Flagrant Legal Insecurity

The decision taken by the Guatemalan Constitutional Court confirming the suspension of La Puya mining project "violates the certainty and security of investments made in the country."

Friday, June 30, 2017

From a statement issued by the Chamber of Commerce in Guatemala:

Its branches and guilds throughout the country; state: 

1.  Legal certainty and security are fundamental principles for every democratic constitutional order, which guarantee the confidence of citizens towards the respect and compliance with current and valid rules. This confidence is undermined, when institutions called upon to guarantee them, issue adverse resolutions that violate the rights of citizens and investors.  

2.  Arbitrarily suspending  the operation of mining projects, which have complied with all of the requirements and procedures required by national laws, prior to starting operations, constitutes a clear violation of the certainty and security of the investments that are made in Guatemala, with the consequent threat to the employment of thousands of people and the well-being of their families, as well as the development of the communities where their activities are located. Any action which in a spurious and perverse way, intends to affect the operations of these companies, must be rejected in limine, in order to confirm that the investments that legitimately operate in Guatemala will find in the solidity of their institutions the necessary guarantees to continue contributing to the development of the country. 

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Mine Suspension Confirmed in Guatemala

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The Constitutional Court decided to keep the "Extracción Minera Fénix" project, located in the department of Izabal, suspended and ordered the community consultation process to be carried out within 18 months.

As a result of a legal appeal filed by a group of residents, who argued that the community consultation process for the operation of the mining project had not been exhausted, in mid-July 2019 the judges of the Constitutional Court (CC) decided to suspend the license for the right to exploit the Fénix mine.

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Industrialists are demanding that the Constitutional Court rule on the request for legal protection that was granted in favor of an environmental group and which is keeping the mine's operations in a state of paralysis.

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Another Mining Company Suspended in Guatemala

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