Opposition to Mining Law Reform

Mining companies in Guatemala are opposing the state being able to become their business partner, noting that it may be the prelude to nationalization or confiscation.

Tuesday, July 3, 2012

Article 125 of the bill to reform the current legal framework for the extractive industries in Guatemala, would enable the state to have participation in companies that exploit natural resources.

The concept has generated strong reaction among traders and investors in the sector, noting that "the proposal has generated uncertainty in international markets and damaged the capital of companies operating in the country or those coming to Guatemala as an investment destination."

An article in Prensalibre.com reports that "Tahoe Resources of Canada, which has a project in San Rafael Las Flores, Santa Rosa, lost 39.9% of the value of its shares last week, and the company Ainfield, from Australia, which has the Mayaniquel project has lost 17%. "

More on this topic

Guatemala Will Not Participate in Existing Mining

July 2012

The mere announcement of the draft constitutional reform in Guatemala so that the State can participate as a partner in mining companies has brought down the shareholder value of Tahoe Resources by 22%.

An article in Elperiodico.com.gt reveals the uncertainty and the damage amonst investors and businesses caused by the announcement of reforms to the Constitution that would include authorization for the State to participate by holding up to 40% of the shares belonging to companies engaged in metal extraction.

Mining Companies Concerns in Guatemala

December 2012

Mining businesses are concerned about communities who are resistance to mining activities, delays in the approval of permits and amendments to the Mining Act.

Next on the list of concerns for the sector, is the evolution of the global crisis, which investments in the extractive industry are dependent on.

Guatemala’s Constitution Reform

June 2012

President Pérez Molina has presented his proposal for constitutional reform, which includes allowing the state to hold up to a 40% stake in companies that exploit natural resources.

The project presented aims to reform 51 articles of the Constitution of Guatemala.

Regarding for the exploitation of nonrenewable natural resources, it proposes:

Guatemala Mining Reform Pushed Ahead Despite Objections

July 2012

The executive said he will push ahead with passing the bill to allow the state to have a 40% share in mining projects.

The measure was immediately rejected by the sector.

Mario Marroquin from Guatemala's mining chamber, urged the Government to immediately withdraw the proposal, warning that it would restrict investment in and development of the industry.

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