Loading ...Canadian miner Tahoe Resources (TSX:THO)(NYSE:TAHO) suspended its quarterly dividend of $0.02 a share and deferred its full-year production guidance in response to a ruling by Guatemala’s Supreme Court to suspend the license for the company’s flagship Escobal operation.
The tribunal’s decision was taken last month and it supports a claim brought against the country’s Ministry of Energy and Mines by an environmentalist group called CALAS. The activists allege the Ministry violated the local indigenous people’s right to informed consultation prior to granting the mining license to Tahoe’s Guatemalan subsidiary.
Following the receipt of the legal order, the Vancouver-based firm placed the mine “on hold.”
On top of this, a two-month-long blockade on the primary road that connects Guatemala City to Escobal is causing delays in the transport of materials in and out of the silver mine, which is the world’s third largest.