The Swiss Blockade: Why Guatemala’s Nickel-Mining Operations Have Come to a Halt

The United States has been pressuring Swiss companies to halt nickel mining in Guatemala to stop Russia from producing weapons, as nickel is an essential element in the manufacturing of weapons. The US has expressed concerns that the nickel being mined in Guatemala is being transported to Russia, where it is used in the production of military equipment.

The Solway Investment Group, based in Zug, has suspended activities of two nickel-mining subsidiaries in Guatemala owing to sanctions imposed by the United States.

In November last year, the US Treasury issued sanctions targeting Russian involvement in the Guatemalan nickel sector. This included Compania Guatemalteca de Niquel ProNiCo and Mayaniquel, Guatemalan-based subsidiaries of Solway Investment Group.

The US also sanctioned Dmitry Kudryakov, who leads Solway’s mining operations in Guatemala, and a Belarusian national for allegedly leading bribery and corruption schemes.

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While the talk in town is that the American move is against Russian corruption in Guatemala, there’s more than what meets the eye.

The metallic “Achilles heel” for any military and naval production has always been nickel. The Second World War was a mechanized war that utilized more technically advanced equipment than ever before in order to win.

Thousands of pounds of nickel were used in the mighty flying B-29 Superfortresses, while the war in the Pacific was primarily an amphibious battle requiring rugged engines with many nickel alloy parts able to withstand the corrosive effects of salt water.

Nickel-hardened armor plate for tanks, nickel alloys for anti-aircraft guns and ordnance, and even lightweight and tough portable bridges used in the invasion of Germany all required this essential metal.

There has always been a largely ignored umbilical cord link between Guatemala’s  strategic nickel mines and the Russian military-industrial complex. The mines have been a dominant supplier of nickel to Russia. This is the exact strategic reason behind America’s move, not some normative acts of fighting Russian corruption.

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Access to strategic materials has always affected the destinies of nations. The Romans conquered Britain in AD 43 to control valuable tin deposits in Cornwall. Combining tin with copper produces bronze, a more valuable and militarily important alloy. Ancient Chinese metallurgical expertise with iron and steel allowed the Middle Kingdom to become a dominant military and economic force during the prosperous Han dynasty.

Many political pundits and policy analysts feel we are entering a new cold war and strategic resources will be one of the key sources of conflict. Russia, on its part, is ahead of the US in terms of access to such key strategic resources. Guatemala contains one of the largest sources of nickel, along with Norilsk mines for Russia. The US is irked with Moscow’s easy abundance of the strategic mineral. The recent move should therefore be seen in this light.

However, it is important to consider the potential impact on the Guatemalan economy and the communities that depend on the mining industry for their livelihoods. Halting mining operations could have serious economic consequences for these communities, and it is important that any decision made takes into account the potential social and economic impacts.

Furthermore, it is important to consider the extent to which this strategy of stopping the flow of nickel to Russia will actually be effective. It is possible that Russia could simply turn to other sources of nickel or find alternative materials for the production of weapons.

Ultimately, any decision made regarding the mining of nickel in Guatemala should be based on a thorough analysis of the potential social, economic, and political impacts, as well as an assessment of the effectiveness of this strategy in achieving its stated goals. Unfortunately, the US’ move lacks such comprehensive analysis and reeks of a strategic blunder.

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