Due to US sanctions: Swiss company Solway closes operations in Guatemala

Two subsidiaries of the Swiss mining group Solway Investment Group in Guatemala have ceased their activities in the nickel sector. The reason for this is the economic sanctions imposed by the US, the group announced on Wednesday.

On November 28, 2022, the US Treasury Department imposed sanctions for “corruption” and “cheating” against a Russian believed to be the head of the Zug company, a Belarusian and three companies operating in the mining sector in Guatemala.

Due to “unforeseen problems resulting from these sanctions”, Solway Investment Group’s Guatemalan subsidiaries – Compania Guatemalteca de Niquel and Compania Procesadora de Niquel de Izabal – have been forced to “temporarily suspend their operations”, the mining and metal group in a statement released by the company was available to the French news agency AFP, wrote.

An application to the US authorities for a “temporary authorization for certain transactions” has not been responded to, according to the Solway Investment Group. The government of Guatemala has not renewed the export licenses of the group’s two subsidiaries.

Environmental damage disputes

Part of the workforce will be retained to “ensure effective management of environmental and safety risks and maintenance of existing infrastructure,” the company said.

Both companies operate in El Estor and Los Amates in the Caribbean, 320 kilometers northeast of the capital. The local population has already opposed mining in this region. Clashes with police resulted in deaths and injuries. Environmental activists have also been arrested.

About a year ago, Solway came under fire after a mining company, part of the Solway Investment Group, withheld data about environmental damage in an indigenous area in northeastern Guatemala. (sda/afp)