Published: November 30, 2018 |

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Tahoe Resources Inc. released additional information regarding the company’s understanding of the Guatemalan Constitutional Court’s final resolution related to the Escobal mining license for its Escobal Mine.

“While we are disappointed that the Constitutional Court has made the decision to maintain the suspension of the Escobal mining license during the court ordered ILO 169 consultation process, we are pleased that a resolution has finally been reached after a prolonged period of inaction in the legal system. The final resolution provides a comprehensive path forward for the Ministry of Energy and Mines (MEM) to conduct the ILO 169 consultation as well as the specific requirements of each of the parties involved. Upon the completion of the consultation process and the other requirements outlined in the resolution, we expect to be in a position to restart operations at Escobal,” said Jim Voorhees, Tahoe Resources president and chief executive officer.

“It is our firm belief that a productive Escobal is in the best interest of all of our stakeholders, including the Government of Guatemala, our workforce, the local communities, the Xinka indigenous communities, our suppliers, and Tahoe’s shareholders. We will respect the court’s decision, and we will support MEM in fostering a thorough, productive, and good-faith consultation process with the goal of restarting operations at Escobal in a manner that is mutually agreeable to the Xinka indigenous communities included in the ILO 169 process. We also intend to use this time to engage with other community members who are interested in productive dialogue with the Company. Once this process is complete, we look forward to restarting operations at Escobal and becoming a contributing member of the Guatemalan economy once again,” added Voorhees.

INFORMATION REGARDING THE CONSULTATION PROCESS

The Guatemalan Constitutional Court’s resolution outlines a four stage consultation process that provides a legal path towards restarting the Escobal mine. The four stages include: review, pre-consultation, consultation, and Supreme Court verification.

Stage 1 – Review
Before the consultation can start, the Ministry of Environment (MARN) is required to work with the original consultant responsible for Escobal’s environmental impact study (EIS) issued in 2011 in order to reconfirm the area of influence. The original EIS defined the area of influence as 10 communities within the municipality of San Rafael Las Flores, where the Escobal mine is located. Upon their review and reconfirmation of the area of influence, MARN is required to issue a formal resolution that defines the area to be used by the Ministry of Energy and Mines (MEM) during the ILO 169 consultation process.

Stage 2 – Pre-Consultation
The formal consultation process starts with the pre-consultation stage.The primary purpose of the pre-consultation stage is to define and agree to the terms, timeline and mechanisms under which the consultation will take place. This stage is to be moderated by MEM and to include various government agencies, ministries, academic institutions and community leaders along with Minera San Rafael (MSR) representatives.

Stage 3 – ILO 169 Consultation
During the consultation stage, the formal dialogue process takes place, in accordance with the terms agreed to during Stage 2. The principal counterparties involved in the dialogue process during this stage are limited to three: the Xinka indigenous communities who reside in the project’s area of influence (or their designated representatives), MSR’s representatives, and MEM, as the process coordinator.

Stage 4 – Supreme Court Verification
Upon conclusion of the consultation process, MEM is required to submit the details and final results of the consultation process to the Guatemalan Supreme Court. The Supreme Court will then hold a hearing to certify with all three parties that the ILO 169 consultation process as outlined in the Constitutional Court’s resolution has been followed. After verification by the Supreme Court of the consultation process and the completion of other studies requested in the resolution, the Escobal license can be reinstated and the Company will be permitted to restart operations.

About Tahoe Resources
Tahoe Resources is a mid-tier precious metals company with a diverse portfolio of mines and projects in Canada, Guatemala and Peru. Tahoe is led by experienced mining professionals dedicated to creating sustainable value for all of its stakeholders through responsible mining.

To stop by Tahoe Resources’ website, CLICK HERE

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