The Peruvian Minister of Energy and Minerals said on Tuesday that the government wanted to revise the framework of the country's mining industry, redraft general regulations governing the industry and set royalties.
Peru is the second largest copper producer in the world. Pedro Castillo (Pedro Castillo), the left-wing president, wants to raise taxes on mining companies to fund social projects, but has provided few details since he took office in July.
Shares of Peruvian miners have also fallen because of these risks.
Speaking at a Peruvian meeting organized by mining companies, Minister of Energy and Minerals Ivan Merino said he hoped to redraft Peru's General Mining Law, which is the legal framework governing the industry.
Although he did not specify what changes he would like to see, he said that all new mining projects should have a "neutral impact" on people living near Peruvian Andean mines, usually indigenous communities.
He added that he also wanted to change the law governing mining royalties, which are owned by the government of the region where the Peruvian mines are located.
Merino says he wants to increase flexibility in the way these resources are used.
Analysts point out that any change would require the support of Peru's fragmented Congress, which is more likely to lead to a stalemate than reform.
Merino added that Peru had a $50 billion mining investment pipeline and confirmed that the government wanted to develop a train to transport metal from the Andes to the coast.
He also reiterated that the government wanted to see miners focus on "social profitability", a concept that several executives said they agreed with.
Lagoude, president of the Americas of BHP Billiton, which is part owner of the Antamina mine in Peru, said Peru faces a "historic opportunity" to benefit from increased copper demand as industry seeks to reduce carbon emissions.
But Ude also pointed out that "this opportunity is uncertain, it needs competitiveness and stable policies."
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