Case Study
Guatemala
Associated commodity
Associated commodity
Associated crime
Source
Nickel mine ordered to close by the Inter-American Court of Human Rights

The Solway Group's operations at the Fénix nickel mine in El Estor, Guatemala exemplifies how multinational mining corporations can leverage financial power to circumvent legal restrictions and manipulate local governance. When the Guatemalan Constitutional Court temporarily suspended mining operations in 2021 pending proper community consultation, leaked documents revealed that Solway had been quietly funding community leaders involved in the consultation process, transferring approximately US$5,000 monthly to influence outcomes. The company's tactics extended beyond simple bribery to include proposals for "buying leaders," creating "fictitious jobs," and even contemplating destructive measures like contaminating local crops to displace Indigenous Peoples and Local Communities from resource-rich land. Additionally, Solway maintained strategic relationships with Guatemalan officials, providing "Christmas gifts" to judges who later ruled in the company's favour, allowing them to continue operating, and making substantial payments to the National Civil Police who subsequently cracked down on community protests. In December 2023, the Inter-American Court of Human Rights ruled that the Guatemalan government violated the rights of the Indigenous Q’eqchi’ community by permitting the Fénix nickel mine to operate on their ancestral lands without proper consultation. The court ordered an immediate halt to mining activities, mandated the government to recognise Indigenous land rights, and required the establishment of a development fund for the affected community.

Keywords
Latin America, Guatemala, Minerals, Mining, Illegal Mining, Iplcs’ Rights, Corporate Negligence, Corruption & Bribery, Commodity Supply