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

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Oct 8 (Reuters) – Freeport-McMoRan Inc (FCX.N) Chief Executive Richard Adkerson mentioned on Friday he was inspired by a current dialog with Peruvian President Pedro Castillo about taxation and corruption on the earth’s second-largest copper producing nation.

Castillo, a member of a Marxist-Leninist celebration, swept into workplace final summer time on guarantees to extend mining trade taxes. He has additionally hinted at nationalizing Peru’s pure fuel sector, a key mining trade provider.

Adkerson mentioned he and Castillo held a “listening session” as a part of final month’s United Nations General Assembly. While the 2 didn’t focus on particular insurance policies, Adkerson mentioned he suggested Castillo to battle corruption and likewise craft a tax regime that permits mining corporations to stay within the nation.

“We’re very concerned about the political situation that’s emerged in Peru. What we are doing is to see if we can find a way to work forward cooperatively,” Adkerson advised an FT mining convention. “I was encouraged by this initial conversation.”

Separately, Adkerson mentioned Freeport would pause funding selections in Chile whereas that nation debates elevating copper royalty charges.

Adkerson additionally mentioned Chinese copper demand stays robust regardless of current debt considerations. “I still have a lot of confidence in China’s macroeconomic situation for the long term,” he mentioned.

In the United States, considered one of Freeport’s main development areas, Adkerson mentioned he doesn’t anticipate President Joe Biden’s administration to prioritize mine growth over environmental and social considerations.

Some within the mining trade have inspired Biden to approve extra mines, no matter group objections, however Reuters reported earlier this 12 months that Biden will depend on ally international locations for EV metallic provides.

“You’re not going to have a (U.S.) government that steps in and puts a priority for metals above these other objectives. It’s all got to be worked out together,” Adkerson mentioned.

Reporting by Ernest Scheyder
Editing by Chris Reese and Nick Zieminski

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Freeport-McMoran CEO, Richard Adkerson poses for a picture during an interview with Reuters at the CRU's World Copper Conference in Santiago, Chile  April 9, 2019. REUTERS/Rodrigo Garrido

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