Guatemala: Obstacles to Mining Investment

Businessmen are complaining that there are over one hundred applications for licenses which have been approved by the Attorney but are pending review and approval by the Ministry of Energy and Mines.

Monday, February 23, 2015

Mining companies in Guatemala say that one of the reasons for the delays in the process for obtaining mining exploration licenses is because the government does not support this sector of the economy.

Regina de Cerezo, manager of Corporate Relations at Compañía Guatemalteca de Níquel S.A (CGN) (CGN), told Prensalibre.com that "... 'The role of the Ministry of Energy and Mines is to review and award licenses. The fact that there is a backlog of over a hundred licenses is illegal, because a de facto moratorium is illegal.'"

"... According to the Directorate General of Mines, they are not holding back any license applications and all of them are undergoing the necessary formalities. They indicated that in this office there are steps that can take years. Miguel Angel Balcárcel Commissioner for National Dialogue, said '... You can not fail to recognize the conflicts generated by mining, which is why a bill has been sent to Congress for a moratorium, to reflect and re-discuss the Mining Act, but is stagnating. '"

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Mining Case to Emerge Internationally

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The Guatemalan Nickel Company announced that it will go to the Inter-American Court of Human Rights to request precautionary measures in response to the local authorities' decision to suspend operations at the Fénix mine in Izabal.

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The temporary suspension of the exploitation right license of the Fénix mining company, operated by Compañía Guatemalteca de Níquel, in the department of Izabal, is reported.

After a group of neighbors claimed before the Supreme Court of Justice that for the mining project concerned, the community consultation process was not exhausted, in February of this year an injunction was granted in favor of the plaintiffs, but the company's operations were not suspended.

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The Mining Exploitation Project Niquegua Montufar II, run by Compañía Guatemalteca de Níquel, and the one called Tajmulco II, by Montana Exploradora de Guatemala, have been suspended by the government.

A statement issued by the Ministry of Energy and Mines indicates that "...Adhering to the appeal granted by the First Chamber of the Court of Appeals of the Civil and Commercial Branch constituted in the Court of Appeal, the Ministry of Energy and Mines (MEM), notified Compañía Guatemalteca de Níquel (CGN), of the suspension of its authorization license for operating the mining exploitation project Niquegua Montufar II. "

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An operating license for the Niquelgua Montufar II mine was awarded in April 2013 to a subsidiary of Solway Group, Compañía Guatemalteca de Níquel, in which the Guatemalan state has a 1.8% stake.

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