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Mining Royalties to be Voluntary

The establishment of the royalties paid by mining companies will not be subject to law, but the product of voluntary agreements between the government of Guatemala and those companies.

Wednesday, January 25, 2012

After negotiations with the industry, officials from the Ministry of Energy and Mines signed agreements with mining companies to increase royalty payments.

The agreements are part of the so-called "Framework Agreement for the Implementation of Voluntary Royalties." The royalties will go from the current 1% to 3% or 5%.

For the representative of the Pastoral Social de San Marcos Vinicio Lopez, the measure is inadequate and he "... considers it necessary to pass a law that would have to go through the Congress", reported Siglo21.com.gt

Source: sigloxxi.com

Key entities

Ministerio de Energía y Minas de Guatemala

Countries

Guatemala

Insight

mines royalties mining Metal mining Mining & Geology

Guatemala: Gold, silver mines to pay royalties of 4%

January 2012

The agreement signed by 22 companies in the extractive industry will mean an increase in annual revenues from mining royalties of about $64 million.

Having previously paid 1% in royalties, gold and silver mining companies will pay the Guatemalan state a rate of 4%, said the President Otto Perez Molina.

Minera Panama Will Only Pay 2% Royalty

May 2011

The Canadian company Minera Panama, SA announced that it will only pay a 2% royalty on profits to the Panamanian State.

The official response from the company was given last week, after several months of discussion with the current government, including after bringing up in the reform of the Mineral Resources Code (last February) the possibility of upgrading the royalties from 2% to 4%.

Lack of Investment in Oil in Guatemala

April 2012

At the start of every new government there is an attempt made to attract investors for new drilling and explorations, without results to date.

Despite the efforts of recent governments, in the last decade, domestic production of crude oil has fallen by 55%, going from 24, 671 barrels in the first two months of 2002 to 10,899 barrels in the same period this year.

BacTech Announces Intent of Buying Guatemalan Mine

May 2010

BacTech Gold Corporation signed a letter of intent to by the gold and antimony mine called “San Ildefonso Ixtahuacan”, for $19 million.

This mine started operations in 1969, and is currently operated by “Minas de Guatemala S.A.”, a subsidiary of Caribbean Resources Group Corporation.

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