Tahoe Resources Inc (NYSE:TAHO) investors cheer the news that the Guatemalan Supreme Court reinstated the license of the company’s flagship Escobal mine. In reaction, shares of the precious metals miner are up nearly 40% in Monday’s trading session.
To recap, in late May, an anti-mining group (CALAS) filed a claim against Guatemala’s Ministry of Energy and Mines (MEM), alleging that the Ministry didn’t consult local groups before awarding Tahoe Resources the license for the Escobal silver mine. In early July, the Supreme Court of Guatemala issued a provisional decision by ordering the temporary suspension of the license to operate the Escobal mine while the court reviews the claims. Then, the company alerted shareholders that its latest appeal to the court — that would have allowed operations at Escobal to continue until the situation was resolved in court — is expected to be denied.
Today’s decision reverses the Supreme Court’s preliminary decision to suspend the company’s license in connection with an action brought by CALAS.
Tahoe CEO Ron Clayton commented: “We are pleased that the Supreme Court of Guatemala has abided by legal precedent and restored MSR’s license to operate the Escobal mine. The Company respects the rights of indigenous people in all jurisdictions in which we operate and are always willing to engage with any community members in those jurisdictions. We remain focused on peacefully resolving the blockade at Casillas. While we support the rights of all peoples to peacefully protest, we do not support the illegal blockage of public highway by non-locals which has had a devastating economic impact on our employees, contractors and communities. Once the road is re-opened at Casillas, we will resume full operations without disruption and put our valued employees and vendors back to work, support the economy of our local communities and return value to our shareholders.”
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Tahoe Resources engages in the acquisition, exploration and development of mineral properties. It operates the Escobal silver mine in Guatemala and La Arena gold mine in Peru and is the Shahuindo project, also in Peru.