Investing.com -Tahoe Resources Inc's (NYSE:TAHO) shares surged on Monday, getting a big boost from the Guatemalan Supreme Court’s decision to reinstate the Escobal mining license of Tahoe's Guatemalan subsidiary, Minera San Rafael (MSR). The ruling reverses a preliminary ruling issued by the same court in August.
The court suspended MSR's license in connection with an action brought by the anti-mining organization, CALAS, against Guatemala's Ministry of Energy and Mines. CALAS alleges that Guatemala's Ministry of Energy and Mines (MEM) violated the Xinca indigenous people's right of consultation in advance of granting the Escobal mining license to MSR.
Under the ruling. MEM has been ordered to consult with the Xinca indigenous communities within a certain geographic area and report results of the consultation to the satisfaction of the Court within 12 months. Tahoe is seeking clarification from the Supreme Court on the specific geographical departments to be included within the scope of MEM's consultation
While the Supreme Court ruling allows Escobal operations to commence immediately, there is an ongoing illegal roadblock at Casillas, preventing an immediate restart of operations at this time.
Tahoe Resources shares were recently up 32.5% at $6.23.