Minas Buenaventura. Mining giant urges rural infrastructure development

Article - October 17, 2012

Buenaventura (Compañía de Minas Buenaventura, S.A), the largest publicly traded mining company in Peru, is one of the world's major gold and silver producers. Last year, its equity gold production was 1.04 million ounces and total revenues rose 41% to $1.5 billion

PRESIDENT AND CEO ROQUE BENAVIDES GANOZA WANTS MORE RURAL EMPLOYMENT

The company’s shares are quoted on the New York Stock Exchange, where it currently has a market capitalization of over $10 billion.

Mining is a key sector in Peru, accounting for 32% of tax revenues and 70% of exports in 2011. However, the sector’s contribution to Peru’s development has come under scrutiny in recent years, causing the government to adopt a new royalty scheme. In 2010, $1.47 billion of mining taxes and royalties were funnelled into sustainable development programs in the mining regions.

Roque Benavides Ganoza, President and Chief Executive Officer of Minas Buenaventura, agrees that the industry should do more to aid the development, especially in rural areas.

“Mining accounts for about 15% of GDP, but above all, what we export gives us resources to import,” he explains. “Mining in Peru usually takes place in rural areas and we are doing a lot to improve infrastructure in these parts. Peru must develop its natural resources because it contributes to the creation of more infrastructure and jobs in rural areas. It is said that the difference between a developed and a developing country is in infrastructure. We need to develop infrastructure in those areas.”