Guatemalan Mine Operation Suspended

The temporary suspension of the exploitation right license of the Fénix mining company, operated by Compañía Guatemalteca de Níquel, in the department of Izabal, is reported.

Friday, July 19, 2019

After a group of neighbors claimed before the Supreme Court of Justice that for the mining project concerned, the community consultation process was not exhausted, in February of this year an injunction was granted in favor of the plaintiffs, but the company's operations were not suspended.

Because of discontent with the lack of interruption of operations, the file was submitted to the Constitutional Court, whose judges decided to suspend the exploitation right license of the Fénix mine, until there is a final resolution on the protection, for which there is no defined period.

You may be interested in "Mine Suspension and Future of Investments

Prensalibre.com reviews that "... The neighbors claim that the community consultation process around the project was not exhausted, to which the company responds that there was. The project allows the exploitation of the mineral for 25 years, for which the company has invested US$580 million, about Q4 billion 400 million."

The article adds that "... In the region there are opposing opinions, because while there are neighbors who claim that the exploitation has not generated development or employment, the workers state that the project has improved living conditions."

This case is similar to the situation of the right to operate the El Escobal mine, a project that has already been paralyzed for two years, since, like the right to exploit the Fenix mine, an amparo action was filed in which it was argued that the Ministry of Energy and Mines had not carried out the necessary community consultations before authorizing the licenses. See history of the issue.

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More on this topic

Mine in Guatemala: Clear and Objective Consultation

June 2020

After the Constitutional Court decided to keep the "Extracción Minera Fénix" project suspended, the private sector is asking the authorities to start the community consultation process as soon as possible, in an objective and clear way.

The operations of the mine located in the department of Izabal were suspended since July 2019 as a result of a legal appeal filed by a group of neighbors, who argued that the community consultation process for the operation of the mining project had not been exhausted.

Mine Suspension Confirmed in Guatemala

June 2020

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.

Mining Case to Emerge Internationally

August 2019

The Guatemalan Nickel Company announced that it will go to the Inter-American Court of Human Rights to request precautionary measures in response to the local authorities' decision to suspend operations at the Fénix mine in Izabal.

In mid-July the magistrates of the Constitutional Court (CC) decided to suspend the right to exploit the Fénix mine, a ruling that will remain in effect until there is a final resolution on the protection raised by a group of neighbors, who argue that the process of community consultation for the operation of the mining project was not exhausted.

Another Two Mines Suspended in Guatemala

June 2016

The Mining Exploitation Project Niquegua Montufar II, run by Compañía Guatemalteca de Níquel, and the one called Tajmulco II, by Montana Exploradora de Guatemala, have been suspended by the government.

A statement issued by the Ministry of Energy and Mines indicates that "...Adhering to the appeal granted by the First Chamber of the Court of Appeals of the Civil and Commercial Branch constituted in the Court of Appeal, the Ministry of Energy and Mines (MEM), notified Compañía Guatemalteca de Níquel (CGN), of the suspension of its authorization license for operating the mining exploitation project Niquegua Montufar II. "

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