Persistent opposition to mining projects here has forced the Guatemalan government to declare a moratorium on metal-extraction licenses and adopt—at least temporarily—a go-slow approach in its drive to build a modern mining industry.

The moratorium, announced in late January, prevents any of the 100 exploration contracts signed so far from being converted into mineral-extraction contracts. If left in place for long, it could be a major setback for the government’s plans to make Guatemala a magnet for foreign metals-mining investment.

“We may not be institutionally prepared today to face an all-out opening of mining licenses,” says Guatemalan Vice President Eduardo Stein. “We need to catch our breath to see what we are up against...We may be facing a temporary postponement of the development of mining in Guatemala that could last years.”

The decision followed a series of anti-mining protests, one of which turned violent. In January, a demonstrator was killed in Solola department when police tried to break up a highway protest action by mostly indigenous residents trying to prevent passage of a truck carrying mining equipment to the Marlin Mine.