Resistencia Pacífica La Puya | 28 December 2025

Statement from the Peaceful Resistance La Puya to the Guatemalan and international
community in response to the decision of the international arbitration tribunal (ICSID)
in KCA v. Guatemala

In response to the decision in favor of Guatemala in the international arbitration case brought by
Kappes, Cassiday & Associates (KCA) before the International Centre for Settlement of
Investment Disputes (ICSID) over the court-ordered suspension of the mining project Progreso
VII Derivada for lack of free, prior and informed consultation, the Maya Kaqchikel and
Xinka peoples who form part of the Peaceful Resistance La Puya recall that :

This arbitration began in 2018 because the company and previous Guatemalan government
administrations failed to respect the will of the population and their rejection of precious metal
mining in defense of life, water, and territory. The result of this violation by the State in
collusion with KCA has been conflict, local discord, intimidation, repression, and criminalization
of the communities in resistance, and, finally, this international arbitration process that lasted
seven years.

In light of Chapter 10 of the Free Trade Agreement between Central America, the Dominican
Republic, and the United States (CAFTA-DR), KCA sued the state over the court’s decision to
suspend the mining project and order a consultation process.

The Peaceful Resistance La Puya began defending its rights and the communities’ rights against
the imposition of this project in 2011. Today, this is a struggle that transcends La Puya because
of the vital importance of defending life, water, and territory in the face of the climate crisis and
for the well-being of communities throughout Guatemala.

La Puya built solid and well-founded arguments over the years showing that the company did not
comply with Guatemalan regulations and that its project should have never been approved. These
same arguments contributed to the State’s defense in the arbitration process, which expressly
recognized the legitimacy of the Peaceful Resistance La Puya for its ongoing efforts and its
strong organization. In addition, as part of its defense, Guatemala quantified the environmental
damage caused by the mining project, confirming the concerns that the Resistance has always
raised.

The decision in favor of the state announced by the National Comptroller’s Office (PGN by its
initials in Spanish) is testimony to the strength of the documentation that the resistance has built
up regarding the illegality and indefensibility of this project. For this reason, even without having
seen the final award in detail, we are not surprised that KCA was unable to substantiate its claims
before the arbitration tribunal.

We feel satisfied and vindicated in our peaceful struggle. KCA lost its wager to make
millions of dollars through this international arbitration process, which it initiated
knowing that it would never win the consent of communities that have always said no to its
unviable project. This project is so bad that the company couldn’t even defend it in an
arbitration system designed to protect the investments of transnational corporations.
This international arbitration system is not fair, but rather part of extractivism. It is another way
for large investors to make money without regard for the lives of peoples and ecosystems.

Corporations can bring claims on the basis of free trade agreements that are tailored to favor
transnational corporations, in this case the Free Trade Agreement between Central America, the
Dominican Republic and the United States (CAFTA-DR). However, communities do not have
equal access to justice for the harms they have suffered from this and other investments, which
remain in impunity.

In this unfair arbitration system, which is a one-sided playing field where only transnational
corporations can sue states and not vice versa, the State effectively cannot win. It simply does
not lose. This is an opportune moment for Guatemala review the commitments it has made in
investment treaties and decide, weighing the costs and benefits, whether or not to remain in this
system.

The Peaceful Resistance La Puya reaffirms its commitment to its dignified struggle for life,
water, and territory until the Progreso VII Derivado project has been canceled and to ensure that
no further mining licenses are granted in the region.

San José del Golfo y San Pedro Ayampuc, December 28, 2025

Yes to Life, No to Mining