Peru will hold its second round of elections on June 4 between nationalist candidate Ollanta Humala and former President Alan Garcia, and Murdy said Newmont has to be cognizant.
There has been a lot of political rhetoric. Peru has a long history of mining and it's an important part of its economic growth so we have to pay attention to that," Murdy said, adding that Newmont does have significant investments in Peru but expects to be able to develop and operate those assets with little problem.
The Denver-based company owns the majority of Yanacocha just north of Lima, which accounted for about 43% of Newmont's gold sales during the first quarter of 2006.
Humala's program is clearly the more radical, and includes plans for the state to take ownership stakes in private-sector projects.
Humala Favors Greater State Role
Humala, however, has given special emphasis to the natural resources sector, with its heavy foreign ownership, saying that resource-extraction companies should pay a windfall tax on profits.
His party's governing plan says that strategic activities such as energy, hydrocarbons, and electricity will be at the service of the nation and of Peruvians. "In this strict sense they will be nationalized," the plan says.
