Businessmen are complaining that there are over one hundred applications for licenses which have been approved by the Attorney but are pending review and approval by the Ministry of Energy and Mines.
Mining companies in Guatemala say that one of the reasons for the delays in the process for obtaining mining exploration licenses is because the government does not support this sector of the economy.
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.
Conflicts over environmental protection and excessive bureaucracy in the process of granting concessions are the factors that limit the great mining potential in the region.
The mining sector in Central America represents great potential for investment and business, however, it has so far contributed only 0.75% to the Gross Domestic Product (GDP), averaged from the six countries in the region, between 2008 and 2012.
On November 19th-21st 2014 companies engaged in mining infrastructure and construction in Central America and the Caribbean will meet in the Atlapa Convention Center in Panama.
The Mining Chamber of Panama, is organizing for the third time the International Minera EXPOConferencia event.
Mr Zorel Morales, Executive Director of the Mining Chamber of Panama, said that "...
In the first quarter of the year the country received $378 million in foreign direct investment, up 7.2% compared to the same period last year.
Of the total foreign investment in the country in the first quarter, 45% came from companies in the extractive industry and the electronics sector.
Elperiodico.com.gt reports that "... in the case of natural resources, the mining industry in mines and quarries brought in $122.8 million, with investments mainly from Canada and Russia, according to a report by the Banguat. In the same period of 2013 FDI in this sector brought in $172.4 million. "
The increase in sales of lead abroad has been attributed to the shipments that have begun from the Escobal mine, belonging to Canada's Tahoe Resources.
Lead exports increased by $141 million between January and May this year compared to the same period last year, according to the Central Bank of Guatemala.
Fernando Castellanos, Head of the Mining Department of the Ministry of Energy and Mines, told Prensalibre.com that "...
After a 30-year ban and with a $551 million investment, the Fenix project has resumed operations for the production of up to 25,000 tonnes of ferro nickel a year.
An operating license for the Niquelgua Montufar II mine was awarded in April 2013 to a subsidiary of Solway Group, Compañía Guatemalteca de Níquel, in which the Guatemalan state has a 1.8% stake.
In the first quarter sales abroad of lead totaled $83 million, due to the operation of the San Rafael mine, which extracts silver, lead, zinc and gold.
In eighth place out of the top 25 export products of the country, foreign sales of lead in the first three months of 2014 were equivalent to $83 million, while in the same period in 2013 the figure was just $1.5 million , according to the Bank of Guatemala.
A study reveals the state's inability to meet the demands for services and road infrastructure that arise when a mining project is set up.
"Mining in Guatemala's economy in 2011 accounted for 2.8% of the production of goods and services nationwide .... By 2012, the total tax contribution of the mining sector was $62,496,766 equivalent to 5.7% of production of mining and quarrying," indicated the Central American Institute for Fiscal Studies (ICEFI).
The money that the State of Costa Rica will lose in the dispute over the failed concession of the Crucitas mine will come from taxpayer's pockets.
Editorial
During the 20 year period of the soap opera that is Crucitas gold mine, none of the individuals who are involved in one way or another have suffered any financial loss and many, on the contrary, have seen an increase in their income and their bank accounts.
A mining group plans to invest $27 million in a specialized port in Izabal which will have the capacity to move half a million tonnes of nickel per year.
Businessmen linked to the mining industry, and especially to Compañía Guatemalteca de Níquel (CGN), could be investing $27 million in the construction of a port to move half a million tonnes of nickel per year.
Representatives of companies in the sector and investors will meet from 2 to 5 March in Canada in order to take part in the business conference.
The Prospectors and Developers Association of Canada (PDCA) has organized since 1932 the Annual Mining Convention which is attended by companies involved in the industry of mining exploration and exploitation in various countries.
The decline in the price of precious metals worldwide has forced the company to temporarily suspend operations at Cerro Blanco.
"The Cerro Blanco mine in Asuncion Mita, Jutiapa, will enter into a state of maintenance and care, ie only keeping areas active that are necessary for the development of the mine and its infrastructure, but it will not perform exploitation activities as was planned. "
The industrial and commercial sector of Guatemala believes the measure sends a mixed message and is unfriendly to investment.
According to the president of the Union of Extractive Industries, Mario Marroquin, "it sends a mixed message, because a few days ago the Investment Summit 2013 was held, which presented Guatemala as having potential for investment in many sectors, including mining, and now they are saying that licenses will not be granted, what then happens to those interested in the country? ".