Article: Gold Diggers

Glamis Urged to Halt Guatemala Mine After Clash

Thursday, January 13, 2005 3:42:38 PM ET

VANCOUVER, British Columbia (Reuters) - Non-governmental organizations urged Glamis Gold Ltd. on Thursday to halt development of a mine project in Guatemala after one person was killed in clashes with police and soldiers helping to escort equipment through a road blockade.

Canada's Rights Action and MiningWatch Canada said Glamis must stop construction at its Marlin project in western Guatemala to deal with the indigenous community's concerns that they weren't consulted about the gold mine.

But Glamis said the mine, which is expected to start up later this year, has the support of local residents and the government and accused "anti-development" activists of inciting villagers.

The mid-sized Reno, Nevada-based miner has been in the news a lot in the past month because of a hostile takeover bid for rival Goldcorp Inc.

The dispute in Guatemala began in early December when residents of Los Encuentros, about 150 km (95 miles) from the Marlin site, objected to the temporary dismantling of a footbridge so that a convoy carrying large pieces of milling equipment could pass.

Glamis said in a statement that government officials called in police to escort the truck through the blockaded highway, leading to a confrontation with villagers earlier this week.

"We can confirm that a peasant named Raul Castro died but we have no information regarding the causes of his death. Our agents were not armed with guns," Erwin Sperinsen, Guatemala's national police chief, said.

Glamis said the ball mill was the last piece of large equipment needed for construction and was expected to arrive at the site on Thursday.

(Additional reporting by Herbert Hernandez in Guatemala City)
© Reuters 2005.