Honduran Government Cancels Environmental Permits for Mining Projects

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Researched by Industrial Info Resources (Sugar Land, Texas)--In a brief statement Monday, the Honduran government said it would cancel environmental permits for mining projects. It was not clear if the mandate only applied to new projects or if it would impact existing operational mines. The brief statement, which lacked explanation, sent shockwaves through the small mining community in Honduras.

There are two major operational mines in the country. The El Mochito Lead-Zinc-Silver mine has operated since 1947 and is owned by Kirungu Corporation, based in Tegucigalpa, Honduras. The El Mochito mine is completing an expansion, which will increase mine life and expand concentrator capacity from 2,300 tons per day to 2,800 tons per day.

The second mine is the San Andres Gold Mine, which started operations in 1983 and is owned by Aura Minerals Incorporated, headquartered in the British Virgin Islands. Aura also operates mines in Brazil and Mexico. In a March 1 press release, Aura Minerals said it was working to better understand the implications of the government statement, but did not expect any immediate impact on production at the San Andres Mine.

In addition to the cancellation of extraction permits, the statement from the Ministry of Energy, Natural Resources, Environment and Mines declared that open-pit mining would not be allowed and natural areas of high ecological value will be taken over by the government to ensure their conservation.

Honduras recently elected President Xiomara Castro, who had threatened to limit mining prior to her election.

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