Hudbay Minerals Inc. has reached settlements regarding three civil actions related to the 2011 sale of the Fenix nickel mine in Guatemala.
The legal actions concern the 2009 murder of Adolfo Ich Chamán, the 2009 shooting that resulted in the paralysis of German Chub Choc, and the 2007 displacement of the Mayan community of Lote Ocho from the Fenix mine territory, during which 11 women claim to have been sexually assaulted.
The allegations of sexual assault were made prior to the acquisition of the site by Hudbay, which is based in Toronto. In 2008, Hudbay purchased Fenix from another Canadian firm, Skye Resources Inc., thereby assuming responsibility for the mine.
The incidents led to three distinct claims against Hudbay in 2010 and 2011, filed by the alleged victims and their family members.
One of the claimants, Angelica Choc, the widow of Mr. Ich, had filed a lawsuit for negligence and wrongful death against Hudbay and its subsidiary, seeking $12 million in damages. In a statement, she expressed her satisfaction with the settlement.
According to the company, the agreement affirms that the settlement is without admission of liability and that the parties still hold fundamentally different opinions regarding the facts underlying the allegations. The parties agreed not to reveal the specific terms of the settlement, including the amount of compensation paid.
Canadian mining firms are facing a growing number of lawsuits within Canada related to purported violations occurring in foreign countries. In a landmark decision in 2020, the Supreme Court of Canada determined that Nevsun Resources Ltd., a Canadian mining company, could be held accountable in Canada for alleged human rights violations that took place overseas. Subsequently, Nevsun settled with three Eritrean workers who had filed the lawsuit against the company, claiming human rights abuses during the development of a mine in Eritrea.
The Nevsun case significantly expanded the scope of legal responsibility for numerous Canadian corporations.
