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Guatemala- Marlin

Complaint	An NGO representing indigenous people from the municipality of Sipacapa, filed a complaint in January 2005, alleging that the Marlin gold and silver mine will negatively affect local water supply quality and quantity as well as harm the environment. The complainant also alleges that indigenous residents were not adequately consulted about the project.

IFC Interest	The IFC has granted and disbursed a US$45million loan to the Marlin project.

Background	The Marlin gold and silver mine is owned and operated by Montana Exploradora de Guatemala, S.A., a subsidiary of Glamis Gold, Ltd. The Marlin mine is the first major open-pit mine to exist in Guatemala in over 20 years. The mine is located in the two municipalities of San Miguel Ixtahuacan and Sipacapa, in the department of San Marcos, Guatemala. The mine has been the focal point of considerable controversy both within and outside of Guatemala.

CAO Action	The CAO appraised and accepted the complaint in March 2005. As part of its assessment process, CAO met with the IFC project team, visited the project area in April 2005, conducted a desk review of project documentation, and commissioned an independent technical review of the project’s environmental documentation.

Current Status	The original assessment report was released on September 8, 2005, and can be found below, along with the report’s annexes. The CAO conducted two follow-up missions, one from October 3rd-10th, 2005 and the other from January 23rd- February 2nd, 2006. The follow-up assessment report from the two missions is posted below. CAO has closed this complaint and has asked all parties to monitor and report on the implementation of the CAO recommendations.

Received

Appraisal

Assessment

Conciliation, Mediation, Settlement, Monitoring & Follow Up

5 days

15 days

30-90 days

Closure and Ongoing Monitoring

Acknowledged
March 2005

Accepted
March 2005

Assessment Report Completed
9-8-05

Follow-up Assessment Report Completed 5-1-06