European Report Features Tahoe Resources as a ‘Harmful Investment’, Reveals Billion Dollar Funds Have Divested


February 9, 2017

(Ottawa/Reno/Guatemala) Tahoe Resources is one of fourteen companies featured as a dangerous investment in the fifth edition of ‘Dirty Profits’ launched today in Hamburg, Germany and edited by the organization Facing Finance.

The publication identifies two billion-dollar European pension funds that have divested from the company, the Netherlands’ Pensioenfonds (PGB) and Norway’s Norges Bank Investment Management. The group calls for binding regulations on financial institutions and for the elimination of this and other harmful investments from their portfolios.

Problems cited include Tahoe Resources’ lack of respect for communities that have peacefully and democratically expressed their opposition to its Escobal mine in southeastern Guatemala, and a campaign of persecution through unfounded legal cases, violent incidents and militarization.

“The Guatemalan state together with the company criminalize us for defending our territory, especially those who defend the environment and human rights. But the state is corrupt, it sells out for money and criminalizes people, accusing them of serious crimes, so they remain silent. But, we are hard-working farmers and instead of being silenced, we continue our struggle even more earnestly than before because this is for our children,” Oswaldo Anavisca Morales, member of the Mataquescuintla Civil Society Group in the department of Jalapa.

The article about Tahoe Resources further describes how the company was granted a permit to put the mine into operation with disregard for over 200 individual complaints submitted against the license on the basis of environmental concerns. The officials responsible for this decision resigned in mid-2015 over serious allegations of corruption.

“What really hurts is how the [state] defends these companies, like the Ministry of Energy and Mines. […] I don’t know why large investors and authorities don’t open their eyes to see how [the company] doesn’t respect us as Guatemalans, or as human beings,” Julio Osorio, Coordinator of the Diocese Council for the Defense of Nature (CODIDENA) for the municipality of Nueva Santa Rosa in the department of Santa Rosa.

Loss of water supplies, contamination, as well as social divisions and conflicts are just some of the impacts that concern another member of CODIDENA. “We call on investors to put their hands on their hearts, to become aware, and to not invest their money in projects which cause death. We want life giving projects that generate work for our women and men, and especially for our youth,” remarked Paty Gregorio De Arriaga from the municipality of Nueva Santa Rosa.

Tahoe Resources and the state have imposed the Escobal project, and other concessions in the region, despite 18 municipal and village level referenda, organized by CODIDENA and other local groups, in which more than 55,000 people in seven municipalities voted against mining, since 2011.

The British Columbia Court of Appeal recently acknowledged the power imbalance that works to favour corporations in Guatemala in a precedent-setting decision over a suit brought for violence at the Escobal mine.

The January 2017 decision stated: “there is some measurable risk that the appellants will encounter difficulty in receiving a fair trial against a powerful international company whose mining interests in Guatemala align with the political interests of the Guatemalan state. This factor points away from Guatemala as the more appropriate forum.”

The Canadian Pension Plan which held $49 million of shares in Tahoe Resources in 2014, no longer lists any share holdings in the company. The U.S. investment management firm, TIAA-CREF, on the other hand, recently increased its holdings in Tahoe Resources, now worth more than US$12 million dollars.

Find the Facing Finance “Dirty Profits 5” publication online here.
Find the PDF press release here.


Norwegian Fund Divests from Tahoe Resources, Canadian and U.S. Investors Urged to Follow Suit

Tuesday, February 3, 2015

(Ottawa/Guatemala) North American shareholders in Tahoe Resources should follow the Norway’s Council on Ethics’s lead and divest say Canadian and U.S. organizations. They urge Canadian and U.S. investors to make use of a report published last week that recommends the exclusion of Tahoe Resources from the from the Government Pension Fund Global (GPFG) portfolio due to “unacceptable risk of the company contributing to serious human rights violations through its operation” at the Escobal silver mine in southeastern Guatemala.

After considerable investigation, including communications with Tahoe Resources and information gathered from diverse sources such as the UN High Commissioner for Human Rights in Guatemala, the Norwegian Council determined that the project poses a high level of risk given insufficient consultation processes, considerable resistance to the mine, inadequate measures to avoid human and Indigenous rights abuses and militarization of the area.

“With this report in hand, it should be a no brainer for U.S. and Canadian investors to drop their shares in this company whose operations represent a tremendous risk to the lives and wellbeing of thousands of residents in communities in San Rafael Las Flores and area,” remarks Jen Moore Latin America Program Coordinator at MiningWatch Canada.

The Council did not believe Tahoe’s claims that the apparent calm around the Escobal mine is a sign of support for the mine. The report reads: “…the company’s statement that the situation in and around SRLF is now more peaceful than in the months preceding the state of emergency [in May 2013] is probably correct. As the Council understands it, this is due to the militarization occasioned by the conflict.” The Council attributes militarization with breaking up organized resistance and a temporary stoppage of local consultation processes.

