https://www.engineeringnews.co.za

NGO sues Guatemala mining Ministry for issuing Escobal licence

Escobal, Guatemala

Escobal, Guatemala

Photo by Tahoe Resources

24th May 2017

By: Henry Lazenby

Creamer Media Deputy Editor: North America

     

Font size: - +

VANCOUVER (miningweekly.com) – TSX- and NYSE-listed Tahoe Resources reported Wednesday that a Guatemala-based nongovernmental organisation (NGO) had filed a claim against the Guatemalan Ministry of Energy and Mines (MEM), alleging that the Ministry failed to consult with a local indigenous group before granting the mining licence for the Escobal mine, the third-largest silver mine in the world.

Company management stated their belief that the claims were without merit and pointed to hundreds of documented public and private meetings and open consultations in, and around, the mine area dating back to 2010.

Tahoe pointed out that despite a local census having shown that no indigenous communities were located around the mine area, it had engaged with several indigenous people during its meetings.

The NGO, called CALAS, has led several challenges against the mining licence process over the years.

"This is an attempt by an anti-mining NGO to oppose mining and other development in Guatemala despite the many benefits that these projects bring to local communities. Given the extensive consultation and socialisation process followed by both MEM and [subsidiary] Minera San Rafael leading to issuance of the Escobal licence, we are confident that the current claim is without merit," Tahoe president and CEO Ron Clayton stated.

Desjardins Capital Markets analyst Michael Parkin noted in a memo to clients that the court decisions over the years had been mixed. For example in 2013, a court of appeal in Guatemala stated that MEM should have conducted a hearing about a written opposition to the Escobal mining licence, but did not go so far as to invalidate the mining licence.

Under Guatemalan law, the MEM has 48 hours to respond to the Supreme Court from the date of notice of May 23. The Supreme Court is expected to issue an initial ruling within the next four weeks. With few other miners in the country, it is difficult to assess the likelihood of the various outcomes.

Escobal remains Tahoe’s most valuable asset despite the recent merger and acquisitions activities, which have helped lower its exposure to Guatemala.

Tahoe reported that the claim has had no impact on existing operations at the mine, which continues to meet or exceed the company’s 2017 guidance.

Edited by Creamer Media Reporter

Comments

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.068 0.12s - 156pq - 2rq
Subscribe Now