Cerro Verde to open ICSID case against Peru

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Mining Journal | 3 March 2020

Cerro Verde to open ICSID case against Peru

Cerro Verde, a partnership between Freeport McMoran and Buenaventura that operates the Cerro Verde copper mine in Arequipa, Peru, is to bring a case against the government related to a taxation dispute at the World Bank’s International Centre for Settlement of Investment Disputes (ICSID) under a US-Peru trade agreement.

"This arbitration procedure will not affect our current operations. The amounts discussed have been paid, under protest, and are promptly related to past activities. Currently, we operate under a new contract for guarantees and investment promotion measures," said Cerro Verde in a statement.

The dispute with tax agency Sunat relates to a 1998 tax stability agreement the company signed with the government and a long history of disputed taxation amounts originating with the 2006-2008 period.

At the end of 2019, the company paid 711.1 million soles (US$214.4 million) under protest for royalties in this period.

source: Mining Journal