Vancouver-based Goldcorp announced Friday that royalties paid in Guatemala on the production of precious metals will increase to four percent of gross revenue, up from one percent.
The Guatemalan government and the Guatemala Chamber of Industry on Thursday announced higher royalties, but declined to offer specifics. The new policy also requires that 50 percent of the total royalty be paid to the municipality where the extraction occurred.
Also, the company's Marlin mine will pay an additional one percent voluntary royalty, with 80 percent of that money aiding economic development in the municipalities of San Miguel Ixtahuacan and Sipapcapas, while the other 20 percent will go to the government's Ministry of Energy and Mines and Ministry of Environmental Natural Resources.
"This agreement in Guatemala represents a tremendous step forward for all stakeholders of the Marlin mine," Chuck Jeannes, Goldcorp President and CEO, said in a statement. "The enhanced revenues generated by the new royalty agreement will enable greater investment in community development initiatives in the region and foster a strong, consistent regulatory framework."
The government has also agreed to use some of the additional revenue to develop "the institutional capacity of the Ministry of Energy and Mines and the Ministry of Environmental and Natural Resources," according to the company.
Shares of Goldcorp closed Friday up 1.30 percent to $49.24.
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