Lawyers for the National Roundtable on Metalic Mining in El Salvador reacted to the initial hearing, saying that the proceedings ignored the essential role of local communities in determining whether mining projects can or should go forward, and the environmental risks associated with such projects.
Pacific Rim applied for the operating license in 2005 to open a mining project in the department of Cabañas, in the north of the country. It is suing for losses incurred on investments made during exploration work. Pacific Rim filed the suit based on the Central America Free Trade Agreement (CAFTA), specifically chapter 10 on investments and chapter 12 on dispute resolution.
The economic and investment focus of the dispute was heavily criticized by Luis López, a lawyer for the National Roundtable on Metalic Mining in El Salvador. "Environmental issues and the rights of the local communities are not being discussed," he says. "This operating license is being treated as just another permit, without taking into account the fact that this country is very small and densely populated, and those issues [the environment and people’s rights] will only be addressed as secondary issues."
That is why the Roundtable, with the support of Oxfam America and the Center for International Environmental Law (CIEL) will be sending an 'amicus curiae'-- a friend of the court brief-- to the ICSID. This is a way for organizations and people directly affected to get involved in a case of this kind, between a transnational company and a government. "With the 'amicus curiae' we're going to introduce new elements that will have to be taken into account, such as the environmental issue" says López. "We want all aspects of the dispute to be discussed."
A second hearing is scheduled for August, when both parties will produce further evidence to support their positions. The dispute is expected to be settled in August or September of this year.
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The International Labour Organization (ILO) is calling on President Álvaro Colom to suspend operations at the Marlin Mine in the western highlands. The ILO’s Commission of Experts told the government that it should “suspend exploitation” until it can provide information for a review under way concerning the social, spiritual, cultural, and environmental impact of the Marlin mine on local Maya people. (See the Report of the Committee of Experts on the Application of Conventions and Recommendations, pp. 769-770.)
The same report (p. 781) urged the government of Peru to suspend mining exploration and operations affecting indigenous people until “until such time as the participation and consultation of the peoples concerned is ensured through their representative institutions in a climate of full respect and trust.”
The review is part of the government’s responsibility under the ILO’s Convention Concerning Indigenous and Tribal People in Independent Countries (known as ILO Convention 169).
In addition, the UN’s Committee on Elimination of Racial Discrimination (CERD), in its 76th session in Geneva urged the government of Guatemala to take action to support the human rights of indigenous people affected by mining: “It was recommended that Guatemala put in place adequate mechanisms, in conformity with the United Nations Declaration on the Rights of Indigenous Peoples and International Labour Organization Convention No. 169, to ensure effective consultation with communities that could be affected regarding projects for the exploitation and development of their natural resources, with the objective of obtaining their prior informed consent.”
These statements reaffirm the importance of free, prior and informed consent (FPIC) of the indigenous people of Guatemala. Local communities--especially indigenous communities--have to be informed in a timely manner about development projects and should have the opportunity to approve (or reject) a project before it starts.
Oxfam America works with national organizations to inform communities about the possible effects of mining projects in their communities and their rights to FPIC. “The reports and the recommendations of ILO and CERD reconfirm the importance and the validity of the demands of the indigenous people in Guatemala affected by mining, and the importance of consulting with these communities,” affirms Andrés McKinley, program officer for Oxfam America in Central America. “In the absence of these fundamental rights, mining in Guatemala will continue to threaten peace and sustainable development in the country.”
]]>De Echave's remarks came during a conference held by Oxfam America and the Revenue Watch Institute in Washington, DC titled "From Conflict to Consensus: Extractive Industry Transparency in Latin America." The conference included speakers from citizen organizations in Bolivia, Ecuador, Mexico, and Peru, as well as the Peruvian Ambassador to the US Luis Valdivieso and Anwar Ravat, the World Bank’s manager of the Extractive Industry Transparency Initiative.
Patricia Diaz, Oxfam America's program officer in South America following the hydrocarbon industry, says conflicts erupt in Peru and other countries as “communities express frustration with what they perceive to be significant social and environmental costs associated with extractive industries, and only limited social benefits. These conflicts not only destabilize Peru but create a difficult operating environment for American and other companies.” She also said that conflicts flare up when mines and pipelines are set up without the free, prior, and informed consent of local people.
