The controversial taxes on the distribution of cement and mining royalties fell from $0.65 to $0.19 and from 10% to 1%, respectively.
With the publication of the new values in the official newspaper La Gaceta, an end has been put to the doubts that arose in companies over the fact that it was not clear what were the correct amounts for each tax, after the Constitutional Court declared that the mechanism by which initially the new taxes were set was unconstitutional.
The miners of construction aggregates oppose the increase of 1% to 10% on mining royalties and propose that the tax should be proportional to the volume and type of material extracted.
The Mining Association of Guatemala (AMG) wants royalties to remain at 10% for gold and silver, while for limestone, sand, plaster and other building materials for them to be reduced to 3%, negotiable.
The mining union is opposed to the increase from 1% to 10% for precious metals and the elimination of voluntary royalties to municipalities contemplated in the 2015 budget.
Besides the new tax on the distribution of bags of cement and telephony, increased royalties for the exploitation of minerals and construction materials are also part of the new fiscal package which comes with the 2015 budget.
The Marlin mine in San Marcos generated these revenues during the first half of 2013. "The cost of gold mining in San Marcos is $182 on average and is still the lowest of the 11 companies of which Goldcorp owns or has interests in in the continent," noted an article in Prensalibre.com .
If the existence is confirmed and exploitation made of oil in the Darien, royalties for the state in 20 years could total $20 billion.
The regulations were published today in the official newspaper. According to a study by OTS Latin America LLC in Darien there are reserves of 900 million barrels of oil, therefore within 20 years the country will receive $20 billion in royalties from the $90 billion that could be generated for oil companies .
From the business point of view, a company taking advantage of the poor ethics of public officials, is an unfair practice that must be fought.
Despite the legal prohibition of public officials receiving bribes, gifts or entertainment, some rulers insist on requesting various resources or services in such capacity from private companies, ignoring the obvious conflict of interest generated by this practice.
Royalties on mineral holdings in Guatemala will be imposed on three levels related to the base value of the extracted material.
According to Mario Marroquin, president of the Union of Mining and CEO of the company Montana Exploradora (main extractor of gold and silver in Guatemala), precious metals are those with the highest and there are other lower rates for base metals and non-metallic minerals.
Although the law does not require them to, the two mining companies pay voluntarily royalties of 4% to the Panamanian State.
Both mining companies indicated to Capital Financiero that although there was an amendment to the Code of Mineral Resources in Law 13 of April 3, 2012, their concession contract with the Panamanian state is governed by Law 9 of February 27, 1997 , therefore the changes made to the reform are not applicable to their activity.
The Constitutional Court of Guatemala has received allegations from indigenous groups regarding the constitutionality of the Mining Act which has been in force for 15 years.
Concerns about a possible court ruling in favor of the constitutional motion filed by the indigenous people was demonstrated by the presence of entrepreneurs in the courtroom.
According to an article in Siglo21.com "the first to make their arguments were the proponents of the constitutional motion, via their lawyer Lucia Xiloj, who explained that the mining law, as determined by the CPO, is unconstitutional because it was approved 6 days after the ILO Convention 169 took effect, which stipulates in Article 6 the right to prior and informed consultation. These arguments were refuted by Mario Fuentes Destarac, representing the Chamber of Industry. "
Armstrong Equipment, Inc. is an American based company that specializes in the distribution to Latin America of equipment and parts used in the mining sector, rock crushing and asphalt paving.
Operates in Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama
Phone: (305) 592 8361
Constructora Celaque is a leader when it comes to construction of civil projects and mining in Honduras with more than 15 years of experience.
Operates in Honduras and Honduras
Phone: (504) 2239 6794 - (504) 9905 7845