OTTAWA (dpa-AFX) - Goldcorp Inc. (GG, G.TO) provided an update following announcement by the Government of Guatemala and the Guatemalan Chamber of Industry of an agreement to voluntarily increase the royalties paid on the production of precious metals in Guatemala. As per the terms of the agreement, the royalty on precious metals will increase from 1% to 4% of gross revenue. These additional royalties will be calculated, paid, and distributed in the same manner as the royalty mandated by Guatemala's Mining Law. This includes the stipulation that 50% of the total royalty will be paid directly to the municipality in which the extraction of the mineral occurs, the company said. In addition, Marlin Mine has agreed to pay an additional 1% voluntary royalty, with 80% of this additional royalty to be used to implement the economic development plans of the Municipalities of San Miguel Ixtahuacán and Sipacapa. The remaining 20% will be paid to the Ministry of Energy and Mines and Ministry of Environment Natural Resources, to be used to develop the institutional capacity of those ministries. The company stated that the agreement also provides that the government will use a portion of the additional royalty revenue to develop the institutional capacity of the Ministry of Energy and Mines and the Ministry of Environment and Natural Resources. The government expressed the need to take the actions necessary to implement its commitment to consult with indigenous peoples and to seek consensus to resolve conflicts regarding economic development projects, including mines. The royalties paid by Montana Exploradora are in addition to the income tax of 5% of gross revenues and other wage and value added taxes paid by the company.
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