The National Congress approved the Reform to the General Mining Law, through Legislative Decree No. 109-2019. The General Mining Law aims to regulate mining and metallurgical activities in the country. The Reforms to the General Mining Law are due to the fact that, on June 23, 2017, the Constitutional Chamber of the Supreme Court of Justice (CSJ) declared the Unconstitutionality of 6 of the articles that comprise the Law, leaving a legal vacuum and making these articles inapplicable due to the unconstitutionality indicated

Among the main novelties of the Reforms applied is the regulation of the exploration, exploitation and benefit of Mining activities according to international standards.

This reform is aimed at the protection of the environment, health and public safety. As well as it is included in the reforms that prior to the mining request, an open town council consultation must be carried out within the municipality in which the mining activities will be carried out, in a period not exceeding 90 days.

Another of the reformed measures is the modification of the fees that companies must pay for exploration or mining. The new fees were established as follows:

EXPLORATION CANON

a) The equivalent in lempiras to one fifty dollars of the United States of America (US $ 1.50) for the first year and for each hectare or fraction requested, in the case of concessions;

b) The equivalent in lempiras to three fifty dollars of the United States of America (US $ 3.50) per year and per hectare or fraction granted or requested, in the case of metallic and nonmetallic exploration concessions in the second year;

c) The equivalent in lempiras to five fifty dollars of the United States of America (US $ 5.50) per year and per hectare or fraction granted or requested, in the case of metallic and nonmetallic exploration concessions in the third year;

d) The equivalent in national currency to seven fifty dollars of the United States of America (US $ 7.50) per year and per hectare or fraction granted or requested, in the case of metallic and non-metallic exploration concessions in the fourth year; and,

e) The equivalent in national currency to nine fifty dollars of the United States of America (US $ 9.50) per year and per hectare or fraction granted or requested, in the case of metallic and non-metallic exploration concessions in the fifth year.

EXPLOITATION CANON

a) The equivalent in lempiras to United States dollars (US $ 10.00) per year and per hectare or fraction granted or requested, in the case of metal and non-metal operating concessions in the first ten (10) years;

b) The equivalent in lempiras to United States dollars (US $ 12.00) per year and per hectare or fraction granted or requested, in the case of metal and non-metal operating concessions in the next ten (10) years; and,

c) The equivalent in lempiras to fourteen dollars of the United States of America (US $ 14.00) per year and per hectare or fraction granted or requested, in the case of metal and non-metal operating concessions in the last ten (10) years of the project.