Guatemala has approved the restart of Solway Investment Group’s nickel mining operations, following the U.S. lifting sanctions on its local subsidiaries. This decision marks a significant development for the mining industry in the region.
Approval and Restart Plans
Julio Luna, head of Guatemala’s mining department, announced, “We have authorized the issuance of export credentials for Procesadora de Níquel de Izabal (Pronico).” He added, “With these credentials, Pronico can now restart its processing plant, source raw materials, and start selling the processed nickel.”
This approval is a crucial step for both Pronico and its partner, Compañía Guatemalteca de Níquel (CGN). The two companies had to halt their operations in March 2023 after the U.S. imposed sanctions for alleged corruption and influence peddling. CGN manages the mining, while Pronico handles the processing and export.
Sanctions and Financial Planning
The U.S. also sanctioned another Solway-related company, Mayaníquel, in 2022. However, with the sanctions lifted in January 2024, Pronico was left waiting for its export permits.
Pronico plans to resume ferronickel production within 8 to 10 months, provided it secures international financing. This funding will support plant maintenance and necessary work at the mine. Marco Aceituno, Pronico’s president since 2023, emphasized that the export license is a vital first step toward restarting operations.
Investment and Employment in Guatemala
Although Pronico has not yet produced any nickel, the new license offers the stability needed to attract investment. The company has introduced new anti-corruption measures and improved human rights practices under international expert supervision.
Aceituno noted that restarting the processing plant will require more than $80 million in investment. Pronico also plans to create over 1,300 jobs in the next 10 to 12 months, providing a significant boost to local employment.
Controversies and Challenges
The mine, located in El Estor and Los Amates on Guatemala’s Caribbean coast, has faced significant controversy. The region has seen clashes between police and indigenous groups opposed to mining due to environmental concerns. In November 2021, then-President Alejandro Giammattei declared a state of emergency in response to protests that blocked mining trucks. The conflict intensified following a fisherman’s death in 2017.
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In late 2023, the Inter-American Court of Human Rights ruled that Guatemala had violated the rights of the Q’eqchi’ Mayan community by allowing the Fenix mine’s operation on their ancestral lands. This ruling added further complexity to the situation surrounding the mine.
Outlook for the Mining Sector
Despite these challenges, the recent approval for Pronico to resume operations brings renewed hope to a sector struggling with social unrest, regulatory uncertainty, and bureaucratic hurdles. This development has the potential to revitalize Guatemala’s mining industry and support the local economy, provided that the company adheres to ethical practices and engages meaningfully with affected communities.
