Tahoe Resources Inc (NYSE:TAHO) announced that the Guatemalan Supreme Court made a decision that reestablishes the Escobal mining license of company’s Guatemalan subsidiary unit named Minera San Rafael (MSR). This decision changes the Supreme Court’s previous verdict to suspend MSR’s license pertaining with an action brought forward by the anti-mining firm, CALAS, against Guatemala’s “MEM”. CALAS asserts that MEM breached the Xinca natives’ right of consultation in advance of allowing the Escobal mining license to Minera San Rafael.
As part of its verdict, the Supreme Court stated MEM to perform a discussion under ILO Convention 169. MEM has been stated to discuss with the Xinca native communities within a specific geographic region and report data of the consultation to the approval of the Court within one year.
Tahoe is seeking explanation from the Court on the certain geographical segments to be comprised within the scope of MEM’s discussion. Although the company considers that MEM conformed with ILO Convention 169 before it allotted the Escobal license, it will fully back MEM in any of its imminent indigenous engagement and will promote MEM to include independent ILO 169 professionals to help in this procedure.
Tahoe anticipates that the Xinca Parliament, CALAS and other interested entities may appeal the Supreme Court’s verdict to the Constitutional Court. The parties that have standing and the chance to appeal the verdict include MSR, MSR’s vendors and employees, CALAS, judicially designated municipalities and the Xinca Parliament.
After the Supreme Court decides on MSR’s motion for explanation, MSR will be entitled to appeal the case to the Constitutional Court if it considers necessary. The Constitutional Court is anticipated to rule on all pleas by the close of the year. While the Supreme Court verdict enables Escobal operations to start immediately, the prohibited roadblock at Casillas is underway, preventing an immediate resume of operations currently.