Peru's Congress rejected the government's proposal to hike taxes for the mining sector, dealing a blow to the administration of leftist President Pedro Castillo, who had made increasing mining taxes his flagship plan, Reuters reported Dec. 17.

The copper-rich nation's government had proposed amendments to the tax code that would include an increase in mining taxes. But lawmakers removed any mention of modifying the mining tax regime during committee discussions, and the final text of the tax reform package voted on by Congress did not include mining, the report said.

"Unfortunately the current climate is not the best ... and this government has given the wrong signal to the [mining] sector that is responsible for 60% of our exports," lawmaker Carlos Anderson was quoted as saying.

Peru's finance minister, Pedro Francke, said in a tweet that the government will work with Congress to reach a consensus on items that were not approved.