"The state’s challenge is to modernize the mining industry sector ", said Eric Clay, Minister of Energy and Mines in Guatemala.
Diálogo Libre interviewed the Minister of Energy and Mines regarding the reforms to the current mining law, and the interview was published by Prensalibre.com.
A few excerpts from the interview:
The Executive refrained from amending Articles 125 and 242 of the Constitution, which established the right of the state to an involvement of up to 40 percent in mining companies, but the law governing the industry still provides for this. What are the state’s plans?
The mere announcement of the draft constitutional reform in Guatemala so that the State can participate as a partner in mining companies has brought down the shareholder value of Tahoe Resources by 22%.
An article in Elperiodico.com.gt reveals the uncertainty and the damage amonst investors and businesses caused by the announcement of reforms to the Constitution that would include authorization for the State to participate by holding up to 40% of the shares belonging to companies engaged in metal extraction.
Mining companies in Guatemala are opposing the state being able to become their business partner, noting that it may be the prelude to nationalization or confiscation.
Article 125 of the bill to reform the current legal framework for the extractive industries in Guatemala, would enable the state to have participation in companies that exploit natural resources.