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Guatemala mining royalty threatens Tahoe

Tuesday, December 2, 2014

The future of Tahoe Resources'Escobal silver mine in Guatemala may be in jeopardy as the country’s congress passed Friday legislation to increase mining royalties from 5 to 10 percent.

While it still needs to be signed by the President before it becomes law, the proposed hike presents additional challenges for embattled precious metals miners, already affected by an ongoing slump in prices.

Tahoe Resources warned Monday the planned tax increase would require Escobal, which experts say could soon become one of the world’s largest producers of the precious metal, to pay double what it does now at a time when the industry is struggling and facing the lowest metals prices in four years.

Source: Mining