HudBay says still committed to Fenix project

* 1 dead, several injured after clash with protesters

* Company will develop Fenix when economics improve

* HudBay shares drop 3.7 percent (In U.S. dollars, unless noted)

TORONTO, Sept 29 (Reuters) - HudBay Minerals HBM.TO said on Tuesday it is committed to advancing its Fenix project in Guatemala despite clashes near the property that left one dead and several injured over the weekend.

The nickel project, which HudBay acquired last year when it bought Sky Resources, has been the site of a long-running land dispute between local residents occupying the land and the mine ownership.

The latest trouble broke out on Sunday when security guards clashed with locals after discussions about relocation broke down. Police said one man was killed an another eight were wounded by gunfire, while five security guards were wounded.

HudBay said the clashes were with a separate group of organized protesters near the neighboring town of El Estor. The company said there was no damage reported to facilities at the mine site.

HudBay suspended development of Fenix last year when nickel prices plunged, and the company has since had exploration successes at its other main development project, the Lalor Lake deposit in Western Canada.

But in a statement, HudBay said it was committed to Fenix, which is expected to cost about $1 billion to bring to production.

“(HudBay) is committed to advancing the development of the Fenix project to reach its full production when it is economically viable,” it said in a statement.

The company also said it would co-operate fully with any investigation of the incidents.

HudBay shares fell 48 Canadian cents, or 3.7 percent, to C$12.55 on Tuesday, making it among the worst-performing Toronto-listed miners.

$1=$1.08 Canadian Reporting by Cameron French, additional reporting by Sarah Grainger in Guatemala City; editing by Rob Wilson