Indigenous group says ‘no’ to Pan American’s Escobal mine in Guatemala

[Ben Graham]

A Vancouver group on Thursday delivered a petition with more than 6,000 signatures urging Pan American Silver (NYSE, TSX: PAAS) to respect the Xinka Indigenous people’s decision against restarting the Escobal silver mine in Guatemala.

“This is not the first time Canadian allies have had to come in person to the company’s headquarters to ensure Pan American Silver cannot ignore the message from the Xinka people,” activist Angus Wong said in a release Thursday. “The Xinka People have said no to the mine and to characterize the process as a negotiation of any kind is untrue.”

The company told MINING.COM sister publication The Northern Miner it would not comment beyond the current government‑led consultation under International Labour Organization Convention 169 (ILO 169). The company advised the individuals delivering the petition that it could arrange a meeting at a mutually convenient time, according to spokesperson Siren Fisekci.

The stakes are significant for both sides. Local and international non-government organizations frame Escobal as a test of free, prior and informed consent and environmental safeguards under ILO 169, citing a history of social conflict around the project. Pan American wants access to a project ranked among the world’s largest primary silver mines, which was suspended from operations in 2017.

‘Community threat’

The petition followed comments in May by the Xinka Parliament that denied consent for Escobal’s restart after a multi‑year court‑mandated process. “If this project continues, we would practically be condemned to disappear as a people,” spokesperson for the Xinka Parliament, Marta Muñoz, said in the May statement.

The Xinka cited risks to water, culture and territory and called for Escobal’s permanent closure.

The Northern Miner in 2017 reported how blockaders to the Escobal mine had opened fire on a helicopter carrying supplies.

Before licences were suspended in 2017, the mine operated for three years under former owner Tahoe Resources, churning out 20 million oz. silver per year at all-in sustaining costs below $10 per ounce.

Escobal hosts 24.7 million tonnes of proven and probable reserves at 334 grams silver per tonne for 264.5 million oz. of metal, and another 16.5 million measured and indicated tonnes at 208 grams silver per tonne for 110.1 million oz. of the grey metal.

Consultation ongoing

Pan American’s disclosures this year stressed that the consultation process remains in the hands of Guatemala’s Ministry of Energy and Mines (MEM). Pan American has not stated any restart timeline and MEM has not provided a date to complete the process.

Pan American acquired Escobal when it bought Tahoe Resources in 2018.The company “fully respects” the ILO 169 process, according to prior disclosures, and asserts that any decision on reinstating the licence rests with Guatemalan authorities following consultation.

Backers of the petition said the company had failed to properly acknowledge the Xinka decision.