VANCOUVER—Advocates are demanding an investigation into B.C. companies Tahoe Resources and Pan American Silver for allegedly failing to disclose conflicts with the indigenous Xinka people living around its Escobal mine in Guatemala.

The Justice and Corporate Accountability Project, representing three non-profits that work with the local Xinka communities, filed complaints with the B.C. Securities Commission and U.S. Securities and Exchange Commission on Thursday, mere days before Pan American shareholders are to vote on a $1-billion acquisition of Tahoe Resources on Jan. 8.

Lawyer Shin Imai wrote in the letter to the commissions that Tahoe Resources “misstated” and “omitted” facts on opposition to its Escobal mine operations — necessary information for Pan American Silver shareholders before the vote.

The request for investigation said Tahoe provided an “unjustifiably optimistic” view of the mine by highlighting the possibility of reopening in December 2019 and that it failed to disclose serious issues and conflicts in the consultation process.

The issues include Imai’s claims that Tahoe did not disclose the decision of the constitutional court to nullify Tahoe’s last remaining exploratory licence and that the court upheld a decision by a lower court to order the government to increase royalties going to communities affected by mining.

“As far as I know, the securities commission didn’t do anything,” Imai told StarMetro. “Tahoe, of course, was in high denial; they thought everybody loved them and then they got suspended.”

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Tahoe Resources did not immediately respond to a request for comment.

In April 2013, the mine operated by Tahoe became a battleground between security guards and protesters alarmed by the environmental impact the mine was having on the rural southeastern Guatemalan community as well as the disruption of rural life in the Indigenous area and a lack of consultation.

That has become a familiar complaint against Canada’s dominant mining industry, which owns more the half the companies operating in Latin America, Asia and Africa.

In response to the complaints, Pan American Silver said it believes the issues around the Escobal mine have been “well-documented” and the company has described the conflicts in a December report.

“Pan American has not been advised of any regulatory investigation,” said Christopher Lemon, general counsel representing Pan American Silver, in an email to StarMetro.

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Lemon added that consultation with the indigenous groups are “important” in gaining support for the mine to reopen. A consultation process held by the Guatemalan ministry of energy and mines is currently underway, and Pan American Silver looks forward to “peacefully engaging” with stakeholders, Lemon stated.

After the constitutional court upheld the suspension, Tahoe Resources stock fell more than 20 per cent to $3.37 — the lowest level in five years.

With files from The Canadian Press

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