Mining Companies Demand Legal Certainty

Guatemala's industrialists are demanding speed in the resolution of the case against the La Puya mine, property of Exmingua, whose operating permit was annulled a year ago by the Supreme Court of Justice.

Tuesday, June 6, 2017

At the end of June last year, the Supreme Court of Justice "definitively" revoked the operating permit for the mine La Puya, awarded to the company Progreso VII Derivatives. Now the mining union is asking the Constitutional Court to resolve the problem more quickly, consistent with and as a consequence of the ruling issued to OXEC and as a sign of equal rights and respect for the legal certainty of Guatemala.

From a statement issued by the Chamber of Industry: 

Guatemala, June 2, 2017.  The Chamber of Industry of Guatemala and the Extractive Industries Guild (GREMIEXT) has asked the Constitutional Court to reverse the ruling issued in regards to the operations of La Puya Mine belonging to the company EXMINGUA as well as to issue a short and definitive ruling, being consistent with and as a consequence of the ruling issued to OXEC and as a sign of equal rights and respect for the legal certainty of Guatemala.

The resolution by the CC in the Exmingua case is inconsistent with that issued a few days ago for the hydroelectric station Oxec, since the latter indicates that the entity can continue its operations and gives a period of 12 months for the State to carry out the consultation process. On the other hand, the decision by Constitutional Court in the case OXEC mentions that the procedure designed as part of that judgment applies to all projects. In the case of La Puya, this project has been suspended for more than 1 year. 



More on this topic

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.

San Rafael Mine Still in Limbo

February 2018

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.

The project has been paralyzed since an environmental organization filed an request for legal protection against the mine, arguing that the Ministry of Energy and Mines did not carry out the necessary community consultations before authorizing the licenses. 

Mining Loses Prominence in Guatemala

August 2017

The contribution of mining activities to GDP has reduced in recent years, and recent cases of suspension of operating permits are not helping to improve the sector's image.

In 2012 the contribution of mining activities represented 2.8% of the Gross Domestic Product (GDP), but this proportion has been decreasing in recent years, falling to 1.1% of GDP in 2015. On top of this are the recent cases of suspension of exploration permits, which have generated uncertainty among the sector's entrepreneurs.  

Mining Operation in Guatemala Suspended

February 2016

The Supreme Court has temporarily suspended the extraction of gold and silver on the Tambor mine in response to an appeal lodged on behalf of indigenous peoples.

The mine in question is Progreso VII Derivadas, owned by Exploraciones Mineras de Guatemala, S. A., Exmingua in La Puya, department of Guatemala and it is dedicated to the exploitation of gold and silver.

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