Tahoe Resources’ Administrative Manager detained on charges of industrial contamination

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April 15, 2015

(Guatemala City/Ottawa) Monday, a Guatemalan judge denied bail to the Administrative Manager and Legal Representative, Carlos Roberto Morales Monzón, of Tahoe Resources’ subsidiary, Minera San Rafael S.A., and ordered him to pre-trial detention on charges of industrial contamination. The Guatemala’s Public Prosecutors’ Office for Crimes Against the Environment launched an investigation in 2012 into the company’s contamination of water sources near its Escobal silver mine. The trial date is set for June 12.

Tuesday, Tahoe Resources issued a press release downplaying the decision and Carlos Roberto Morales Monzón’s role in the company, referring to him as an “employee”, not the “mine manager”. Nonetheless, a February 2013 Constitutional Court decision refers to Mr. Morales Monzón as the Administrative Manager and Legal Representative for Minera San Rafael. The company also said it will appeal Monday’s decision.

“This is remarkable. Tahoe Resources now has two managers from the Escobal mine in pre-trial detention, beginning two years ago with the company’s former security manager who was detained on charges of assault and obstruction of justice. It will be even more remarkable if these cases continue to proceed,” stated Ellen Moore for the Network in Solidarity with the People of Guatemala.

The criminal case, which carries a sentence of up to eight years in prison if convicted, is the result of a complaint that the Center for Social Legal Action in Guatemala (CALAS) filed for contamination of the Escobal Creek and the El Dorado River, located near the community of Los Planes, just steps from Tahoe’s project. The alleged contamination occurred while the project was still in the exploration phase.

The Guatemalan Ministry of Health confirmed that a discharge of water from the mine installations was contaminated with suspended solids. Around this same time, local residents were reporting that contamination was affecting water used for crop irrigation. Since then, community members have been denouncing increasing scarcity of water in the area immediately surrounding the project, similarly believed to be a result of Tahoe’s mine. This latter concern is not part of the legal process.

“With several legal processes underway against the company and its affiliates, along with ongoing community resistance to the mine and its expansion plans, it should be ever more clear to investors that this company is a dangerous investment,” commented Jen Moore for MiningWatch Canada.

The extent of local concern over negative environmental and social impacts, present and future, of the mine on water supplies and community wellbeing has generated widespread community opposition to the project. As of March 2013, tens of thousands had voted against the project in local plebiscites and residents had filed more than 250 specific complaints against the granting of Tahoe’s final permitting license. The Ministry of Mines and Energy dismissed the complaints without consideration immediately before granting the company a license in April 2013. A lawsuit is pending in Guatemala’s Constitutional Court for lack of due process in this regard, which has raised questions about the legality of Tahoe’s exploitation license.

Protests that emerged in the wake of the Ministry’s hasty decision to grant Tahoe’s final permit faced police repression and an armed attack by company security guards on April 27, 2013 that left seven men injured. This latter event is the subject of a criminal case in Guatemalan courts against Alberto Rotondo, former security manager for Tahoe Resources, accused of having ordered and then attempted to cover up the attack. The seven men have also brought a civil suit against Tahoe Resources in British Columbia for negligence and battery in connection with the shooting.

In January 2015, the Norwegian Ethical Fund recommended against investing in Tahoe Resources, citing “unacceptable risk of the company contributing to serious human rights violations through its operation” at the Escobal silver mine in southeastern Guatemala.

Contacts:

  • Ellen Moore, Network in Solidarity with the People of Guatemala (NISGUA), ellen(at)nisgua.org, (510) 868-0612
  • Jackie McVicar, Maritimes-Guatemala Breaking the Silence Network, jackiebtsguatemala(at)gmail.com, (502) 4824-0637
  • Jen Moore, MiningWatch Canada, jen(at)miningwatch.ca, (613) 569-3439

For more information about this situation, follow tahoeontrial.net.