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.
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.
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.
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.
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.
Although in Guatemala the right to operate the El Escobal mine was granted in law, the project has been suspended for two years, making future investments in the country unviable.
The disadvantages for Minera San Rafael's operations date back to 2017, when in May of that year the Guatemalan Center for Legal, Environmental and Social Action (Calas) filed a protective action, arguing that the Ministry of Energy and Mines had not conducted the necessary community consultations before authorizing the licenses.
One year after the suspension of operations at the El Escobal mining project in Guatemala, the company is still waiting for a definitive judicial decision from the Constitutional Court.
In May 2018, the Legal, Environmental and Social Action Center of Guatemala (Calas) filed an appeal for legal protection, arguing that the Ministry of Energy and Mines had not carried out the necessary community consultations before authorizing the licenses.
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.
After seven months of suspended operations, the company that operates the Escobal mine in Guatemala has announced that it is making 250 workers redundant.
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.
Minera San Rafael will have to cease operations after its two operating licenses were suspended as a result of a writ of protection granted by the Supreme Court of Justice to an environmental group.
Prensalibre.com reports that "...The licenses for El Escobal, approved in 2013, and Juan Bosco, in 2012, are suspended and as a consequence, the San Rafael mine must stop its operations.The extraction plants whose licenses are now invalid are located in Mataquescuintla, Jalapa, and Nueva Santa Rosa, Casillas, and San Rafael Las Flores, Santa Rosa."
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."
From a statement issued by the Chamber of Commerce in Guatemala:
Its branches and guilds throughout the country; state:
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.
At the end of June last year, the Supreme Court of Justice "definitively" revoked theoperating permitfor 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.
In one week seven projects were suspended and ten others could also suffer the same fate, while 611 license applications are under review.
Ten projects located in Santa Rosa, Quiché, San Marcos, Quetzaltenango, Huehuetenango, Totonicapan and Baja Verapaz are facing law suits for different reasons, from alleged violations of the human right to water to a breach of opposition administrative formalities.
The lack of political stability and a clear tax system, make Guatemala unattractive for investment in metal extraction, compared with countries like Chile and Brazil.
A study by Central American Business Intelligence (Cabi) puts the Central American country at a disadvantage when compared with Chile, Brazil, Peru and Mexico in the exploitation of metals.