The Mineral Industries of Central America in 2015
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2015 Minerals Yearbook CENTRAL AMERICA [ADVANCE RELEASE] U.S. Department of the Interior May 2019 U.S. Geological Survey The Mineral Industries of Central America Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama By Jesse J. Inestroza The region of Central America has many natural resources. In 2015, the mineral sector’s contribution to the annual In 2015, the mineral industries of Central America produced a real GDP of Central America averaged 1.2% (including an variety of metals, industrial minerals, and mineral fuels. In the estimate of 0.5% for Belize). Since 2011, the mineral sector in metals mining sector, antimony, gold, lead, nickel, silver, and zinc all countries of Central America had accounted for an average were produced. In the industrial minerals sector, cement, clay, of 3.4% or less of each country’s respective annual GDP in gypsum, limestone, marble, pumice, salt, and sand and gravel real terms. Nicaragua was the leading country in the region in were produced. Crude petroleum and various petroleum refinery terms of the value of its mineral sector since 2011, followed products were also produced in Central America in 2015. by Guatemala, Panama, Honduras, Belize, El Salvador, and Central America is divided into two main geologic and Costa Rica. In 2015, Nicaragua and Panama were the leading tectonic regions—northern Central America, which includes countries in Central America in terms of the value of the El Salvador, Guatemala, Honduras, and northern Nicaragua; mineral sectors. In 2015, total foreign direct investment (FDI) and the Isthmian link, which includes Costa Rica, southern flows to Central America amounted to about $11.9 billion Nicaragua, and Panama. In November 2015, a new Central compared with $11.2 billion in 2014. The majority of FDI American mining federation was formed to organize and was absorbed by Panama ($5.0 billion), and Costa Rica promote the emerging mineral industry in the region. The ($3.1 billion), and was followed by Guatemala and Honduras Mining Federation of Central America and the Caribbean was ($1.2 billion each) (Comisión Económica para América Latina made up of trade associations, chambers of mines, consulting y el Caribe, 2016a; 2016b, p. 78). firms, and suppliers of mining goods and services from Costa Rica, the Dominican Republic, El Salvador, Guatemala, References Cited Honduras, Nicaragua, and Panama (table 1; Browne and Browne, T., and Scheffers A., 2010, Caribbean coasts, Panama to Belize,in Scheffers, 2010, p. 265; Camara Minera de Nicaragua, 2016). Encyclopedia of the World’s Coastal Landforms: Dordrecht, Netherlands, The annual nominal gross domestic product (GDP) for the Springer, 1,516 p. Central America region in 2015 was $230.6 billion compared Camara Minera de Nicaragua, 2016, Presidente de CAMINIC Nombrado Presidente de la FMCC [President of CAMINIC named President of with $215.7 billion in 2014. The year-on-year real GDP rate FMCC]: Managua, Nicaragua, Camara Minera de Nicaragua. (Accessed of growth of the Central America region was about 3.7% in March 26, 2017, at http://caminic.com/presidente-de-caminic-nombrado- 2015. The nominal per capita GDP was the greatest in Panama presidente-de-la-fmcc/). ($13,268) followed by Costa Rica ($11,233), Belize ($4,911), Comisión Económica para América Latina y el Caribe, 2016a, CEPALSTAT database—Statistics and indicators—Economy—Real sector—National El Salvador ($4,104), Guatemala ($3,894), Honduras ($2,499), accounts—Annual—In dollars]: United Nations. (Accessed March 31, 2017, and Nicaragua ($2,086) (Comisión Económica para América at http://estadisticas.cepal.org/cepalstat/web_cepalstat/estadisticasIndicadores. Latina y el Caribe, 2016a). asp?idioma=i). In 2015, the total value of exported goods from Central Comisión Económica para América Latina y el Caribe, 2016b, Foreign direct investment in Latin America and the Caribbean: United Nations, America was $28 billion, which was a decrease of 7.3% 57 p. (Accessed April 4, 2017, at http://repositorio.cepal.org/bitstream/ from that of 2014. Of that value, $9.2 billion, or about 33%, handle/11362/40214/6/S1600662_en.pdf.) was accounted for by interregional trade. The United States Secretaria de Integración Económica Centroamericana, 2016, Monitor de continued to be the leading recipient of exported goods from Comercio de Centroamérica al cuarto trimestre de 2015 [Central American trade monitor for the fourth quarter of 2015]: Guatemala City, Guatemala, Central America in 2015, accounting for about 49.1% of the Dirección de Inteligencia Económica. (Accessed March 31, 2017, at total. The countries of the European Union (EU) accounted http://www.sieca.int/Documentos/DocumentosMostrar.aspx?SegmentoId=2& for about 20.5% of the total value of exported goods. Other DocumentoId=5346.) recipients included Mexico (3.7%), the Dominican Republic (3.0%), and Venezuela (2.6%). In 2015, the total value of BELIZE imported goods to Central America was $67.8 billion, which was a decrease of 5% compared with that of 2014. The Belize was not a globally or regionally significant mineral- United States was the leading exporter of goods to Central producing country in 2015. In 2015, Belize’s nominal GDP America in 2015, accounting for about 40% of the total, was about $1.8 billion, which was the lowest in Central followed by China (12.9%), the EU (9.9%), Mexico (9.7%), America. The country’s year-on-year rate of growth of real GDP and the Republic of Korea (2.4%) (Secretaría de Integración decreased significantly in 2014 to 1.2% compared with a revised Económica Centroamericana, 2016). 