Guatemala’s Fenix nickel operation is nearing full capacity after restarting production, as the company looks to win back customers in the United States and Europe following years of controversy and U.S. sanctions.
Luis E. Arreaga, a former U.S. ambassador to Guatemala and now an independent Fenix Nickel board member, said that mining resumed around late June and the operation can supply about 20,000 tonnes of ferronickel annually.
The restart follows a major governance overhaul after the previous operators were sanctioned by the U.S. Treasury in 2022 over alleged bribery schemes. Arreaga acknowledged the mine’s “terrible reputation” and said some former customers severed ties following the sanctions.
Fenix is now seeking to re-enter U.S. and European supply chains, while also confronting longstanding concerns over Indigenous consultation, community trust and the operation’s environmental record.
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