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Hudbay Minerals settles civil lawsuits regarding former operations in Guatemala

TORONTO — Hudbay Minerals Inc. has reached settlement agreements covering three civil lawsuits in connection with the Fenix nickel project in Guatemala that the company sold in 2011.
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The Hudbay Minerals Inc. logo is shown in a handout. Hudbay Minerals Inc. has reached settlement agreements covering three civil lawsuits in connection with the Fenix nickel project in Guatemala that the company sold in 2011.THE CANADIAN PRESS/HO

TORONTO — Hudbay Minerals Inc. has reached settlement agreements covering three civil lawsuits in connection with the Fenix nickel project in Guatemala that the company sold in 2011.

The company says the settlements conclude all outstanding legal matters related to its former activities in Guatemala.

The lawsuits related to the 2009 killing of Adolfo Ich Chamán, the 2009 shooting and paralysis of German Chub Choc, and the 2007 eviction of the Mayan community of Lote Ocho from the disputed Fenix mine lands during which 11 women allege they were sexually assaulted.

The settlement involves compensation to all 13 plaintiffs.

The sides agreed not to disclose the specific terms of the settlement including the amount paid in compensation, but the company says the agreement confirms the settlement is without admission of liability and that the parties continue to have fundamentally differing views on the facts underlying the allegations.

Hudbay acquired the Fenix project in 2008 and divested itself of its holdings in Guatemala in 2011. Before 2008, the Fenix mine was owned by Canadian company Skye Resources Inc., which was bought by Hudbay.

Lawyers for the plaintiffs called the agreement "a fair and reasonable settlement."

"Over the past decade I have sat through multiple court hearings in Canada, endured days of questioning under oath in an office tower in Toronto and told the story of my husband’s death many painful times," said Angelica Choc, widow of Adolfo Ich.

"At times, it was hard to have hope. Part of me thought that we would never see any real justice. But somehow we made it through this together, and I feel so much relief that this is over and that it has come to a good ending with a fair settlement."

Hudbay chief executive Peter Kukielski said the cases have been outstanding for more than a decade and the board and management are pleased to bring them to a conclusion.

"In doing so, we recognized the difficult economic and social circumstances of the plaintiffs and we are thankful for a constructive resolution with the plaintiffs and their counsel," Kukielski said in a statement.

This report by The Canadian Press was first published Oct. 7, 2024.

Companies in this story: (TSX:HBM)

The Canadian Press

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