Although in Guatemala the right to operate the El Escobal mine was granted in law, the project has been suspended for two years, making future investments in the country unviable.
The disadvantages for Minera San Rafael's operations date back to 2017, when in May of that year the Guatemalan Center for Legal, Environmental and Social Action (Calas) filed a protective action, arguing that the Ministry of Energy and Mines had not conducted the necessary community consultations before authorizing the licenses.
In Panama, the Canadian company First Quantum, owner of the copper mine in the province of Colon, sent the first vessel with 31,200 tons of copper.
The Panamanian mine whose construction began in 2013 and demanded about $6.3 billion investment, expects to export 320 thousand tons of copper concentrate per year, announced from the beginning of the year that in June would begin to export its product.
The decision of the Legislative Assembly to not endorse the bill that seeks to approve the contract between the government and Minera Panamá, shows the fragility of the contracts between the Panamanian state and companies.
The obstacles to the mining project date back several years, since the legal dispute began in 2009, when the Environmental Impact Center (CIAM) filed an appeal of unconstitutionality against the contract granting a 20-year concession to exploit and commercialize the gold, copper and other mineral resources of Cerro Petaquilla.
Canada's First Quantum, owner of the copper mine in the province of Colon, Panama, plans to begin exports by the middle of this year.
The Panamanian mine, whose construction began in 2013 and demanded a $6.3 billion investment, expects to export 320,000 tons of copper concentrated per year.
Pan American Silver agreed to acquire the shares of Canadian Tahoe Resources, thus becoming the owner of the Mina San Rafael project in Guatemala.
With no details on the transaction amount, it was reported that the agreement between the two companies was approved on January 8, 2019 and is expected to be finalized on February 26.
Representatives of the El Tambor mine, located in San José del Golfo and San Pedro Ayampuc, filed a $300 million lawsuit against the State of Guatemala.
The arbitration lawsuit was filed by the Americans Daniel W. Kappes, Kappes, Cassidy & Associates, which was registered by the International Centre for Settlement of Investment Disputes (ICSID) last December 11th.
In Panama, activities related to mining are expected to increase by more than 10% in 2019, a growth that would be mainly due to copper extraction.
According to the Panamanian government, it is estimated that the economic activity of mining and quarrying will increase over 10% in 2019, as copper exports would exceed $2 billion per year.
Nowadays, the mining sector represents around 1.6% of the GDP, however, with the greater dynamism of the activity this proportion could increase up to 6% or 7%, in a maximum period of two years.
The Pan American Silver mining company reported that it is interested in buying the shares of Canadian Tahoe Resources, the company owning Mina San Rafael in Guatemala.
Representatives of Minera San Rafael confirmed that interest exists by Pan American Silver, the world's second largest silver mining company with operations in Mexico, Peru, Bolivia and Argentina, in buying Tahoe Resources.
Exports from mining companies in Honduras totaled $133 million from January to July 2018, 35% more than reported in the first seven months of 2017.
The Central Bank of Honduras reported that during the first seven months of the year the exported value of zinc was $37.4 million, above the $24 million reported in the same period of 2017. This increase is mainly due to the 17.4 million pounds sold to Mexico and Belgium.
Adverse court decisions against companies, social and political conflicts and fiscal issues are some of the factors that are impeding the development of productive projects in Central American countries.
One of the latest court decisions affecting companies with investments in the region was that of Minera Petaquilla, in Panama. The contract that this company had signed with the Panamanian State was declared unconstitutional last week.
Arguing that the basic principles of public procurement were not complied with, in Panama the contract between the State and the company Petaquilla Minera has been declared unconstitutional.
The legal dispute began in 2009, when the Environmental Advocacy Center (CIAM) filed an unconstitutionality appeal against the contract that grants a twenty year concession to Cerro Petaquilla to exploit and sell gold, copper and other mineral resources.
Following the Guatemalan Constitutional Court's order of a community consultation as a requirement to resume operations at the San Rafael Mine, the company is now claiming that the timelines for the process are not clear.
Given the doubts that exist about the term that the government has to complete the process of community consultation, the mining company has decided to make another staff cut, given that it is unknown how long it will be before they can resume mining operations, which were halted on July 3, 2017.
Following the order to hold community consultations as a requirement for resuming operations at the San Rafael Mine in Guatemala, the authorities are waiting for the ruling to be be made firm in order to start a pre-consultation process.
After more than 300 days of waiting for a decision from the authorities, as a result of an appeal for legal protection filed by the environmental organization Calas, the Constitutional Court (CC) last week ordered a community consultation to be carried out, through the Ministry of Energy and Mines (MEM), into the operations area of the mine, in El Escobal, in the municipality of San Rafael Las Flores, department of Santa Rosa.
At last the Constitutional Court of Guatemala has spoken about the operation of Minera San Rafael, which has been paralyzed for more than a year, ordering a community consultation as a requirement to resume operations.
The project has been halted since mid-2017, when the environmental organization Calas filed an application for a declaration of fundamental rights against the mine, arguing that the Ministry of Energy and Mines had not carried out the community consultations before authorizing the operation licenses.
In Guatemala, the company Minera San Rafael, whose operations remain paralyzed pending a final decision by the Constitutional Court, announced the dismissal of another 200 employees.
The delay on the part of Constitutional Court of Guatemala continues to take its toll on the mining company, which has been unable to operate for more than 400 days.