UPDATE 1-Goldcorp says Guatemala raises precious metals royalty

Fri Jan 27, 2012 3:17pm EST

Jan 27 (Reuters) - Goldcorp Inc, Canada's No. 2 gold miner, said Guatemala raised the royalty on precious metals by 3 percent, in addition to the royalty mandated by the Central American country's mining law.

In June 2010, Goldcorp had suspended operations at its Marlin mine in Guatemala for over a year, following the government's allegation that the facility was contaminating water supplies. Late last year the government allowed operations at the mine to resume under a new law.

Goldcorp said royalty on precious metals will increase to 4 percent from 1 percent of gross revenue.

The company will also pay an additional 1 percent voluntary royalty to mostly help the development of local municipal bodies.

Goldcorp paid about $86 million in taxes and royalties in Guatemala in 2011.

The Marlin mine currently employs 2,241 people, 97 percent of whom are citizens of the country, Goldcorp said in a statement.

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