This EITI Report covers Honduras' extractive sector for years 2017 and 2018.
Honduras's extractive sector is small, but there has been interest in expanding mining investments and in developing the hydrocarbon sector.
In 2016, the mining sector contributed 1% to the GDP (369 million Lempiras or USD 15.6 million) and made up 5% of the country’s exports (statistics from Central Bank of Honduras).
Between 2015 and 2016, the main commodities exported in Honduras were gold and silver adding to a 66% of the total, followed by zinc and lead that add up to 19%.
Informal mining activities are estimated to be three to four times larger than those of the commercial mining sector.
Development prospects in the extractive sector are uncertain. Low commodity prices, increased operation costs and a lack of social license weakens sustainability chances of junior mining companies exploiting gold, iron oxide, lead, silver and zinc. Currently, the main mine in production is "Mochito zinc, lead and silver mine" operated by American Pacific Honduras. The following Honduras's minerals map shows how gold and polymetallics are abundant in the country.
Honduras sought beneficial ownership information from four mining companies operating in the country. Two of them provided information about their legal owners, noting that information about beneficial owners was not obtainable as the mother companies were registered in foreign jurisdictions. The report on beneficial ownership confirmed that Honduran legal framework does not require the identification of beneficial owners and does not allow mandatory declaration of personal information.
However, Honduras produced a beneficial ownership roadmap to be carried out from 2017 to 2019 which considers the institutional structure to reveal beneficial ownership, definition and level of details to reveal, among other factors.
Honduras, through INHGEOMIN, is working to strengthen the monitoring of production data. Mining companies report production amounts in their annual declaration (DAC) to INHGEOMIN. The 2014 EITI Report reveals that Honduras exports 100% of its metallic mining.
|Company||Commodity||Production amount||Production value USD|
|Eurocantera S.A de C.V||Gold||71,94 Kg||2 052 514|
|Five Star Mining S.A de C.V||Iron Oxide||515 800 TM||23 827 992|
|Company Minera Clavo Rico S.A. de C.V||Gold||2 162,27 Kg||2 791 158|
|Company Minera Clavo Rico S.A. de C.V||Silver||3 163,05 Kg|
|Minerales de Occidente S.A de C.V||Gold||2 578,26 Kg||110 077 651|
|Minerales de Occidente S.A de C.V||Silver||460,32 Kg|
|American Pacific Honduras S.A de C.V||Silver and lead concentrate||25 253,9 TM||97 602 797|
|American Pacific Honduras S.A de C.V||Silver and zinc concentrate||51 921,52 TM|
|Agregados del Caribe S.A de C.V||Quarries||980 449,885 TM||8 986 146|
The EITI encourages multi-stakeholder groups to explore innovative approaches to make the EITI more relevant and useful.
Honduras completed a report on beneficial ownership disclosures in October 2015. The report reveals the beneficial owners from companies that voluntarily agreed to have these details published. The report includes disclosure on legal ownership of companies which parent companies are publicly listed. The report included a legal review concluding that Honduran legal framework does not require the identification of beneficial owners and does not allow mandatory declaration of personal information.
The latest EITI Report produced by Honduras covered the years 2015-2016. The first Validation started on 25 October 2017, in which the EITI Board announced the country had reached "meaningful progress".
Honduras produced the country's first EITI Report for fiscal years 2012 and 2013 in May 2015. In accordance with the EITI Standard, Honduras concilates payments done by 6 metallic mining companies with the receipts collected by central government and municipalities. The Report also includes a confirmation of the payment of US$ 300 000 made by BG International Limited, Sucursal Honduras for the concept of canon with the receipts of the Secretary of Natural Resources and Environment (SERNA).
Honduras' second EITI Report, covering 2014, was published in September 2016. The Report provides payments data from the seven companies that account for 89% of the mineral exports and from one hydrocarbon company. According to the report, Honduras received USD 14.5 million in revenues from the mining sector. This EITI Report makes available for the first time clear and concise information about mining licenses, which complements data available in the transparency portal of the mining regulator INHGEOMIN.
Honduras became candidate on 22 May 2013. See Honduras' candidature application for more details. Honduras is now going through a second validation on 25 April 2019.
Timeline of Honduras' implementation:
According to the Decree PCM-044-2012, establishing the EITI-Honduras MSG, the distribution of seats is as follows:
State Secretary of Enery, Natural Resources, Environment and Mining (SERNA)
Honduran Institute of Geology and Mining (INHGEOMIN)
State Secretary of Finances
Institute for Access to Public Information (IAIP)
Asociation of Honduran Municipalities (AMHON)
Honduran National Association of Metallic Mining (ANAMIMH)
National Industrial Association (ANDI)
National Federation of Trade and Commerce (FEDECAMARA)
Honduran Counsil of Private Companies (COHEP)
National Anticorruption Counsil (CNA)
Alt. Foro Nacional de Convergencia (FONAC)
Federeation of Non-governmental Organizations for the Development (FOPRIDEH)
Alt. Foundation Democracy without Borders (FDsF)
Universidad Jose Cecilio del Valle (UJCV)
Alt. Universidad Nacional Autonoma de Honduras (UHAN)
The country was admitted as EITI candidate in 2013.
Honduras is currently undergoing through the second Validation which commenced on 25 April 2019.
This is Honduras's 2017 Annual Progress Report in accordance to requirement 7.4 and 8.4.
This EITI Report covers Honduras' extractive sector for years 2015 and 2016. It was published on 29 June 2018.
This is the Honduras EITI 2016 Annual Progress Report (in accordance with Requirements 7.4 and 8.4).