Guatemala mine suspension 'will hit investment'

A court ruling ordering the suspension of Solway Investment Group’s Fénix nickel mine could further undermine investment in Guatemala, business groups warned.

Earlier in June, the country’s constitutional court upheld an injunction against the decision to grant a mining license for Fénix by the energy and mines ministry (MEM).

The ruling suspends mining operations at Fénix until the ministry completes a consultation with local indigenous communities.

But the American chamber of commerce in Guatemala (AmCham) said social and economic impact of the suspension was worrying.

“The investment is an important source of employment and with this action the state is sending negative messages to potential investors intending to move capital to Guatemala,” chamber president Juan Pablo Carrasco was quoted as saying by news website Periodico Digital Centroamericano y del Caribe.

Guatemala’s co-ordinating committee of agricultural, commercial, industrial and finance associations (CACIF) said the ruling further erodes legal certainty in the country.

“We urge the MEM to start the process of a consultation as soon as possible and in an objective and transparent manner,” the organization said on Twitter.

Solway is seeking clarification of the ruling.

Pan American Silver’s Escobal silver-lead-zinc mine and Kappes, Cassiday & Associates’ Tambor gold operation have also been suspended due to court rulings.