Honduras’ newly elected authorities has mentioned that the nation might be prohibit open pit mining, in accordance with an announcement launched by the nation’s surroundings ministry.
The ministry acknowledged that the approval of “extractive permits” which threaten pure assets, public well being and restrict entry to water might be cancelled.
“The pure areas of excessive ecological worth might be intervened instantly, making certain their conservation and customary advantages for the folks,” mentioned the ministry.
The assertion, nevertheless, doesn’t point out when the method would start.
The nation’s new authorities was elected in November 2021 and is led by president Xiomara Castro, who had pledged to restrict mining previous to her victory.
Aura Minerals (TSX: ORA) owns the San Andreas open pit mine, positioned about 360 km away from Honduras’ capital of Tegucigalpa. The mine produced 88,410 oz. gold in 2021, up from 60,769 oz. in 2020.
The corporate wasn’t instantly obtainable to touch upon the problem.
Final yr, Aura needed to droop its operations on the mine for practically three weeks in July as a result of a blockade by a gaggle of folks from the area people, which the corporate had described as “unlawful.”
Jean Labrecque, the CEO of Glen Eagle (TSXV: GER) which runs a gold processing plant and owns mining concessions in Honduras, informed The Northern Miner that he wasn’t involved concerning the newest announcement.
“It is a press launch and it clearly must be accepted by members of the congress,” he mentioned. “I’ve seen mining legal guidelines …and (legal guidelines) necessary to mining take two years earlier than being handed.”
He added that Honduras must adhere to its treaty with Canada, which required the nation to respect the legal guidelines by which Canadian firms invested in Honduras.
So far as Glen Eagle is anxious, Labrecque doesn’t imagine the legislation would influence the corporate because it doesn’t run an open pit mine.
Maverix Metals (TSX: MMX), one other Canadian-listed firm, holds a 25% silver stream on the El Mochito mine in Las Vegas, Honduras. The underground mine has produced over three million oz. of payable silver between 2019 and 2022.
The corporate wasn’t instantly obtainable for remark.
Honduran mining export income from silver, zinc and lead initiatives totalled practically $130 million final yr in accordance with central financial institution knowledge, stories Reuters.
At presstime in Toronto, Aura Minerals’ shares have been buying and selling at $12.00, down 37¢ or 2.99%. inside a 52-week buying and selling vary of $9.01 and $17.50. The corporate’s shares recovered from a day low of $11.87. The corporate has 72.6 million frequent shares excellent for a market cap of $886.1 million.