Monday , March 1 2021

Tahoe Resources, a parent company of Minera San Rafael, will buy Pan American Silver



San-Rafael mine El Escobal's operation was stopped at the KT on July 5, 2017, in order to re-perform the functions, a public consultation should take place. (Photo, Prince Free: Hemeroteca PL).
San-Rafael mine El Escobal's operation was stopped at the KT on July 5, 2017, in order to re-perform the functions, a public consultation should take place. (Photo, Prince Free: Hemeroteca PL).

Tahoe resources and pan American silver made the company more interesting while the MSR discovered it in Guatemala with a statement.

However, the shareholders of both companies still have to agree on what the merger will be completed in January 2019, it was added.

Pan Americans are the second largest company in the silver mine world with operations in Mexico, Peru, Bolivia and Argentina.

In addition, "he has more than 25 years of experience working with mines in Latin America and has verifiable liability operations and positive relationships with communities and governments," added a newsletter.

The decision was based on the continuation of the strengthening of the El Escobal mines owned by Minera San Rafael.

In addition, we are convinced that in the long run we will continue to create value in both communities, co-workers, shareholders and in the country, added to the mining company.

Despite the announcement of this deal, Minera San Rafael's operation in Guatemala will not change in the near future.

The company announced that it will continue to support and participate in the consultation process, based on ILO agreement No. 169 for the El Escobal area of ​​influence.

The Consultation was commissioned by the Constitutional Court (CC) and will be carried out by the Ministry of Energy and Mines (MEM).

The Guatemalan mining company will continue its community-enhancement plan and a peaceful solution to Casillas, Santa Rosa.

In addition, they stated that they would continue implementing environmental management and development programs in preparation for the restructuring of El Escobal, added Minera San Rafael, as they continued their consultations.

"Pan Americans plan to support the commitments made by Minera San Rafael in the context of the consultation process," as well as ongoing efforts, as well as all the necessary efforts to strengthen the relationship and confidence that will allow El Escobal to restart.

Case data

  • Starting from November 14, the mining company did not operate 497 days, as the suspension was set on July 5, 2017.
  • The losses in the economy are 5.1 million people a day, which by that date reaches 53 thousand.
  • According to recent company data, approximately Q550 million of that amount corresponds to taxes and royalties
  • Minera San Rafael is owned by the Canadian company Tahoe Resources, while 58% of shares are in US investors.
  • According to company spokeswoman Andrés Dávila, the impact on Tahoe is that more than half of the company's value has been lost due to this case. Shares were sold from almost USD 27 to USD 2.5 for an example.

Query

The CC, by September 3, 2018, urgently consulted San Rafael Mine in the vicinity of local communities so that it could continue to operate.

However, he first demanded several reports and studies on the protection of the environment and heritage and health authorities. Among them, the impact of the El Escobal project should be reviewed.

The Xinca Parliament, the Guatemalan Environmental and Social Action Center (Calas) and representatives of the mining industry's suppliers asked the CC to clarify and extend the case.

The MEM should start preparing the pre-consultation process and further consultations.

This court decided not to set a specific deadline for discussion with indigenous peoples.

While mining companies and suppliers had been waiting for a deadline, Quilbin Jiménez, a lawyer from the Xilc parliament, said that the deadline could not be determined, as there are examples of dynamic processes in the international benchmarking system and adds that, according to international standards, it can not force indigenous peoples, but it must respect its times and procedures.

Related content:

> CC retains the position of not setting up a consultation community term

> For these reasons, CC processed operations at San Rafael mine

> Mine stopping affects the global market


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