2024-01-18 21:04:46
Solway Investment Group’s Guatemalan subsidiaries, Compañía Guatemalteca De Níquel (CGN) and Compañía Procesadora de Níquel De Izabal (PRONICO), were removed from the list of sanctioned entities from the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury, so they will be able to resume their operations in Guatemala without restrictions.
Perspective Writing
«Solway thanks the United States government and especially OFAC for their professionalism throughout the process (…) We thank the many professionals who helped them achieve this successful outcome, such as the legal team at Seiden Law LLP and Berliner Corcoran & Rowe, and other professionals for their efforts,” said Denis Gerasev, Principal Counsel of the company.
After being affected by OFAC’s sanctioning in November 2022 under the Global Magnitsky Act, the subsidiaries have been officially removed from its sanctions list, known as the “SDN List.” Given this, both companies announced that they will strive to work closely with the President Bernardo Arévalo and its new administration in all aspects, especially in relation to local indigenous communities, human rights and environmental concerns.
In addition, they emphasized that they will work closely with the new Minister of Energy and Mines to obtain the export credentials necessary to resume operations and rehire the more than 1,000 workers employed by both companies.
It is important to mention that these credentials are a technical right within the main exploitation license, these are resumed annually and must be signed by the General Director of Mining of the MEM, a request that was previously made in 2023.
IN CONTEXT:
During his visit to Guatemala in October 2023, Gerasev highlighted the need to obtain export credentials, since the company is in the country with the purpose of doing business and investing in the region.
COMMITTED THROUGH AN ANTI-CORRUPTION PROGRAM
Solway, Solway Investment Groupa global mining company based in Switzerland, reiterated that it has committed to an extensive anti-corruption program, including the appointment of an independent monitor and the transfer of ownership of its two Guatemalan subsidiaries to the United States to ensure that two companies are subject to US laws and regulations.
As detailed, the new entity, which will become the owner of the two subsidiaries, has already been incorporated in the state of New York, and Solway intends to complete the formal transfer of the subsidiaries in the near future. The company assures that they will strive to work closely with the new Government, especially in relation to local indigenous communities, human rights and environmental concerns. (Credit. Courtesy)
“Over the last 14 months, Solway has implemented comprehensive reforms, seeking to improve the transparency and accountability, as well as communication and relationships with local indigenous communities. Solway has established a complaints mechanism to allow interested parties who feel affected to submit complaints about human rights or other unwanted adverse impacts, which will be duly considered,” they emphasized.
It is worth mentioning that Solway has also adopted a solid Code of Conduct and a complete Human Rights Policy. In accordance with that policy and the United Nations Guiding Principles on Business and Human Rights, Solway affirms its respect for human rightsincluding the fundamental rights to freedom of association and expression, and repudiates any past abuses such as those alleged and still under investigation.
Dan Bronstein, CEO of Solway, stated: “Solway’s Guatemalan subsidiaries generate thousands of direct and indirect jobs in Guatemala and they produce nickel, which is essential for construction and the energy transition. We are delighted to now be able to dedicate our energy to restarting operations and restoring employment, social security and economic development in host communities. And we are proud to do so in compliance with
world-class standards in terms of compliance and transparency, and with the utmost respect for environmental, humanitarian and indigenous rights.
OTHER ACTIONS
Information provided by Solway indicates that, in December 2023, the company publicly supported the decision of the Inter-American Court of Human Rights in favor of the Agua Caliente community in the protection of its lands, involving events and actions prior to the acquisition of the two companies by Solway.
Additionally, they are implementing extensive policies to ensure fully compliant and ethical business operations, and to be recognized as a global corporate citizen with integrity and a commitment to sustainability.
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