Legal investigation into legitimacy of mining licenses of Montreal-based Central America Nickel in Guatemala
Minister confirms mining irregularities in Livingston
By Simon Antonio Ramon, June 20, 2025, Prensa Comunitaria
(translation by Rights Action)
https://prensacomunitaria.org/2025/06/ministra-confirma-irregularidades-de-mineras-en-livingston-pero-no-cancelaran-licencias/
The Ministry of Environment and Natural Resources (MARN) determined that eight exploration licenses and two mining exploitation licenses located in Sierra Santa Cruz, in the municipality of Livingston, have irregularities. These were granted in 2023 during the government of Alejandro Giammattei, however, the Minister of Environment Patricia Orantes avoided to say if they will be cancelled.
Orantes stated that the investigation of these 10 licenses began after a summons in the Congress of the Republic with district deputies of Izabal, the MARN, the Ministry of Energy and Mines (MEM) and authorities of the 54 communities of Livingston, where she committed to investigate whether the procedure through which the licenses were granted followed due process.
The minister's commitment extended to an on-site inspection of the projects. “Most of the projects did not comply with the environmental evaluation and control regulation requirement of having the opinion of the Authority for the Sustainable Management of Lake Izabal (AMASURLI),” said the official when mentioning one of the irregularities found.
The head of MARN also noted that one of the companies did not carry out the second notice in the Q'eqchi' language. In addition to this, the eight exploration projects that obtained the license did not obtain the MEM's opinion, an obligatory requirement.
The companies that own the environmental licenses are Río Nickel, S.A. and Nichromet, Guatemalan subsidiaries of Central American Nickel (CAN), a Canadian company that recently reactivated activities in the last year of former President Giammattei.
It was during the government of former president Giammattei that the Russian-Swiss mining companies operating in El Estor, in the department of Izabal, were sanctioned with the Magnitsky Act by the US Treasury Department, accused of benefiting from corruption in the mining sector to obtain licenses. Also the previous administration, the ex-minister of mining Alberto Pimentel Mata, his wife Ana Isabel Carrillo Fabián, the ex-vice-minister of mining Oscar Pérez Ramírez, and the ex-minister of Interior Gendri Reyes were also sanctioned for corruption by the United States in 2023.
MARN's findings
During the on-site inspection it was discovered that the companies were operating illegally at a depth of 10 meters, so a complaint was filed on June 19. "We found three projects with open calicatas (excavations in the ground) to exploit. This is openly illegal, because none of the 10 projects has authorization from the Ministry of Energy and Mines to explore or exploit," said the minister. According to the Ministry, these findings were reported to the local people and the companies.
For environmental lawyer Rafael Maldonado, MARN is taking too long to take action on the findings of the investigation. "When it conducted inspections in May and found that there were environmental risks and violations of the right to a healthy environment, Article 31 of the Law for the Protection and Improvement of the Environment establishes that one of the sanctions is immediate suspension [...].
Licenses cannot be granted without prior consultation with the people
According to Maldonado, the communication from MARN has been ambiguous and confusing about its role and that of MEM, regarding the phase in which these licenses are in. At the moment the exploitation process begins, the process of mandatory consultation must be initiated following the ruling of the Xinka people in 2018, when the Constitutional Court (CC) prohibited the Minister of Energy and Mines from issuing an exploitation license without prior consultation.
“I cannot anticipate what will happen”
At the June 18 meeting in Livingston, Vice Minister Rodas promised the population that on July 30, MARN will issue another report on the legal and administrative consequences of the non-compliance found.
Orantes indicated that "cancellation is not the only possibility. There are sanctions, license suspensions, there are fines, there are crimes that can be investigated by the MP. We filed a complaint yesterday with the MP. I cannot anticipate what is going to happen, it is like anticipating the result of a sentence after a trial", said the minister about the possible consequences of the irregularities in the environmental licenses.
When asked about the actions taken by MEM in Livingston, Minister Víctor Hugo Ventura answered "we have not issued any license. It seems to me that what could be causing the noise are some agents who could be doing an illegal activity”.
Protests and repression in Livingston
On June 16, MARN informed all parties, residents and company, about the findings of the field inspection carried out last May. The three Izabal district deputies were present at the meeting. The ministers did not attend in person and Orantes said that the important thing was that they fulfilled their commitment to deliver the report. However, the absence of Orantes and Ventura caused the communities to take the main road to Petén, because in the report the MARN was not clear on whether or not these would be cancelled.
After more than 48 hours of occupation, on Wednesday, June 18, the Vice-Minister of Environment, Rodrigo Rodas, appeared for a dialogue with the representatives of the communities in the sub-mayor's office of Livingston, Izabal.
