Vancouver’s largest gold miner, Goldcorp Inc. (TSX:G), has been informed by the Guatemalan government that it is taking steps to shutter the company’s Marlin mine.
The decision follows months of intense criticism by activists who claim the mine has led to human rights violations and caused health problems among the local population (See “New reports reveal trouble at Goldcorp’s Guatemalan venture” – issue 1074, May 25-31, 2010).
“The Marlin mine has always been the source of conflict in [those] communities,” said Kristen Genovese, a senior attorney with Washington-D.C.’s Center for International Environmental Law. “At this critical time when tensions are running high we urge the government to take appropriate measures to ensure the safety of all involved.”
Marlin, which has been in operation since 2005, is located in San Miguel Ixtahuacan, Guatemala.
According to Goldcorp’s 2009 annual report, Marlin produced 275,000 ounces of gold last year, which is approximately 11% of the company’s total gold production.
Goldcorp’s share price dropped $0.32 to $46.09 after the news was announced, but climbed back to $46.98 in early trading Friday.
Last month, the Inter-American Commission on Human Rights (IACHR), an independent body of the Organization of American States, asked the Guatemalan government to halt operations at the mine.
That request followed a Physicians for Human Rights report that found evidence of heavy metals in the blood of locals near the mine, and an independent human rights assessment commissioned by Goldcorp that recommended the company end any and all expansion and exploration projects near Marlin.
In a recent interview with BIV, Goldcorp president and CEO Chuck Jeannes said the company has done everything it can to ensure the mine has had no adverse effects on the local population or environment (see “Goldcorp flies on precious commodity” – issue 1078, June 22-28, 2010).
“Absent such evidence, we continue to believe there is no basis for suspending operations at the mine,” Jeannes said yesterday in a release.
The Guatemalan government will now initiate a process to suspend operations at the mine. Goldcorp said Marlin would continue to produce gold while that process is underway.
IACHR will visit the mine for an independent review of its operations next month.
Marlin employs approximately 1,900 people.