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Guatemala City, Guatemala

Guatemala

Status
Inadequate progress / suspended
Joined
1 March 2011
Latest validation
2020
Latest data from
2015
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Overview and role of the EITI

Guatemala primarily exports lead, gold, silver, nickel, zinc and oil. The country has a relatively small extractive sector, which contributed 0.6% of total government revenues and 1.2% of the national GDP in 2017. Mining activity has decreased over the past years due to closures and temporary suspensions of several mines, which resulted in a downturn in mineral exports. While oil production is limited, it represented a quarter of Guatemala’s exports earnings from the sector in 2017. 


Guatemala’s mining sector has been the source of several social conflicts, some resulting in judicial claims and bills submitted in the National Congress. In 2017, the Supreme Court suspended the license to operate to one of the largest mines, San Rafael. EITI reporting has listed several bills aiming to reform the extractive sector, including a moratorium in mining and hydroelectrical operations. 


Guatemala joined the EITI with the aim to improve public understanding of extractive sector management and to support capacity building for members of the EITI multi-stakeholder group. Opportunities remain for the EITI platform to be used to inform public debate and reform on matters of public interest that pertain to how the sector is managed and benefits communities. 
 

Economic contribution of the extractive industries

.6%
to government revenues
4.2%
to exports
1.2%
to GDP
.37%
to employment
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Download country data

Download open data on government and company revenues, revenues by revenue stream and indicator, summary data and more.


Innovations and policy reforms

  • A 2017 report, published with the support of GIZ, outlines opportunities for collaboration between EITI Guatemala and EITI Perú to strengthen the impact of EITI implementation in both countries.
  • In 2016, a group of civil society organisations published a study on the contribution of Guatemala’s mining sector to development.

The EITI is a highly relevant initiative for the country, due to its nature and objectives. Its implementation allows stakeholders to learn about the strengths, opportunities, weaknesses and risks of the industry, to dialogue and reach consensus, and to generate public policy based on this information.

Cesar Guillermo Castillo Vice President of Guatemala

Extractive sector data

Revenue collection

Level of detail 2

Revenue distribution

2015
Standardised revenue types

Top paying companies

2015

Extractive sector management

Licenses and contracts

Hydrocarbons contracts are awarded by public bidding and direct negotiation in the form of services contracts, operation contracts and production sharing contracts (PSCs), and are approved by the President of the Republic and the Cabinet. These are published in the official diary as governmental agreements.  

Mining prospecting, exploration and exploitation licenses are awarded by the General Mining Directorate under the Ministry of Energy and Mines. Applications must include an environmental mitigation or impact assessment. Mining licenses are listed in Guatemala’s EITI Reports and on the Ministry of Energy and Mines’ website.

Beneficial ownership

Guatemala does not have a legal framework mandating the disclosure of beneficial ownership and does not disclose information in its government systems or EITI reporting.

Revenue distribution

Revenues collected from mining companies are allocated to the national treasury, while those from the oil and gas sector are allocated to the national treasury and the national development fund, FONPETROL, in accordance with Decree 71-2008.
FONPETROL, in turn, allocates a share of revenues to departments and municipalities in accordance with an applicable legal formula. 


EITI implementation

Governance

EITI-Guatemala is administered by the Guatemala Multi-Stakeholder Group (MSG), also known as the Comision Nacional. The MSG is hosted by the Ministry of Energy and Mines and chaired by the Vice President of Guatemala, Guillermo Castillo Reyes.

Timeline

Validation

Guatemala was found to have made inadequate progress in implementing the 2016 EITI Standard in January 2020, following its first Validation. The Validation identified 18 corrective actions to be addressed by the country’s next Validation, expected to commence in October 2022.


Key documents


Contacts