Thriving companies from the banking mining, sugar, rubber, call center, and palm oil sectors, have been the engines of the Guatemalan economy over the last 10 years.
Tuesday, October 9, 2012
An article in Elperiodico.com.gt reviews the characteristics of each of these sectors and the major players in each.
"At the beginning of this century, Guatemala had 34 banks that managed assets of about $5 billion. More than a decade later, banking has consolidated and expanded regionally, leaving 18 banks that up to last August managed more than $23 billion. Domestic banks have become modernized and compete with state banks of Costa Rica to be the largest in Central America. "
"Exports of precious metals reached U.S. $941.6 million in 2011, up 79.8 percent from the $523.7 million in 2010, making it the country’s third export product and 9 percent of total sales in the country, according Banguat statistics. In addition to Goldcorp, which has launched other projects such as Cerro Blanco in Jutiapa or Chocoyos and Assumption, other mining companies have rushed to invest in Guatemala. "
"Since Guatemala sent the first shipment of sugar to the United States in the early 1960s, the domestic sugar industry has continued to grow at an annual rate of 11 percent over the past 20 years, ranking as the fourth largest exporter in the world and the second in America after Brazil, the largest producer and exporter. "
According to a recent study, companies that carry out mining activities in the country, operate with a profit margin of 22% before paying taxes.
The report prepared by Central American Business Intelligence (CABI), details that companies in the mining industry operating in Guatemala can achieve extraction costs of up to 55%.
In the first six months of 2012 FDI amounted to $770 million, mainly devoted to the activities of energy, mining and textile industries.
In the first quarter FDI reached $405.9 million and $364.6 million in the second, surpassing the $523.5 million in the first half of last year, according to data from the Bank of Guatemala (Banguat).
Construction of the silver mine, el Escobal, by Tahoe Resources has brought banks, restaurants, a hotel and other businesses providing goods and services to the town of San Rafael Las Flores, Guatemala.
According to an article in Elperiodico.com.gt, "El Escobal, located in San Rafael Las Flores, Santa Rosa, is considered one of the largest silver deposits in Central America, with reserves of more than 300 million ounces, as well as containing lead, zinc and gold. The company Minera San Rafael, a subsidiary of Tahoe Resources, will operate the project for 4 years and expects to initiate the exploitation work in mid-2014. "
Minning project Escobal could rival Mexico's Fresnillo, the largest silver mine of the world.
The Escobal silver project in Guatemala may one day equal the Fresnillo mine – the world's biggest producer of the precious metal – Tahoe Resources CEO Kevin McArthur said on Monday.
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