Peru: Investigation shows US company failed to pay taxes

October 19, 2014

New information was released on October 14 at the Financing Development with Transparency annual conference about the controversial operations of US mining company Newmont.

Journalist Raul Weiner and accountant Juan Torres released their investigation, claiming it proves the US transnational committed tax fraud by not paying the Peruvian state about US$137 million last year alone.

Newmont owns Yanacocha in Peru, a set of five gold mines that make up the second largest gold exploration in the world. The transnational also owns an expansion project called Conga.

Weiner said Newmont artificially increased their cost of production, claiming less profits than they actually made. “Yanacocha has not paid taxes of around US$1.8 billion in 20 years,” he said.

The findings about Yanacocha are of particular importance to Peru. The region where it has been operating for more than 20 years is the poorest in the country. Many do not believe that the company contributes to the development of the region and pollutes their natural resources.

Further, on October 3, social movements organising against abuses by this transnational were able to re-elect their candidate for regional president, Gregorio Santos.

Santos is mow in jail awaiting trail. However, his political party and the local groups that support him for elections believe his jailing without a verdict is proof that the government is conspiring with Yanacocha.

[Abridged from TeleSUR English.]

Like the article? Subscribe to Green Left now! You can also like us on Facebook and follow us on Twitter.

You need Green Left, and we need you!

Green Left is funded by contributions from readers and supporters. Help us reach our funding target.

Make a One-off Donation or choose from one of our Monthly Donation options.

Become a supporter to get the digital edition for $5 per month or the print edition for $10 per month. One-time payment options are available.

You can also call 1800 634 206 to make a donation or to become a supporter. Thank you.