Pedro Castillo wins a new round of elections in Peru to recommend nationalization of mines

Peruvian presidential candidate Pedro Castillo (Pedro Castillo) has finished first in the second round and has the highest number of votes in the region where the country's main mining project is located.

According to the latest results from ONPE, Castillo won in 10 of the 11 provinces where Peru's largest mining project is located. It is worth mentioning that most of these areas have conflicts related to mining activities.

The government plan advocated by Pedro Castillo proposes that the state take full control of the three important sectors that generate direct wealth, namely, mining, gas and oil.

He said that major deposits in large and medium-sized mining industries, such as Yanacocha,Antamina,Toromocho,Marcona,Cuajone,Quellaveco,Toquepala, must be nationalized and devolved to regional governments according to their jurisdiction, as well as in Camisea gas fields, oil wells, refineries and hydroelectric power plants.

Another proposition is to change the proportion of profits, and Mr Castillo proposes that contracts be renegotiated at the company before these projects are nationalised, requiring profits to be redistributed, 20 per cent to the company and 80 per cent to the state.

What does the process of nationalization mean? Generally speaking, explains economist Marcel Rami í rez, nationalization means that the state becomes the owner of certain companies or production activities. Castillo also pointed out that resources will be nationalized, that is, these resource sectors will no longer be developed by private companies, but will be controlled by companies owned by the state. At present, in the mining industry, if resources are conceded to private parties, they can be freely provided to companies for mining and export, while the only taxes received by the State are corporate taxes, that is, taxes and royalties.