(Reuters) – Tahoe Resources Inc will work closely with Guatemalan officials and locals to resolve a dispute and resume operations at its flagship Escobal silver mine, one of the world’s largest, Chief Executive Jim Voorhees said on Monday.
Guatemala’s Constitutional Court last week upheld the suspension of licenses at Escobal mine.
The ruling was “disappointing” and “not the outcome we expected,” Voorhees told investors on a Monday conference call to discuss the dispute, but added: “We are focused on engaging in good faith.”
The country’s Supreme Court suspended the licenses in July last year after an anti-mining organization appealed against the country’s Ministry of Energy and Mines. The appeal alleged that the ministry did not consult with the Xinca indigenous people before awarding the Escobal mining license to Tahoe.
Reno, Nevada-based Tahoe has argued that the mine is a big contributor to the country’s economy. The ruling means Tahoe must return to the Xinca for consultations in order to try to regain its license to operate.