Reuters reported that protests are threatening a USD 1 billion nickel project in Guatemala and clashes over land rights have killed a man, putting one of Central America's biggest mineral investments in limbo.

It may be noted that the Fenix project in the town of El Estor, which looms over the banks of Guatemala's biggest lake, has world class nickel reserves and Canada's HudBay Minerals aims to develop the pit, which has long lain dormant after its was first mined.

HudBay said that the 7,700 hectare area has 41.4 million tonnes of mineral reserves and the potential to produce 50 million pounds of nickel per year over 30 years. But hundreds of local people claim that large expanses of company land near Lake Izabal once belonged to their ancestors and have occupied the property for the past four years, farming corn and building thatch houses.

HudBay said last month prices were improving and a decision to restart work could be made by the end of the year. It added that "A majority of local families have complied with the resettlement agreement, but a few continue to illegally occupy CGN property at this location."

Guatemala's Fenix deposit was first worked in 1977 and had a fraught relationship with locals during the country's 1960-1996 civil wars. A 1998 United Nations backed truth commission connected people employed by a subsidiary of the previous mine owner to killings of activists against the mine.

(Sourced from www.reuters.com)