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Guatemala: Shares of Tahoe Resources drop after Supreme Court suspends mining licenses due to possible lack of consultation with indigenous people; includes company statement


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7 July 2017

Tahoe licences suspended for lack of consultation with indigenous communities, while company denies indigenous presence and opposition

Author: Maritimes, Guatemala Breaking the Silence Network, Mining Injustice Solidarity Network, MiningWatch Canada, Network in Solidarity with the People of Guatemala & Progressive Leadership Alliance of Nevada

…On Wednesday July 5, the Guatemalan Supreme Court of Justice announced that it was temporarily suspending two of Tahoe Resources’ mining licences until a suit against the Ministry of Energy and Mines is resolved for discrimination and lack of prior consultation with Indigenous Xinka communities in the area of the company’s Escobal silver mine. Tahoe has consistently denied the presence of Xinka communities in the area of influence of the Escobal project and failed to report on the strength of opposition of both the Xinka and non-indigenous communities affected by its mining operations…The two suspended licences include the Escobal licence where the large underground silver mine was built and operates in the municipality of San Rafael Las Flores. The second is the Juan Bosco exploration licence in the municipalities of San Rafael Las Flores, Mataquescuintla, Nueva Santa Rosa, and Casillas. The latter three municipalities all held plebiscites prior to the granting of the exploitation permit for Escobal in which tens of thousands of people voted against any mining in their area. 

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5 July 2017

Guatemalan lower court issues ruling on Tahoe’s mining license

Author: Tahoe Resources

…Tahoe Resources Inc. (TSX: THO, NYSE: TAHO) (“Tahoe” or the “Company”) today reported that the Company has learned that the Supreme Court of Guatemala has issued a provisional decision in respect of an action brought by the anti-mining organization, CALAS, against Guatemala’s Ministry of Energy and Mines (“MEM”).  The action alleges that MEM violated the Xinca Indigenous people’s right of consultation in advance of granting the Escobal mining license to Tahoe’s Guatemalan subsidiary, Minera San Rafael.  The provisional decision is in respect of a request by CALAS for an order to temporarily suspend the license to operate the Escobal mine until the action is fully heard.  The Company understands that no Xinca representative or community is currently participating in the CALAS lawsuit…The Company believes that all consultation obligations relating to the permitting of the Escobal license were met.  The last official census shows the San Rafael community to be 98.6% non-indigenous and with no Xinca community presence…

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5 July 2017

Tahoe Resources forced to halt Escobal mine in Guatemala

Author: Cecilia Jamasmie, Mining.com

Shares in Latin America-focused Tahoe Resources (TSX:THO)(NYSE:TAHO ) were down 28% in Toronto and more than 33% in early trading in New York, after the company disclosed late Wednesday that Guatemala's Supreme Court had suspended the license for its flagship Escobal operation, the world's third largest silver mine…Tahoe said the mine will be placed on “stand-by” after the formal receipt of the order, adding that it will be maintained in a manner such that “full production can be expeditiously resumed on a reversal of the suspension.” While Tahoe is preparing for a three-month mine suspension, Haywood analysts project no production from the mine for the remainder of 2017…

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