Metals

Guatemala has been the third largest producer of antimony in Latin America after Bolivia and Mexico producing 880 metric tons in 1997. Guatemala also produces iron ore and gold. It produces some industrial minerals and a variety of construction materials. Other minerals known to occur, but which are not currently worked commercially, include nickel and sulfur.

As with the overall economy, the mineral industry was dominated by the private sector. Policy for the mineral sector, including required environmental impact assessments, was set by the Ministry of Energy and Mines, which also formulated policy for the petroleum and energy industries. The Ministry of Economy was in charge of approving U.S. projects submitted under the Agreement on U.S. Capital Investment Guarantees between Guatemala and the United States. The band of external tariffs was narrowed and established at 5 % to 20 %. Meanwhile Guatemala formed a free trade area with El Salvador and Honduras. Guatemala welcomed foreign investors and has endeavored to streamline the registration process as an attraction. Mining was governed by Decree Law 69-85 of July 1985, modified by Decree Law 125-85. Small-scale mining was covered by Decree Law 55-90 of December 1990. Both laws were reformed by Congressional Decree Law 41-93 of November 1993. Petroleum activity was covered by the Hydrocarbon Law, Decree Law 109-83, and associated regulations, especially Government Edicts 1034-83 and 203-84. No law specifically covers foreign investment in Guatemala, so most of the restrictions and requirements typically found in such laws do not exist. However, restrictions on foreign investment in specific sectors do apply. The government provides incentives for hydrocarbon investments by permitting a 100 % deductible on all exploration and exploitation expenses. Petroleum investors were eligible for tax-free imports of certain goods for 5 years, suspension of duty without bond on items to be re-exported, and were allowed to maintain foreign currency deposits outside the country. Mining operations were similarly allowed duty-free imports.

Guatemala
Key Sectors
Mining/Metals: Production

Commodity	Units	1995	1996	1997	1998	1999
Bauxite	MT 1000s	0	0	0	0	0
Copper	MT	0	0	0	0	0
Diamonds	Carats 1000s	0	0	0	0	0
Gold	KG	30	30	100	100	50
Iron Ore	MT 1000s	2	5	4	4	3
Iron Ore	MT Millions	2	5	4	4	3
Lead	MT	0	0	0	0	0
Nickel	MT	0	0	0	0	0
Phosphates	MT 1000s	0	0	0	0	0
Platinum	KG	0	0	0	0	0
Silver	MT	0	0	0	0	0
Tin	MT	0	0	0	0	0
Zinc	MT	0	0	0	0	0

Sources:

US Geological Survey