Oxfam America and Revenue Watch Institute are advocating for governments and companies to disclose payments made for oil, gas, and mining projects as a means to build trust and reduce conflicts. Citizens would be able to see how much money their government receives from companies, and if they are getting a fair share of revenue devoted to their communities. Diaz says this information would help avoid conflicts such as the one seen in the Tacna and Moquegua regions of Peru last year, when the government altered mining royalty payments, setting off protests by 20,000 people resulting in three deaths. “More information on the mining revenues that each region would be receiving could have helped to avert this conflict,” she said.
A few days after the Washington event, and after months of pressure from Oxfam America and others, the Inter-American Development Bank formally endorsed EITI. In the U.S. Congress, Diaz and others also held a briefing to urge action on proposed legislation to require extractive industry revenue disclosure. If enacted, the law would require companies subject to US Securities and Exchange Commission rules to disclose payments to governments. “Civil society in Peru would have a key tool for ensuring that these payments ultimately benefit the local communities most affected by mining and hydrocarbon projects,” Diaz said in Washington. “And US companies and consumers would benefit through better operating environments and steady access to the raw materials you depend on.”
Download all the presentations delivered at the conference here.
]]>It is hard to reconcile the beauty of the lake with the violence along its shores. Mejía's work to defend the environment, and propose sustainable ways of living and working, has angered some who would prefer to rely on industrial mining for economic development in the region. A local citizen's organization has written a threatening letter to the Interior Ministry in Guatemala City, saying her work to educate community leaders about the risks of mining is unacceptable. She continues working, with international observers with her at all times to protect her.
Mejía first came here 10 years ago. She and her three children settled in the lakeside town of El Estor, promoting ecotourism and waging a series of campaigns to protect Lake Izabal from oil and mining projects that she says threaten the natural resources of the region—and won—t do much to benefit the local farming and fishing communities.
In 2002, Mejía and a handful of teachers, fisherman, environmentalists, a local physician and other citizens took on Shell Oil, which had a concession to drill right through the bottom of the lake. The small band of opponents founded the Association of Friends of Lake Izabal (ASALI) and succeeded in blocking the licenses for this project. ASALI then turned its attention to nickel mines along the sides of the lake.
There has been industrial mining in Izabal since the 1950s, but it has been in fits and starts as the prices of commodities have spiked and crashed over the years. But mining is now booming everywhere, so the Canadian company Skye Resources, which bought the mine in 2004, is now preparing to work a 100-square-mile concession it acquired in 2005. The area is home to 30 indigenous Q'eq'chi communities. None were properly consulted about the concession. This constitutes a violation of Guatemala's 1996 Peace Accords and international laws that protect indigenous people. The company is now engaged in talks with communities to convince them to go along with the plan to mine.
Skye Resources is now operating at a loss as it seeks financing so it can start mining in 2009. The company estimates it could get as much as 673,000 tons of nickel out of the mine. As part of its effort to clear people out of the concession area, the company and police forcefully evicted a number of Q'eq'chi communities in January of 2007, burning their humble shelters to the ground.
"We need a strong defense of the environment here," Mejía says at her home in El Estor. She has just finished a meal of traditionally prepared fish from Lake Izabal, and dines with visitors and two members of Peace Brigades International, who accompany her to ensure her safety.
ASALI is working in 29 communities to teach their leaders about mining: how much water is used, the chemicals, the transportation, and the rights of indigenous communities to be consulted. "We want every community leader to attend one of these workshops, and share their ideas and problems and work on them together," Mejía says. With help from Oxfam America, ASALI also arranges for these leaders to visit other mining areas in Honduras and in Guatemala's western highlands to see the effects of mining on indigenous people. "This is so they can see the consequences and talk to affected people," she says.
With the laws around land rights so unclear in Guatemala, indigenous people lack the required title and other official documents they need to defend their territory. Mejía says this needs to be addressed. "Through our contacts we have put the issue of land on the national agenda; it's been discussed in congress, so people are aware of the problems of land in mining concession areas."
