Freeport CEO ‘encouraged’ after talk with Peru’s Castillo

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October 8 (Businesshala) – Freeport-McMoran Inc (FCX.N) Chief Executive Richard Adkerson said on Friday that he was in talks with Peru’s President Pedro Castillo about taxation and corruption in the world’s second-largest copper-producing country. encouraged by.

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Castillo, a Marxist-Leninist party member, took office last summer on a promise to raise mining industry taxes. He has also hinted at nationalizing Peru’s natural gas sector, a major mining industry supplier.

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Edkerson said he and Castillo held a “hearing session” last month as part of the UN General Assembly. While the two did not discuss specific policies, Edkerson said he advised Castillo to fight corruption and also create a tax regime that allows mining companies to remain in the country.

“We are very concerned about the emerging political situation in Peru,” Edkerson said at an FT mining conference. What we are doing is to see if we can find a way to work cooperatively forward. ” “I was encouraged by this initial conversation.”

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Separately, Adkerson said Freeport would halt investment decisions in Chile while that country debates raising copper royalty rates.

Edkerson also said Chinese copper demand remains strong despite recent debt concerns. “I still have great confidence in China’s macroeconomic situation over the long term,” he said.

In the United States, one of Freeport’s key growth areas, Edkerson, said he does not expect President Joe Biden’s administration to prioritize mine development over environmental and social concerns.

Some in the mining industry have encouraged Biden to approve more mines regardless of community objections, but Businesshala reported earlier this year that Biden would rely on allies to supply the EV metal.

“You wouldn’t have a (US) government that steps in and prioritizes metals above these other objectives. It’s all about working together,” Edkerson said.

Reporting by Ernest Scheider Editing by Chris Reese and Nick Ziminsky

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