INCOME TAXES:

9 Months Ended

Sep. 30, 2020

INCOME TAXES:

INCOME TAXES:

NOTE 5 — INCOME TAXES:

The income tax provision and the effective income tax rate for the nine months of 2020 and 2019 consisted of (in millions):

	2020			2019
Statutory income tax provision	$	694.7		$	648.0
Peruvian royalty		14.1			8.6
Mexican royalty		44.1			47.6
Peruvian special mining tax		31.8			25.8
Total income tax provision	$	784.7		$	730.0
Effective income tax rate		44.4	%		38.2	%

These provisions include income taxes for Peru, Mexico and the United States. The Mexican royalty, the Peruvian royalty and the Peruvian special mining tax are included in the income tax provision. The increase in the 2020 effective income tax rate from the same period in 2019 was primarily attributed to a movement in exchange gains and losses from the devaluation of the Mexican peso and the Peruvian sol against the U.S. dollar.

Peruvian royalty and special mining tax: The Company has accrued $39.7 million and $31.7 million of royalty charge in the nine months of 2020 and 2019, respectively, of which $14.1 million and $8.6 million were included in income taxes in 2020 and 2019, respectively.

The Company has accrued $31.8 million and $25.8 million of special mining tax as part of the income tax provision for the nine months of 2020 and 2019, respectively.

Mexican mining royalty: The Company has accrued $44.1 million and $47.6 million of royalty taxes as part of the income tax provision for the nine months of 2020 and 2019, respectively.

Accounting for uncertainty in income taxes: In the first nine months of 2020, the Company’s uncertain tax positions increased $7.5 million. However, the increase in liability was offset by an increase in deferred tax assets net of the valuation allowance.