Klippensteins Barristers & Solicitors

August 10, 2011 13:16 ET

Ontario Lawsuits Against HudBay Regarding Alleged Human Rights Abuse Continue Despite Sale of Fenix Project

TORONTO, ONTARIO--(Marketwire - Aug. 10, 2011) - Lawsuits in Ontario against HudBay Minerals regarding the alleged killing of Adolfo Ich and the rapes of 11 women by mine security personnel will continue despite the recently announced sale of HudBay's Fenix Project.

On August 5, 2011, HudBay Minerals announced that it had agreed to sell its troubled Fenix mining project located in Guatemala to the Solway Group, a private Russian company incorporated in Cyprus. The sale of the Fenix project for $170 million is considerably less than the $460 million that HudBay paid for the project a mere three years ago.

"We believe this sale was prompted in part by the severe human rights issues at HudBay's Fenix Project that dogged the company at every turn. The killing of Adolfo Ich and the gang-rapes of Rosa Elbira and 10 others at Lote Ocho are albatrosses that weigh heavily on the neck of HudBay," said Murray Klippenstein, lawyer for the widow of Adolfo Ich and the 11 survivors of rape from Lote Ocho.

"It appears that HudBay took a financial hit as a result of speculating on a project in Guatemala that was beset by allegations of severe human rights abuse and risks of further abuse. We hope this serves as a lesson to Canadian companies that ignoring concerns over risks of severe human rights abuse can be expensive."

Despite the sale, the lawsuits against HudBay and its subsidiary HMI Nickel will continue.

"HudBay and HMI Nickel cannot avoid liability for their past actions by selling the project," said Mr. Klippenstein.

"Our clients will continue to vigorously pursue their claims against HudBay and HMI in Ontario courts to ensure these Canadian companies are held accountable for any past wrongful acts."

For copies of the legal claims, see www.chocversushudbay.com.

Contact Information

  • KLIPPENSTEINS
    Barristers & Solicitors
    Cory Wanless
    1-416-598-0288 (Office) or 1-647-886-1914 (Cell)