Analysis of Mining Sector in Honduras

The study notes that in ten years the contribution of mining to the economy was only 1.25% of GDP.

Wednesday, June 25, 2014

From a press release issued by the Central Institute for Fiscal Studies (Icefi):

The study entitled "Assessment of the mining situation in Honduras 2007-2012" highlights the controversial nature of mining in Honduras, which generally comes from: a) conflicts between mining companies and communities; b) low levels of contribution to national and municipal taxes; c) environmental problems; d) human rights violations; d) weak legal framework and one which is favorable to mining companies; e) weakness state institutions which regulate mining activities.

Using the examples of the mines in San Matías in Francisco Morazán and San Andrés in western Honduras, the paper presents the actors and their conflicts. Most of the conflicts are related to environmental degradation, specifically due to contamination of water sources and deforestation. Another key aspect of the conflict is the perception communities have of public institutions as being ineffective and illegitimate channels for mediation. Also, they believe that these institutions are not sufficiently transparent and are biased in favor of mining.

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The General Mining Law, approved in January by the Honduran Congress, became effective upon publication in the official newspaper of the Republic, La Gaceta.

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Panama: Amendments to Mining Code Approved

February 2011

The Panamanian National Assembly approved bill number 277 which amends the Mineral Resources Code.

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