Canadian mining company Tahoe Resources Inc. (NYSE: TAHO) has had two mining permits suspended by a top Guatemalan Court for failing to properly consult the indigenous peoples on the effects of their mining operations.
August 28th has been set as the date for the ordeal to head to court, as both sides will present arguments over the alleged lack of environmental debriefing. The permits were for the company’s Escobal unit, one of the largest silver mines in the world, and Juan Bosco, both of which have been suspended since July 5th. As a result of these permit holds, the company is working on revising their multi-year guidance.
The Canadian miner is down 18% and is trading at three times its average volume.
The continual unrest associated with the environmental impact of the mines has protestors blocking the road to the Escobal mine and Kelvin Jimenez, a lawyer representing Parlamento Xinca, is pleased with the court’s decision, “We celebrate the decision, and we are ready.” He will have a chance to argue his case against Tahoe’s representatives in court three days from now. Tahoe’s lawyers on the other hand, will not go lightly, “We will continue exhausting all the legal avenues that Guatemalan law permits us,” said Andres Davila, a spokesman for Tahoe local unit, San Rafael.