Much of Mejía's motivation comes from her commitment to the people, all those who fish and grow corn on the fields near the lake. "When you come here and see the needs of the poor communities, you can see that people are not asking for much in life. But when you see the injustices and the way things are taken from them, it is so unfair that they are so poor and have so few opportunities despite the richness and national treasure here," she says. "This leads you to fall in love with this place. It makes you want to do something to contribute to changes here—and to denounce the injustice."
It is just this commitment that puts her at risk. Her Peace Brigade guardians are with her and several of her colleagues from ASALI, all of whom are working under threat. Mejía says they are not radicals."We want people to understand that there is another healthy and just way to develop this area, through rational use of the national treasures we have here."
"If at some time we no longer exist, we hope that we have sowed some seeds of awareness, solidarity, and respect to the environment. In this threatening climate for our work, our vulnerability makes us do what little we can—with all our hearts."
]]>Mining has never been a significant part of El Salvador's economy, but modern techniques make it attractive in some areas. The Canadian mining company Pacific Rim is currently exploring for minerals in three areas, and has requested a concession to restart mining at the El Dorado mine in the department of Cabañas where it says it has invested $28 million and can produce 1.2 million ounces of gold and 7.4 million ounces of silver. Pacific Rim is also in the early stages of exploration on its Zamora project, near Texistepeque, Santa Ana.
Farmers near the town of Texistepeque are skeptical about mining, and some have even visited large-scale mines in Honduras and come back opposed to any mining in El Salvador. Salvador Antonio Seseña Rodruígez, 62, is one of the farmers who made the trip to the San Andres mine in Honduras. "I was really impressed by the destruction," he said about the mine. "We saw the main river there was almost dry, and there was no life in the river."
Rodruígez is a father of 10, and makes a living raising cows and growing corn and beans. So he was particularly concerned about the water problems he saw. "We already have a water crisis here," he says. "We can't drink contaminated water. How will we end up if we allow mining here?"
It was through his church and a meeting with the Centro de Investigación Sobre Inversión y Comercio (know as CEICOM) that he participated in the exchange visit. He came back ready to mobilize others in his community.
Oxfam America is working with CEICOM and a coalition of social, environmental, and other civil society organizations pushing for a voice in a real debate about whether mining is suitable for El Salvador, where some estimates say 90 percent of surface water is already polluted. The country has also been largely deforested, leaving many communities at risk of landslides during heavy rains, so many are already concerned about the environment. The Salvadorian Bishop's Conference released a statement saying mining causes damage to the environment and communities in May of 2007.
Civil society organization in El Salvador have proposed a law that would prohibit all hard-rock mineral mining, arguing the country is too densely populated and water is too scarce to support the industry.
Oxfam America's program in Central America, which is based in El Salvador, is working to enrich the debate on this issue, help civil society project its voice and hold the government accountable to the people, and provide information about mining and its effects on communities and the environment that citizens can use to make informed decisions.
The government of El Salvador has said it will not grant any new licenses to explore or operate mines until it does a strategic environmental study to assess the likely impact of open-pit mining in the country. "We feel this study should be done with the participation of civil society," says David Pereira of CEICOM. He said that in 2006 the minister of natural resources came out publicly against mining, saying the government did not have the capacity to regulate the industry. The minister then challenged civil society to change the laws and cautioned land owners not to sell their land to mining companies.
Some members of the senate have written a public letter to government leaders saying that they believe allowing industrial mining into the northern areas of the country will jeopardize development projects supported by the Millennium Challenge Corporation (MCC), a $460-million, US government-funded foreign aid program, to bring sustained economic development in that region.
Pacific Rim continues to explore at El Dorado, which it says is its flagship property. The company is running an aggressive public relations campaign with radio ads introducing the slogan "minería verde" in an attempt to win hearts and minds of government and citizens. It also sponsors municipal soccer teams, and holds community meetings to sway farmers to accept mining in their community.
In the meantime, the Environmental Committee of Cabañas is reporting that 10 natural springs have dried up in the past month in areas close to Pacific Rim exploratory drilling. These reports have been verified by the Ministry of Natural Resources. In one of the cases, cattle-raising communities lost their natural spring four days after Pacific Rim began drilling. The company is now trucking in daily rations of water.
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