“Even before the military state of siege was imposed on municipalities, military presence and repressive tactics were ramped up, in part due to a so-called ‘development’ office in San Rafael Las Flores with backing from Tahoe and oversight from a military colonel. It is encouraging that the Norwegian Council on Ethics recognizes that what has been growing in the area is fear, not support for this project,” comments Ellen Moore from the Network for Solidarity with the People of Guatemala (NISGUA).

Before the state of siege, communities in the area held fourteen referenda, in which tens of thousands of people in the six municipalities closest to the project voted against the Escobal mine given their concerns over current and potential environmental and social impacts. A pilot project in San Rafael Las Flores overseen by the National Security Commission and referred to as the “Inter-institutional Group on Mining Affairs” was initiated in March 2013. As well, since the siege, a permanent military presence has been established in the area.

The Council also found that Tahoe failed to take adequate steps to prevent further abuses after private security guards shot at peaceful protesters outside the mine gate on April 27, 2013. Two separate lawsuits against Tahoe’s then head of security and the company in connection with this incident are ongoing in Guatemala and Canada respectively. Overall, the Council finds that Tahoe’s policies and training standards are not enough to guarantee that the company will not continue contributing to human rights violations.

The Canadian Pension Plan most recently reported that as of March 31, 2014 it holds $49 million CAD worth of shares in Tahoe Resources. As of 2013, U.S. based TIAA-CREF, considered to be a socially responsible financial services company specializing in the needs of the non-profit and education sector, held some $5 million USD worth of shares.

Online letters can be sent calling on the CPPIB to divest here and to the TIAA-CREF here. A new map illustrates the relationship between company holdings and affected communities.

Jen Moore, MiningWatch Canada, jen(at), (613) 569-3439
Ellen Moore, Network in Solidarity with the People of Guatemala (NISGUA), ellen(at), (510) 763-1403

See a backgrounder on Tahoe Resources for more information.

Guatemalan communities are saying no to Tahoe Resources — It’s time for U.S. and Canadian investors to say NO too! 

U.S. and Canadian listed mining company Tahoe Resources has one mine operation, the Escobal silver mine in southeastern Guatemala. It is widely opposed by local communities and there has been serious violence and repression in connection with its operations, which are now the subject of pending legal actions.

Norway’s Council on Ethics for the Government Pension Fund Global (GPFG) recently confirmed many of these concerns in a report that urges the exclusion of Tahoe Resources from the fund’s portfolio. The Council cited “unacceptable risk of the company contributing to serious human rights violations through its operation” in southeastern Guatemala.

Goldcorp, known for ongoing human rights violations at the Marlin mine in Guatemala, holds 40% of Tahoe Resources’ shares.

Tahoe Resources is a dangerous investment. Here’s why:

  • Tens of thousands of people have voted against mining in the area around Tahoe’s project, where prominent opponents have been met with deadly violence. In an April 2014 attack seven kilometers from the mine, youth resistance leader, Topacio Reynoso, was shot and killed. Her father was seriously injured. In just one of fourteen local referenda to date – in Topacio Reynoso’s hometown of Mataquesquintla – over half of eligible voters participated and 96% said no to mining.
  • The company and former employees are facing lawsuits for their role in violence at the mine site. In 2013, mine private security shot and injured seven men, including two minors. Alberto Rotondo is scheduled to stand trial in Guatemala for his alleged role in violence at the Escobal mine when he was head of security for Tahoe. Also, a civil lawsuit filed in Canada against the company for negligence and battery in connection with April 2013 shooting is proceeding to its first hearing this spring about where the case should be heard.
  • Government military tactics are used to repress local dissent. A pilot project aimed at suppressing mining opposition was initiated in San Rafael Las Flores with the support of Tahoe Resources. The “Inter-institutional Group on Mining Affairs,” frames opposition to mining as a national security threat and is overseen by Coronel Ricardo Bustamante, Technical Secretary for the National Security Commission. There has been heightened military presence in the area ever since a state of siege was ordered in May 2013 in three of the municipalities that had voted against the mine.
  • Criminalization increased as Tahoe ramped up toward production in early 2014. Since 2012, nearly 90 legal cases have been filed against people opposed to the project. Tahoe CEO Kevin McArthur has now been summoned twice to testify in Guatemalan courts about Tahoe’s criminalization practices.
  • Tahoe’s mining concessions – where it hopes to continue expanding its project – pose a threat to Indigenous communities, communities in resistance and protected areas. A new map shows that almost half of Tahoe’s exploration and reconnaissance concessions directly impact or border Indigenous communities. Exploration licenses also directly affect communities that have demonstrated overwhelming opposition to Tahoe’s operations, such as San Juan Bosco and Mataquescuintla.
Call on U.S. based TIAA-CREF and the Canada Pension Plan to divest from Tahoe Resources! 
U.S. residents click here
Canadian residents click here