Gold, silver, lead and zinc were some of the main materials exported during 2017, and the main buyers were the USA, Germany, Aruba, Austria and Belgium.
The authorities at the Honduran Institute of Geology and Mines (Inhgeomin) presented figures for 2017 and explained that the good performance achieved last year was mainly due to favourable international prices and to the reactivation in economies such as the United States, which led to an increase in demand for metals and minerals, especially for construction.
On August 16 and 17 industry representatives from around the globe will be taking part in business conferences and lectures on the role of mineral resources and the impact of the activity on the economy.
The II International Mining Congress is being organized by the Mining Chamber of Nicaragua and will be held on August 16 and 17 in Managua.
The conference will include business conferences, panels and lectures on the economic and social impact of mining on communities; the role of metallic and non-metallic mineral resources in developing countries and environmental challenges in modern mining.
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.
The study notes that in ten years the contribution of mining to the economy was only 1.25% of GDP.
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.
At the moment studies are being carried out on more than 160 applications from companies seeking to explore mining areas under the framework of the new legislation passed in 2013.
Since the adoption of the new Law on Mining operations in Honduras, the Honduran Institute of Geology has received more than 160 applications for exploration permits from mining companies.
The attractiveness of the mineral resources in the country is overshadowed by legislation that raises doubts among international investors.
The validity of the Act on Promotion of the Development and Reconversion of Public Debt is raising doubts among international investors interested in mining in Honduras, according to Santos Gabino, advisor to the National Association of Metal Mining in Honduras.
Modifications made to the law after its approval in early 2013 could discourage investments for this year.
The conditions that the industry expected this year are different to those of 2013, as international prices of precious metals have dropped and the changes made to the law passed in early 2013 could discourage foreign investment planned for this year.
Investors from China, England, Peru, Brazil, Canada and the USA are waiting for the outcome of the general election before risking investing in mining projects.
Laprensa.hn reports: "The long wait for the country to have a mining law that is in line with the current situation has had an impact on the arrival of new investments, all of which are dependent upon the results of the November general election to define their situation ".
Companies from several countries are waiting for regulations on the new Mining Act in order to exploit the nation's mineral potential.
According to the Minister of Geology and Mines, Aldo Santos, the regulations could be ready in late August. He explained that after that date the Honduran Institute of Geology and Mines will respond to all of the concession applications it receives.
The regulation allows surveys to determine if there is evidence of mineral deposits anywhere in the country, except in specifically excluded areas.
The General Mining Law, approved in January by the Honduran Congress, became effective upon publication in the official newspaper of the Republic, La Gaceta.
According to this law, the exploration stage should be governed by the Manual of Good Mining Practices, which has to be reviewed periodically to keep it updated.
Congress has approved a new mining law which eliminates all tax shields for mining companies.
For seven years the country has had an incomplete mining law, as in 2005 the Supreme Court struck down 13 items of this legislation, among which were items relating to the collection of taxes on mining companies.
Laprensa.hn reports that "In the new mining law, it is specified that any exploration awards for non-metallic mineral and gems or precious stones will last a maximum of two years, counted from the date of concession award. Regarding metals, the concessions will be for a maximum of five years counted from the date of award. The basic points of the legislation say the in no way will the mining authority grant mining concessions or benefits, if the corresponding concessionaire does not have an environmental license, issued by the appropriate authority. "
They point to the mining potential as a decisive factor for the country’s development, having the capacity to attract investments of $14 billion.
An article in Tiempo.hn reports that "The National Association of Industrialists (ANDI) is urging the National Congress to approve the new Mining Act in order to attract foreign investment in the order of 280 billion lempiras, about $14 billion.
In Honduras there are 151 operating permit applications for mining projects involving huge investments that are waiting to be processed.
Businessmen say that "The lack of a law regulating the mining sector is the main obstacle to the 151 stalled requests by foreign and national investors, who have millions available to exploit deposits in Honduras."
An estimated $3 billion is lost by the country annually due to lack of a legal framework to provide security for mining investments.
Honduras exported $300 million a year in the business of mining through 3 companies that continue to operate after the withdrawal of 6 other companies due to the absence of an appropriate regulatory framework, said the president of the National Association of Mineworkers (Anamin), Santos Gabino Carbajal.
The committees of the National Congress of Honduras have finished writing a report on the new Mining Law.
During the process of preparing the document, the committee that worked on it met with environmental groups, the mining sector and the authorities of the Directorate for the Promotion of Mining (Defomin).
"Aldo Santos, head of Defomin, was confident that the new law will be passed in the first two months of this year and indicated that, despite the lack of legislation, mining activity in the country generated $ 288 million in exports in 2010", reported Elheraldo.hn.