Mining Loses Prominence in Guatemala

The contribution of mining activities to GDP has reduced in recent years, and recent cases of suspension of operating permits are not helping to improve the sector's image.

Monday, August 21, 2017

an dir="ltr">In 2012 the contribution of mining activities represented 2.8% of the Gross Domestic Product (GDP), but this proportion has been decreasing in recent years, falling to 1.1% of GDP in 2015. On top of this are the recent cases of suspension of exploration permits, which have generated uncertainty among the sector's entrepreneurs.  

See: "Mining Companies Demand Legal Certainty".

"... According to statistics from the Ministry of Energy and Mines (MEM), more than 300 exploration and exploitation licenses have been granted, but have not been used in the last two years.  Although between January and June 2017, 19 exploration licenses and 5 exploration licenses were requested."

See "Mining in Guatemala"

Mario Orellana, president of the Extractive Industries Guild, explained to that "... the useful life of an exploitation area is usually between 15 and 25 years. And in the case of the Marlin Mine, there could have been five or ten years more 'but they got tired of the bureaucratic slowness and the opposition presented by some anti mining NGO's and they preferred to leave."
"..."Basically, three companies, Marlin, San Rafael and the National Nickel Company (CGN) accounted for 98 percent of metal mineral exports and accounted for almost one percent of GDP and 18 percent of exports.  That reflects the fact that you could bet on development based on mining. But the government is killing the sector with its inaction and the courts with their rulings which we believe have not been the correct ones," Orellana said.

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