Large mining profits fall 31% down 6% revenue
Between income tax and royalty, mining companies have accrued to the Treasury a total of $ 748 million, down 35.6% in revenue on the cumulative amount as of the same period in 2013
The results of the first quarter of this year in the mining industry that should pay royalty exhibited a fall of 30.9%. According to the balances reported by different companies to the SVS, industry reported profits of about $ 2,014 million, $ 900 million less than the U.S. $ 2,914 million generated in the period January-March 2013. Among the reasons for the sharp decline in the low profit appears the international price of copper, and a 10.6% increase in cost of sales.
In this context industry revenue fell by 6% compared to the same period last year, from $ 10,765,000 to $ 10,117,000.
Following these lower results, the treasury during the year will receive a smaller contribution from the sector as large mining leads accrued U.S. $ 656.2 million in income tax, 38.6% less compared to the previous year. To this is added, a total of U.S. $ 91.7 million accrued by royalty, with a decrease of 42.2%.
Between the two taxes large mining provisioned in the first quarter of the year to the Treasury a total of $ 748 million compared to U.S. $ 1,161 million in the previous year, ie revenues have fallen 35.6% over the accumulated amount to the same period of 2013.
Among the major mining companies highlights the case of Escondida, company declined 47.3% its profits, after sales fell by 20.4%, while its costs rose by 16.8%. For Codelco, profits fell 28.9% after its revenues fell by 4.5%, up 9.4% cost.
Source: Estrategia
