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.
The growth of the metal mining sector and the framework provided by a new mining law have generated interest from foreign companies.
Up until October 2013, the share of mineral products in exports of general merchandise was $232.7 million, equivalent to 7%. This, and the adoption of a new mining law last year, has attracted interest from foreign investors who have set their eyes on Honduras.
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 ".
The so called "Mortgage Law" in Honduras is causing alarm to mining companies who hold unproductive concessions.
According to an article in Elheraldo.hn in a meeting with representatives from the U.S. Embassy in Honduras, "The leadership of the National Association of Metal Mining Companies in Honduras (Anamimh) has formalized its position against the applicability of the Law on Development Promotion and Domestic Debt Restructuring, because it is a threat and an attack against the local mining industry and deserves to be vetoed by President Porfirio Lobo. "
A government commission has traveled to China to negotiate direct sales of iron oxide from the Agalteca mine.
This was stated by Santos Gabino Carvajal, president of the National Association of Metal Mining in Honduras (Anamimh), who in a meeting with Aldo Santos, chief of the Directorate for the Promotion of Mining (Defomin), explained that the idea is to send in directly iron oxide mined in Agalteca in Francisco Morazán.
The approval of the Mining Act has peaked the interest of investors interested in the exploration and exploitation of minerals, which could contribute up to $3.5 billion.
Laprensa.hn reports that "Santos Gabino Carvajal, president of the National Association of Metal Mining in Honduras (Anamimh), said that in the last seven years Honduras has not received a single dollar in mining investment, despite its great potential, and that all investments planned in the country were diverted to Nicaragua and Colombia. "
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."
A group of Chinese businesses has stated its interest in extracting non-precious metals such as iron, lead and zinc.
Santos Gabino Carbajal, president of Honduran metal mining association Anamimh, explained that the Chinese delegation has held meetings with Honduran businesses that own mining concessions with a view to negotiating joint ventures.
He added that the investors plan to return in October with concrete economic proposals.
Spokepersons for the country's mining industry have once again asked congress to approve a law that enables the sector to be regulated.
La Tribuna reports comments from Santos Gabino Carbajal, president of the Honduran Metal Mining Association (Anamimh in Spanish), saying that, "there is significant interest from foreign investors in bringing capital into Honduras of around $185 million but they lack sufficient legislation to enable them to do so".
There is an unbeatable way to end with mining once and for all.
Sometimes the best way to rebut extreme ideas is to reduce them to the absurd. This is what Santos Gabino Carvajal does in an article published in Sigloxxi.com.
It must be noted that Gabino Carvajal has a large stake in the matter, as he is the president of the Honduran Metal Mining Association.
The Metal Mining Association rejected declarations by the head of t he Executive Income Department about earnings by the sector that exceeded $17 million in 2007.
The website of the La Tribuna reported that "The president of Anamimh, Santos Gabino Carvajal, said that the report by Sarmiento on the alleged earnings by various sectors of the economy in 2007, given during a press conference at the Presidential House, was 'malicious and speculative.' According to Carbajal, the director of the DEI is trying to confuse public opinion by not highlighting the difference between metallic and no-metallic mining and by not pointing out that the companies also have costs of operations.
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