In the meeting, the main demand to MARN was the cancellation of the licenses. According to Orantes, although they are listening to this demand, they need to follow due process: “the rights granted are not taken away just because of pressure, but due process must be followed”.
While Vice Minister Rodas was talking with the community leaders, another group of settlers, who according to the Minister were not part of the resistance, approached the site and cut the electricity. They also allegedly vandalized institutional vehicles. The videos were shown at the press conference. This is why, according to the authorities, the Special Police Forces (FEP) of the National Civil Police (PNC) had to intervene with tear gas.
In a citation on June 19 in Congress, the Vice Minister of the Interior, José Portillo, said that there were arrests in the occupation of the highway to Petén, by San Antonio Sejá, to ensure free movement. “Five people were captured who have been generating these blockades and also a person who was firing shots,” said Portillo.
In the police repression of June 18 in Livingston, reporter Raymundo Amador, who was transmitting the events for “El Informador Veraz”, was shot in the forehead by a tear gas bomb and had to be transferred to Morales for medical assistance.
In this case, the Secretary of Social Communication of the Presidency, Santiago Palomo, said that the Ministry of the Interior through the General Inspectorate of the PNC will review the actions of the elements of the FEP to verify if the protocol established in these situations was violated.
Rights Action commentary
Corrupt government of President Giammattei
The Q’eqchi’ people of this region and Rio Dulce community members find it incredible that yet another mining company arrives in the Q’eqchi region – this time, Central America Nickel, claiming to have mining licenses, when they knew nothing about this. They are aware that these licenses were granted during the government of president Alejandro Giammattei who is directly implicated in corruption schemes with mining companies in this region and allegedly received financial benefits from drug traffickers.
Hypocrisy in U.S. and Canada
The previous, disgraced President Giammattei is now barred from entering the U.S. and Canada due to this alleged corruption. The hypocrisy is that the U.S. and Canada imposed sanctions on Giammattei only after he left office in January 2024. During his entire time in office, the U.S. and Canada referred to the Guatemalan government as a “democratic ally”, maintaining and pushing for expanded North American investments and business interests in the country. (More information: Rights Action, April 10, 2025)
60-year nightmare of mining in Q’eqchi’ territories
1964-2004: INCO (Canadian owner) and EXMIBAL (subsidiary in Guatemala)
2004-2008: Skye Resources (Canadian, incorporated by former INCO directors) and CGN (new name of EXMIBAL)
2008-2011: Hudbay Minerals (Canadian), bought Fenix mine and CGN mine from Skye
2011-Present: Solway Investment Group (Swiss) and CGN/ PRONICO (a second subsidiary company)
2024-Present: Fenix Nickel Company (USA), a new subsidiary of Solway Investment Group
2024-Present: Central America Nickel (Canada) and Rio Niquel and NICHROMET (Guatemala subsidiaries)
Toronto protest coordinated by MISN Mining Injustice Solidarity Network
Occurring in waves over this entire time, mining in the Q’eqchi’ territories of eastern Guatemala has been characterized by corruption, forced evictions and land theft, human rights violations including killings, rapes, lawfare (criminalizing community defenders), environmental and health harms and, for the most part, complete impunity in Guatemala and in the home countries of the companies (mainly Canada, also Switzerland and most recently the U.S.).
The recent settlements of landmark Hudbay Minerals lawsuits are a hugely important exception to this almost iron clad norm of impunity.
Call by Q’eqchi’ people
Rights Action supports this call of the Q’eqchi’ people for:
Suspension: Immediate suspension of all mining operations in Q'eqchi' region of El Estor, Panzos, Livingston.
Investigatory commission: Formation of a commission to investigate violences and harms of mining against Q’eqchi’ people and the environment between 2004-2025.
Reparations: Preparation of a compensation plan for people and communities that suffered the violences and harms.
Consultation process: Then, implementation of a consultation process, based on prior and complete information in the Q'eqchi' language to decide if mining operations might continue in the future.
Rights Action calls on organizations and people - particularly in Canada, Switzerland and the U.S., home to the mining companies – to initiate, or continue with your education and activism work to pressure our governments, and our mining companies to stop all mining, and to comply with these fair and balanced demands of the Q’eqchi’ people.
Canadian Embassy in Guatemala
Ambassador Olivier Jacques
13 Calle 8-44 Zone 10, Edificio Edyma Plaza, Guatemala
gtmla@international.gc.ca / http://www.guatemala.gc.ca
+(502) 2363-4348
https://www.facebook.com/CanadainGuatemala
https://twitter.com/CanEmbGuatemala
Central America Nickel Inc.
1010 Sherbrooke W., Suite 2200
Montreal QC, H3A 2R7
Mark Billings, CEO, mb@centralamericanickel.com, info@centralamericanickel.com
Dan Hrushewsky, Chairman of the Board
https://www.centralamericanickeluaex.com