Guatemala

EITI Status Suspended for missing deadline
Joined EITI in 2011
Latest Data From 2013
Website EITI Guatemala
Last updated 12 February 2019

Overview

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. 

Extractive industries contribution

  • 2.0 %
    to GDP:
  • 13 %
    to foreign direct investement:
  • 14 %
    to exports:

News, blogs and more

Tax and legal framework

The Guatemalan extractive industry is regulated by several norms including:

Learn more about mining legal framework in Guatemala here.

Learn more about hydrocarbon legal framework in Guatemala here.

Contracts and licenses

According to the Guatemala latest EITI Report, hydrocarbons contracts are awarded by public bidding and approved by the President of the Republic and the Cabinet (published in the Official Diary as Governmental Agreements). In the mining sector, the Ministry of Energy and Mines (General Mining Directorate) is responsible for awarding mining licenses (geological survey, exploration, exploitation). EITI-Guatemala Report explains the procedures for awarding mining titles.

Taxes are collected by the Superintendancy of Tax Administration (SAT, in spanish) and royalties are collected by the Ministry of Energy and Mines. 

To access more information, see below:

Production

In 2016, 95% of the mining production corresponded to metalic minerals and 5% to non-metalic. The largest commodity were silver (56%) and gold (27%).

Initializing chart.

Revenue collection

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%).

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 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.

Innovations

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.

Implementation

Guatemala was suspended by the EITI Board on 1 February 2019 due to the failure to publish the 2016 EITI Report and the 2017 Annual Progress Report on time. The suspension will be lifted if the EITI Board is satisfied that the 2016 EITI Report is published within six months of the deadline (i.e. by 30 June 2019) and the outstanding Annual Progress Report is published.

Guatemala published its first EITI Report in May 2013. Guatemala published the 2012 and 2013 reports in 2015 and released the latest report (2014 and 2015) in January 2017. 

The reports cover corporate tax, royalties and other taxes. EITI-Guatemala is currently undergoing Validation. 

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

MSG EITI-Guatemala Terms of Reference

Validation

Guatemala's Validation against the Standard commenced on 1 April 2018.

EITI Reports and other key documents

reporte_guatemala

Guatemala 2014-2015 EITI Report

Published Date: 
January, 2017
Publisher: 
Guatemala EITI

This EITI Report covers Guatemala's extractive sector in 2014 and 2015. It was published in January 2017.

Read more
View all documents related to Guatemala in our publications library

Contacts

National Coordinator

Luis Alfonso Chang Navarro

Minister of Energy and Mines

International Secretariat

Santiago J. Dondo

Santiago J. Dondo

sjdondo
Regional Director
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