Fenix Project

Our client plans to refurbish and expand an existing process plant and nickel smelter that lie next to a protected wetland area and on the shores of Lake Izabal, Guatemala's largest lake. The process plant and smelter, which are powered by an on-site power plant, had only operated for a few years in the late 1970s before closing due to low nickel prices and high fuel costs. The project is expected to directly provide hundreds of local jobs and many spin-off opportunities.

Our client retained us to prepare the Social and Environmental Assessment (SEA) in accordance with IFC Performance Standards and the Equator Principles. The scope of the SEA included an alternatives assessment, characterization of baseline conditions, an assessment of impacts and benefits, and the development of mitigation and management strategies, which include a community development plan and a conceptual reclamation and closure plan. We also assisted our client and a Guatemalan consultant in the preparation of a Spanish environmental impact assessment for the mining operation, and another one for the process plant.

We characterized the environmental and socioeconomic baseline conditions in the project's areas of influence. We provided a risk assessment of various transportation routes and, on an ongoing basis, we advised our client on consultation with and engagement of the predominantly Mayan indigenous local communities. We have trained a local person to provide environmental services to our client.

Key environmental issues identified in the assessment included water quality, erosion control and air quality, as well as some disturbance of local wildlife. On one of the transportation routes, we assessed the impact of resettlement of several households, and accompanying compensation. Our role involved helping our client to develop mitigation and management strategies to counteract the project's potential negative effects.

Services

• Baseline characterization of hydrology, hydrogeology, climate, natural hazards, water quality, terrestrial flora and fauna, aquatic flora and fauna
• Baseline socioeconomic characterization of community services, economics
• Advisory role in stakeholder engagement
• Preparation of a Social and Environmental Management Plan
• Training for the client's environmental staff on climate and hydrology data monitoring
• Field review of erosion control practices