Congress Rolls Back Tax on Mining Exports

Honduras Weekly
The Honduran Congress last week passed legislation imposing a 2 percent tax on all mining exports. The original tax levied on the mining industry was 5 percent, but it was rolled back in response to pressure from the business community. Foreign-and domestic-owned mining companies in Honduras exported approximately US$190 million worth of gold, silver, and base metals in 2010. The country's controversial mining law, written in 1999 with the help of mining industry representatives, is in the process of being reformed. It is widely believed to overly favor the economic interests of industry to the detriment of the environment and the health of people living in mining zones. Congressional action on the mining export tax suggests that the influence of industry remains strong and that any changes in the mining law will do little to address the concerns of communities that have been hurt.

According to advocacy groups such as ASONOG in Santa Rosa de Copán, there have been two major cyanide spills from mining operations and numerous smaller ones that have poisoned rivers. A spill in 2003 from the Minosa mine, currently owned by Aura Minerals, Inc. of Vancouver, Canada, dumped 500 gallons of waster water with cyanide into the Lara River in western Honduras, killing thousands of fish and contaminating the drinking for the region. Another cyanide spill of 150 gallons in the same river occurred in 2009. (9/19/11)