Guatemala

EITI Status Yet to be assessed against the 2016 Standard
EITI Member Since 2011
Latest Data From 2013
Website EITI Guatemala

Overview

Guatemala’s extractive sector represented 1.58% of GDP for 2013, according to the latest EITI Report. The main commodity is gold, with an annual production that peaked in 2011 (around 12 thousand kilos) with a contraction in 2012. The largest gold mine, Marlin, is owned by the Canadian firm Goldcorp (a member of ICMM). The second largest commodity is silver, with a sales volume equivalent to a quarter of the gold sales. Guatemala is the 15th largest producer of silver in the world and the 43rd largest producer of gold, according to the International Organizing Committee for the World Mining Congress.

There is a limited oil production as well. In 2011, the country produced 4 million barrels according to the 2011 EITI Report, but production has fallen in recent years according to the latest EITI Report and total production in 2013 was 3.65 million barrels. Guatemala is a net importer of oil. On the other hand, it has identified mineral deposits of coal, cobalt, copper, gold, iron ore, limestone, sand and gravel and uranium that could provide investment potential for further development. The sector is overseen by the Ministry of Energy and Mines.

Extractive industries contribution

  • 1.6 %
    to GDP:
  • 0.48 %
    to employment:
  • 7.5 %
    to exports:

Production

In 2013, 95% of the mining production corresponed to metalic minerals and 5% to non-metalic. The largest commodity were; gold (53%), silver (36%) and iron ore (6%).

 

Initializing chart.

Revenue collection

In 2013, as an ad-hoc agreement with the government, the mining companies paid a voluntary royalty, which represented 30% of total payments from mining. This voluntary contribution did not continue in 2014.

Initializing chart.

Revenue allocation

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-  (28%) and to the national treasury (72%).

Fonpetrol, in turn, allocates to departments and municipalities in accordance to the following formula: 5% to be distributed among all departments (proportional to population), 20% to producing departments and 3% to the local agencies responsible for monitoring the protected areas. This distribution is reconciled in the EITI Report.

 

 

Innovations

The EITI encourages multi-stakeholder groups to explore innovative approaches to make the EITI more relevant and useful.

Guatemala's latest EITI Report is the first under the EITI Standard. Among other things, this 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). 

The Report also summarises the number of active licenses by stage of development (prospecting, exploration and exploitation) for quarries, metallic and non-metallic minerals. In the oil and gas sector, the report also provides an overview of active exploration and exploitation contracts.

Implementation

Guatemala published its Beneficial Ownership roadmap in April 2017, available here.

Guatemala released the 2014 and 2015 EITI Reports in January 2017.

Guatemala published the 2012 and 2013 reports in 2015. 

The 2016-2017 Work Plan approved by the Multi-stakeholder group is available here.

Guatemala was designated EITI compliant on 19 March 2014. 

The 2015 Annual Progress Report is available here.

Guatemala published its first EITI Report in May 2013. The report covers fiscal year 2010 and 2011. 

Timeline

 

Governance

The Guatemalan MSG is presided by Champion, Jafeth Cabrera, Vicepresident of the Republic of Guatemala. The MSG is composed by:

Government

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

Civil society

Acción Ciudadana
Alt. CONGAV

CONADUR
Alt. CONADUR

Acción y Propuesta
Alt. Convergencia Tezulutlan

Other members: Acción y Propuesta, Guatecivica

Companies

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

 

 

 

 

Validation

Guatemala's Validation against the Standard will commence on 1 April 2018. The country is compliant under the 2011 Rules.