TORONTO - HudBay Minerals Inc. (TSX:HBM) says several of its employees in Guatemala were injured and one protester was killed during a confrontation relating to land owned by its subsidiary, Compania Guatemalteca de Niquel.
The dispute occurred Sunday when Guatemalan authorities were attempting to persuade occupiers of land near HudBay's Fenix nickel project to relocate.
HudBay said no evictions were carried out and none were threatened or intended.
No resolution was reached, and HudBay said government vehicles leaving the area were attacked by a separate group of protesters.
The company said reports indicate the protesters also "ransacked the local police station and stole weapons, including automatic firearms" and attacked a hospital sponsored by HudBay's Guatemalan subsidiary, "resulting in extensive damage to the facility and equipment."
HudBay's subsidiary said "several" of its employees were injured during the attack on the hospital and one of the protesters was killed.
"We deeply regret the injuries and loss of life that occurred in the El Estor area during the attacks by an organized minority," stated HudBay CEO Peter Jones.
"The majority of residents in the area support our outreach efforts, investments in the local community and development of the Fenix project. We remain committed to working with local residents to reach a fair and equitable solution to land claims and resettlement," he added.
The Fenix project is currently in the development stage. HudBay's Guatemalan subsidiary employs approximately 100 people.
In another development late Tuesday, HudBay said the TSX had accepted the company's plan to buy back up to 13.7 million common shares over the next year, or about 10 per cent of its public float of common shares.
By buying back its shares, HudBay reduces its equity base, spreading profits over fewer shares. That increases its return on equity and earnings per share, two key ratios used to determine a company's financial health and investment rating.
In addition, most share buybacks lead to stock price increases as there are fewer shares on the market for investors.
Shares in HudBay lost 48 cents or 3.7 per cent to $12.55 in Tuesday trading on the Toronto Stock Exchange.
