Canada Seeks to Expand Mining and Maquila Investments in Honduras

President Porfirio Lobo met Tuesday with Canada's ambassador to Honduras, Neil Reeder, and a group of Canadian businessmen, including the president of Aura Minerals, Inc., Patrick Downey, and investor David Petroff. Ambassador Reeder expressed his interest in expanding Canada's investments in the Honduran mining and maquila sectors. He specifically mentioned the need to establish new mining regulations that would both protect the interests of foreign mining companies in Honduras and create transparency in mining operations. Mr. Reeder estimated potential investments in Honduras of up to US$700 million and pointed out the benefits to the country in terms of jobs creation and additional tax revenues.

Mining in Honduras by foreign multinationals has traditionally been a source of contention, with one side arguing in favor of business interests and another pointing out the environmental damages caused by open pit mining and the use of chemicals such as cyanide. Aura Minerals is the current owner of the San Andrés gold mine the department of Copán. (4/7/10) (photo of San Andrés gold mine courtesy Oxfam America)