Guatemala mulls 25% mining royalty

Miners in Guatemala will pay up to 25% in royalties under new proposals.

Congressman Juan Ramón Lau Quan of the centrist Todos party announced plans to reform the country's mining code.

Under the proposals, royalties will be increased to 25% for miners of gold, silver, platinum and radioactive materials.

Other miners producing metals such as iron ore, nickel, copper, lead and zinc will pay 15% with non-metallic miners paying 10%.

Miners in the country currently pay a mandatory rate of 1% of revenues, with companies including Tahoe Resources paying an additional voluntary royalty of 4%.

A 10% mining royalty imposed in 2014 was annulled last year by Guatemala's constitutional court.

DETAILS

The proposed reforms also include the creation of a mining fund to distribute money raised by the royalties, including in community development projects in mining areas.

Mining companies would also be required to conduct consultations regarding mining projects with indigenous communities.

The proposals will be examined by congress before being sent for analysis by the relevant commission.

Goldcorp also has the Marlin gold mine in Guatemala, while Solway Investment Group has the Fénix nickel operation.

Pictured: Tahoe Resources' Escobal silver-lead-zinc mine.