Guatemala works on a new mining code to boost investments

By Mayora IP

Guatemala’s Energy and Mines minister, Alberto Pimentel, explained in a press conference that the country looks to install legal and cultural certainties to reactivate mining, an industry with “significant growth potential”, according to Pimentel, but that has been hold up because of a complex reality involving violence, lack of consultation with indigenous people and environmental impacts.

Since August 27, 2021, Guatemala’s Government is working towards a new mining code which aims “to pave the way for growth in the sector while overhauling environmental regulations and seeking to resolve anti-mining conflicts”, according to BNamericas.

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.

The country’s main mining commodities are gold, silver, lead, nickel and zinc. A report by Fitch Solutions Mining stated that mining sectors across Central America and the Caribbean will see varying growth prospects over the coming years, as the region has significant untapped mineral potential, although a range of business environments and operational challenges will lead to uneven growth.