This is the Guatemala EITI 2016 Annual Progress Report (in accordance with Requirements 7.4 and 8.4).
Guatemala’s extractive sector represented 2% of GDP for 2014 and 2015, according to the latest EITI Report.
The main commodity is silver, which accounts for more than half of the value of mining production in 2015. Between 2013 and 2014, four new mining projects commenced production, including Minera San Rafael which main product is silver. However, the production of gold has been decreasing in the last years, mainly because of the depleting of Marlin, the largest gold mine in Guatemala owned by the Canadian firm Goldcorp, which finally closed in 2017. Click here to see a Report by the company on the process of closure and in response to the On Common Ground (OCG) 2010 Human Rights Assessment (HRA).
Guatemala is the 12th largest producer of silver in the world and the 47rd largest producer of gold, according to the International Organizing Committee for the World Mining Congress.
In the last years, the mining activity in Guatemala has faced serious social conflicts, some resulting in judicial claims and bills submitted in the National Congress. In June 2017, the Supreme Court suspended the license to operate to one of the largest mines, San Rafael. As of 2016, the EITI Report listed a number of bills aiming to reform the extractive sector, including a moratorium in mining and hydroelectrical operations.
There is a limited oil production. In 2015, the country produced less than 1 million barrel according to the latest EITI Report.
The sector is overseen by the Ministry of Energy and Mines.
The latest EITI disclosures show that Guatemala received USD 107 million from extractive industry taxation. Roughly 40% of these revenues comes from oil and gas, with the rest from mining, where silver, gold and zinc as the major commodities. Revenues were mainly collected through corporate income tax (38%), all types of applicable royalties (27,5%) and oil sharing tax (23%).
Revenues collected from the mining companies are allocated to the national treasury while those from the oil and gas sector are allocated to the National Development Fund -FONPETROL, created according to Decree 71-2008 and to the national treasury.
FONPETROL, in turn, allocates to departments and municipalities in accordance to an applicable legal formula. This distribution is reconciled in the EITI Report reflecting relevant discrepancies in some departaments.
The EITI encourages multi-stakeholder groups to explore innovative approaches to make the EITI more relevant and useful.
The latest Report includes an analysis of how limited licenses are affecting the financial contribution of the sector. As in previous reports it includes information on how the income from their extractive industry was distributed among some municipalities, the Petroleum Fond (FONPETROL), and the transfers made to the Protected Areas Council (PAC).
GIZ has developed interesting audios and infographic material, as well as an interactive application to develop awareness processes aimed at promoting dialogue and transparency among stakeholders to facilitate understanding.
The reports covers corporate tax, royalties and other taxes. EITI-Guatemala is currently undergoing Validation.
The Guatemalan MSG is presided by Champion, Jafeth Cabrera, Vicepresident of the Republic of Guatemala. The MSG is composed by:
EITI Champion: The Vicepresident of the Republic
Minister of Energy and Mines
Alt. Viceminister of Mining and Hydrocarbons
Minister of Public Finances
Alt. Officer at the Minister of Public Finances
Minister of Environment and Natural Resources
Alt. Officer, Ministry of Environment and Natural Resources
Acción y Propuesta
Alt. Convergencia Tezulutlan
Other members: Acción y Propuesta, Guatecivica
Sr. Alfredo Galvez, Mining sector
Sra. Regina Rivera, Mining sector
Alt. Juan José Cabrera, Mining sector
Sr. Fredy Gudiel, Hydrocarbon sector
Alt. Vanessa Rodas, Hydrocarbon sector
This EITI Report covers Guatemala's extractive sector in 2014 and 2015. It was published in January 2017.
This is the Guatemala EITI 2016-2017 work plan (in accordance with Requirement 1.5).
This is the Guatemala EITI 2015 Annual Progress Report (in accordance with Requirements 7.4 and 8.4).
This EITI Report covers Guatemala's extractive sector in 2012-2013.
This EITI Report covers Guatemala's extractive sector in 2010-2011. It was published in May 2013.
Santiago J. Dondo
Santiago J. Dondo is an expert in law and public policy related to the extractive industries. He is the Regional Director for Latin America and the Caribbean at the EITI.