both national and subnational reports. Expansion of the scope of EITI sub-national implementation is expected to increase up to five regions during 2017.
EITI Peru hosted a number of events in the margins of the 7th EITI Global Conference in February 2016.The Ministry of Energy and the Embassy of Canada in Lima launched a Partnership for sustainable mining in Peru. Following the G7 Fast track partnership. This is an effort to bring together all partners supporting good governance efforts in the Peruvian extractive sector. The proposed new partnership could be an opportunity to integrate the EITI with other efforts aimed at improving the management of the natural resources.
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 de la EITI, in Spanish) is chaired by EITI Champion Ing Guillermo Shinno, Vice-Minister of Mines from the Ministry of Energy and Mines and integrated by:
Fernando Castillo - Ministry of Energy, Technical Secretary of the Commission;
Ministry of Finance - Sr Hugo Oropeza - DG Social Management;
Universities: Pacific University - Sr Carlos Casas;
Civil Society: Grupo Propuesta Ciudadana - Sr Epifanio Baca; Derecho, Ambiente y Recursos Naturales - Sra Pilar Camero
Industry - Sociedad de Mineria, Petroleo y Energia - Sra Carmen Mendoza; Sra Caterina Podestá
Industry - Southern Peru Copper Co. - Sr Carlos Aranda; Anglo American- Sr Eduardo Rubio; Repsol - Sr Jorge Luis Mercado
This is Peru's 2016 Annual Progress Report in accordance to requirement 7.4 and 8.4.
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:
This EITI Report covers Peru's extractive sector in 2014. It was published in 2016.
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.
This is Peru's 2015 Annual Progress Report in accordance to requirement 7.4 and 8.4.
This EITI Report covers Peru's extractive sector in 2013. It was published in 2014.
This Peru EITI Secretariat Review was published in January 2012.
This Peru EITI Validation report was published in September 2010.
Г-н Фернандо Торрез Кастильо
Fernando Castillo Torres serves as the General Director of the Social Management Office attached to the Ministry of Energy and Mining. He is an economist and holds a Master’s degree in Political Science with specialisations in Public Policy,