4.1% in 2014. The decreased rate of economic growth in 2015 was a result of decreased levels of crude petroleum production CENTRAL AMERICA—2015 [ADVANCE RELEASE] 6.1 in the country. Mining and quarrying accounted for an estimated Comisión Económica para América Latina y el Caribe, 2016, CEPALSTAT 0.5% of the country’s nominal GDP in 2015 (table 1; Comisión database—Statistics and indicators—Economy—Real sector—National accounts—Annual—in dollars]: United Nations. (Accessed March 31, 2017, Económica para América Latina y el Caribe, 2016). at http://estadisticas.cepal.org/cepalstat/web_cepalstat/estadisticasIndicadores. Belize Natural Energy Ltd. (BNE) made the first commercial asp?idioma=i.) discovery of petroleum in 2005 in the Spanish Lookout oilfield. La Gaceta, 2010, Diario Oficial [Official diary] 2010: La Gaceta, no. 171, 84 p. The petroleum discovered was a light crude oil located in the (Accessed March 31, 2017, at http://www.gaceta.go.cr/pub/2010/09/02/ COMP_02_09_2010.pdf.) Mike Usher No. 1 well. Annual petroleum production from the Spanish Lookout oilfield, which had been in decline since 2011, decreased to 527,741 barrels (bbl) in 2015, or by about EL SALVADOR 18% compared with that of 2014. Production from the Never Delay oilfield, which was also operated by BNE, decreased by In 2015, El Salvador’s nominal GDP was $25.9 billion, and about 82% to 468 bbl in 2015 owing to ongoing field testing of the rate of growth of real GDP was 2.5% compared with 1.4% the oilfield. After 10 years of commercial production, further (revised) in 2014. The estimated value of production from mines investment at both oilfields was canceled indefinitely owing and quarries was $77.7 million, which accounted for about 0.3% to declining prices for crude petroleum. Six companies held of the nominal GDP in 2015. The Central Bank of El Salvador exploration licenses in Belize in 2015 (Central Bank of Belize, sold about 80%, or 5.4 metric tons (t), of the nation’s gold 2016, p. 34; Ministry of Energy, Science, Technology, and reserves for $206 million in 2015 in an effort to take advantage Public Utilities, 2016). of appreciating gold prices. Strong opposition to mining continued in El Salvador, and the Government maintained References Cited an unofficial ban on mining activities in 2015; the ban had prevented any new mining permits from being issued in the Central Bank of Belize, 2016, 2015 annual report and statement of country since 2008, when mining operations polluted the water accounts: Belize City, Belize, Central Bank of Belize, 132 p. (Accessed March 31, 2017, at https://www.centralbank.org.bz/docs/default-source/ supply in the municipality of San Sebastian. OcenaGold Corp. 4.2.4-annual-reports/cbb-2015-annual-report-final.pdf?sfvrsn=2.) of Australia (previously Pacific Rim Mining Corp.) brought Comisión Económica para América Latina y el Caribe, 2016, CEPALSTAT a legal suit against the Government of El Salvador in 2009, database—Statistics and indicators—Economy—Real sector—National seeking a $300 million award because the company had been accounts—Annual—in dollars: United Nations. (Accessed March 31, 2017, at http://estadisticas.cepal.org/cepalstat/web_cepalstat/estadisticasIndicadores. unable to continue work at its El Dorado gold mine project for asp?idioma=i.) which it had completed exploration and submitted an application Ministry of Energy, Science, Technology, and Public Utilities, 2016, Geology & for a mining permit. The case was still in arbitration in 2015 Petroleum Department—Belize petroleum industry: Belmopan City, Belize, (Jamasmie, 2015; Westervelt, 2015; Comisión Económica para Ministry of Energy, Science, Technology, and Public Utilities. (Accessed March 31, 2017, at http://estpu.gov.bz/index.php/geology-petroleum/belize- América Latina y el Caribe, 2016). petroleum-industry.) References Cited COSTA RICA Comisión Económica para América Latina y el Caribe, 2016, El Salvador—Country profile: United Nations. (Accessed April 3, 2017, In 2015, Costa Rica’s nominal GDP was about $54.2 billion, at http://interwp.cepal.org/cepalstat/Perfil_Nacional_Economico. html?pais=SLV&idioma=english.) which was the second highest in Central America after Jamasmie, Cecilia, 2015, What’s behind El Salvador’s massive gold reserve Guatemala. The country’s real GDP rate of growth increased by sale?: Mining.com.