Nicola Ware Head of UK Trade & Investment British Embassy [email protected].

Nicola WareNicola Ware

Head of UK Trade & InvestmentHead of UK Trade & Investment

British EmbassyBritish Embassy

LimaLima

[email protected]@fco.gov.uk

www.britemb.org.pewww.britemb.org.pe

• Some figuresSome figures• Some problemsSome problems• What is EITI?What is EITI?• Is EITI important? Why?Is EITI important? Why?• How is Peru doing?How is Peru doing?

Peru, Mining and EITIPeru, Mining and EITI

Some figuresSome figures

Peru: a mining nation – 2005 productionPeru: a mining nation – 2005 production

2005

Production

World

Ranking

Latin America Ranking

Copper (MT) 1,009,898 5 2

Zinc (MT) 1,201,671 3 1

Lead (MT) 319,345 4 1

Gold (oz) 6,903,587 5 1

Silver (oz) 106,072,251 2 2

Tin (MT) 42,145 3 1

Source: Ministry of Energy and Mines

26

15

2629

39

46

05

101520253035404550

2000 2001 2002 2003 2004 2005

Mining means income…share of national corporate Mining means income…share of national corporate income tax %income tax %

Source: SNMPE

Mining means income... Total exports US$bnMining means income... Total exports US$bn

0

2

4

6

8

10

12

14

16

18

'96 '97 '98 '99 '00 '01 '02 '03 '04 '05

TOTAL

MINING

Source: MEM

……and income means growth. GDP growth 1991 – 2005and income means growth. GDP growth 1991 – 2005

90

110

130

150

170

190

210

230

250

270

290

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

Av. Mining GDP growth = 8.6%Av. National GDP growth = 4.2%(1991 = 100)

Source: SNMPE

……and growth means income where it’s neededand growth means income where it’s needed

MINING CANON50% OF IR

FROM MINING

10%DISTRICT

40%DEPARTMENT

25%REGIONAL

GOVERNMENT

25%PROVINCE

INVESTMENT PROJECTS

• Construction of 850 kms of asphalted roadsConstruction of 850 kms of asphalted roads• Maintenance of 1752 kms of roadsMaintenance of 1752 kms of roads• Provision of educational material to 100,000 pupilsProvision of educational material to 100,000 pupils• 764 health campaigns benefiting 300,000 people764 health campaigns benefiting 300,000 people• Training of 8,800 teachersTraining of 8,800 teachers• Installation of 315 km of electricity lines, benefiting 156,000 Installation of 315 km of electricity lines, benefiting 156,000

peoplepeople• Provided temporary employment for 30,000 peopleProvided temporary employment for 30,000 people

Canon Minero – some results (2000 – 2005)Canon Minero – some results (2000 – 2005)

Source: SNMPE

0

200

400

600

800

1000

millions of soles

Mining Canon distribution - Peru

200320042005

Source: SNMPE

0

50

100

150

200

250

300

millions of soles

Cajamarca Tacna Moquegua

Mining Canon distribution - 3 regions

200320042005

Source: SNMPE

Some problemsSome problems

23 de mayo del 2004

10%

12%

12%

12%

13%

14%

14%

14%

15%

16%

20%

20%

21%

21%

23%

29%

37%

38%

49%

0% 10% 20% 30% 40% 50% 60%

Perú

Costa Rica

Ecuador

Brasil

Panamá

Nicaragua

Guatemala

Bolivia

México

Paraguay

Honduras

Colombia

Argentina

América Latina

República Dominicana

ElSalvador

Chile

Venezuela

Uruguay

Trust in public Trust in public sector institutions sector institutions is lower in Peru is lower in Peru than anywhere in than anywhere in Latin AmericaLatin America

LACK OF TRUSTLACK OF TRUST