Guatemalan mine conflict alarms industry across Latin America

FILE PHOTO: Workers are seen at the Escobal Silver Mine, mine unit of Tahoe Resources Inc., in the town of San Rafael las Flores, Guatemala August 14, 2017. REUTERS/Luis Echeverria/File Photo

CASILLAS, Guatemala (Reuters) - A bitter drama playing out over a Guatemalan silver project forced to close by the courts has shocked miners throughout Latin America, sounding a warning to firms to approach indigenous issues more cautiously or pay the consequences.

Work at the Escobal mine, where U.S.-based Tahoe Resources has invested more than $500 million (395.3 million pounds), was abruptly suspended last year by judges pending consultation of nearby indigenous Xinca communities, a decision upheld by Guatemala's top court in September.