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Article

12 Aug 2016

Author:
Marco Chown Oven, The Star (Canada)

Canadian company tried to stop referendum on mine in Guatemala

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A Toronto legal aid group is calling on the American securities regulator to investigate a Canadian mining company for failing to disclose a secret lawsuit aimed at preventing a referendum on its silver mine. Even though the 2011 suit was rejected by the Constitutional Court of Guatemala — permitting a vote that overwhelmingly rejected the mine — local human rights groups say th[at]...Tahoe Resources failed in its legal obligation to disclose the lawsuit to investors...Since Tahoe’s stock trades in both Toronto and New York, Imai, who sits on the board of York’s Justice and Corporate Accountability Project, chose to file the complaint at the U.S. Securities and Exchange Commission because he said it has more rigorous standards. Imai hopes the report will draw investors’ attention to Tahoe’s practices, and may lead some to follow the Norwegian Government Pension Fund’s decision to divest from the stock. The report alleges the lawsuit was one of four filed at Guatemala’s highest court by Tahoe and its supporters and calls into question the company’s commitment to securing local indigenous support for the mine — a standard that is becoming the norm at resource development projects on indigenous territory in Canada and abroad...

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