All That Glitters Isn't Gold: Part II

Beautiful Izabal

Before roads and railroads, Lake Izabal was what linked the Guatemalan interior to the rest of the world. Commonly referred to as "the store" in English, the name evolved to its present form due to Spanish-speakers style of pronunciation and spelling. What is now known as "El Estor" was the landing and trading post for cargo and travelers to journeying from the coast to Cobán and beyond. This strategic position is what made it an attractive location to set up shop.  Unfortunately, one of the first to do so was the United Fruit Company, who came to dominate the region by appropriating the agricultural lands and denigrating the local indigenous population to manorial labour. In the 1960’s and 1970’s under the fog of war, a civil war that the UFC helped start, the company quietly withdrew from El Estor. Yet, as misfortune had it “the store” was located on Central America’s single largest nickel deposit and almost as quickly as one feudal giant left, another one took its place. EXMIBAL was a subsidiary of Canadian nickel giant, INCO, and until the war ended and nickel prices crashed in the 1980’s, it, like United Fruit, continued to perform what Galeano described as neo-colonial alchemy. Finally, in the 1990’s, and for little more than a decade, relative peace reigned. However, in 1997, a new neoliberal Mining Law and rising mineral prices combined to produce a %1000 increase in extractive exploration and exploitation in Guatemala. One of the first places that was re-opened for business was “the store” and one of the first company’s interested in restarting its alchemy was INCO.

Building on what it had seen and heard in San Miguel Ixtahuacán, OGG traveled to Izabal to meet with anti-mining activists Raúl and María and visit the affected community of Lote Ocho.

María Choc addressing OG and the community in Lote Ocho
Photo courtesy of Laura Huddart.

Allison writes:

“Today we visited the community of Lote 8, it’s close to the mine run by HudBay Mineral, another Canadian company. This particular community is made up of about 25 families and they are going through hell. Their community is in constant threat of being evicted by the mining company. At one point their entire village was burned to the ground, but they returned and rebuilt because this is their home, their land. Recently they have moved their village an hour hike uphill so that they can keep watch on who is coming and try to defend themselves. A couple years ago, security forces came to the town and because all the men were away at work they distracted the children and violently gang raped a dozen women, one of those women was telling us her story and saying how difficult it is to talk about. The whole community came out to meet with our group; they are so strong, so connected. They are all going through the same struggle and are so supportive of one another. Men and women both feel comfortable to speak up and the woman translating Q’eqchi to Spanish for us was a powerful woman with a commanding presence. Her sister is Angelica Choc who is currently suing the mine in Canadian court for the assassination of her husband who was a prominent community leader. The most powerful part of the day was when the women asked us after hearing their stories, “What are you going to do about this?” Wow, we can no longer be apathetic.”

Late on Friday August 5, 2011, just two days after our visit to the area, HudBay Minerals announced that it had agreed to sell 100% of its interest in the Fenix Mining Project located in El Estor, Guatemala. HudBay reportedly sold its stock in the nickel mine for $170 million, a fraction of the $460 million that the Canadian company paid for the project just three years earlier.

So, why the costly corporate retreat? "We believe this sale was prompted in part by the severe human rights issues at HudBay's Fenix Project that dogged the company at every turn. The murder of Adolfo Ich, and the gang-rapes of Rosa Elbira and the 10 other women at Lote Ocho committed by mine security personnel are albatrosses that weigh heavily on the neck of HudBay," said Murray Klippenstein. Klippenstein is the Toronto based firm representing Angelica Choc in a lawsuit against HudBay for the 2009 targeted killing of her husband, Adolfo Ich, by CGN (HudBay's wholly owned subsidiary) private security guards. Klippensteins also happens to be representing the 11 Mayan-Qeqchi women from the community of Lote 8 who were gang-raped by police, soldiers, and the same CGN security forces, as part of an illegal, forced eviction in 2007. 

A memorial to Adolfo Ich. Since his murder his image has become symbolic of anti-mining movements across the country.

The impunity in Guatemala that allows for a complete disregard for human rights and the rule of law is a well-documented and devastating phenomenon that dates back generations but like Maude Barlow, Chair of the Council of Canadians noted on her recent visit to Guatemala, impunity “is not only a Guatemalan phenomenon. It is profoundly a Canadian phenomenon.”

Klippenstein hopes the recent sale and law suits serve “as a lesson to Canadian companies that ignoring concerns over risks of severe human rights abuse can be incredibly expensive." But while Murray’s clients “continue to vigorously pursue their claims against HudBay and HMI in Ontario courts to ensure these Canadian companies are held accountable for their past wrongful acts," in Canada, there remains little chance for success much less redress.

Canada, unlike other countries, has no legal provisions or precedents, criminal or civil, for foreign claimants to pursue cases against Canadian companies for crimes committed outside of Canada. And even modest legislative attempts to introduce increased corporate accountability have been confronted by a coalition of staunch status quo defenders and human rights offenders, among them major mining industry players, Barrack Gold, and Goldcorp, as well as the Department of Foreign Affairs and International Trade, the Canada Pension Plan, and Export Development Canada. Between 2009 and 2010, their concerted lobbying effectively sabotaged Bill C-300, an Act Respecting Corporate Accountability for the Activities of Mining, Oil or Gas in Developing Countries. The same motley crew subsequently reunited to prevent the passing of Bill C-354, an initiative paralleling the American Alien Torts Claims Act that would have amended the Federal Courts Act to ensure the international promotion and legal protection of human rights.

However, in 2011, the crimes of HudBay, the environmental violations of Goldcorp, and the human rights abuses of Barrack Gold have again become popular press items and prominent public concerns. Consequently, C-354 has been resurrected in the form of private members Bill C-323, currently being re-tabled in the House of Commons. In this new context, the cases of Angelica Choc and the 11 brave women of Lote Ocho may just have the potential to haunt Hudbay long after its sale of the Fenix Mining Project.

Please show your support for Angelica, Lote 8, and all the other victims of Canadian corporate malfeasance by supporting Bill C-323 and other initiatives towards minimum and mandatory standards of corporate accountability.