Article: Where Gold Doesn't Glitter

Over the years repeated requests and recommendations have come from the international community to suspend a controversial mining operation in Guatemala’s western highlands.  However, the open-pit mine continues to operate and its presence in the indigenous municipalities of San Miguel Ixtahuacán and Sipacapa continues to foment social upheaval and growing numbers of allegations of serious human rights violations.
Anti-mining protest, 2010
THE OPERATION
The Marlin Mine is operated by Montana Exploradora, a fully owned subsidiary of Vancouver-based Goldcorp Inc, one of the world’s largest and most profitable gold companies. The mine was also the first project to receive financial support ($75 Million) from the World Bank’s International Finance Corporation (IFC) after its Extractive Industries Review (EIR), in 2003, which sought to bring World Bank-funded projects in line with the institution’s “overarching mandate of poverty alleviation and sustainable development.” It later became the first project to be found not in compliance with the new World Bank standards.

The Marlin Mine includes both surface and underground operations, with identified reserves to support production until 2017 but adjacent discoveries are expected to allow longer term operation. While open-pit mining is one of the cheapest methods of extraction it also tends to be one of the most destructive. It scrapes the surface of its earth to get to the mineral rich rock below. The rock is then crushed, ground, and soaked in a cyanide-zync solution which bonds to and separates the gold and silver from the wasterock, what’s leftover are termed tailings. The gold and silver bearing solution is then processed in a refinery on-site and smelted to produce doré bars while the arsenic and cyanide saturated wasterock and tailings are discarded in nearby heaps and ponds.


While Goldcorp is by no means the only company utilizing open-pit leaching methodologies, Sustainalytics, a Social Investment Database, indicates that Goldcorp bears the honour of the worst environmental record among mining companies on the Toronto Stock Exchange (TSX) Composite Index.[1] The company has been accused of illegally acquiring land, failing to consult affected communities, and causing cyanide spikes, elevated levels of heavy metal contamination, and acid mine drainage at mines in Argentina, Canada, Guatemala, Mexico, Honduras, and the United States.



THE SITUATION
In February 2010, the International Labour Organization (ILO) recommended that the Marlin Mine, owned by the Canadian company, GoldCorp, be suspended for having failed to ensure the right of communities to free, prior and informed consent, a stipulation of ILO Convention 169 and condition of the 1996 Guatemalan Peace Accords (see ILO Decision). On May 21, the Inter-American Commission on Human Rights (IAHRC) also demanded that the Guatemalan government suspend the operation following the release of a study by the University of Michigan (UM) and Physicians for Human Rights (PHR) that found elevated levels of mercury, copper, zinc, arsenic and lead in the blood and urine of people living in the vicinity of the Canadian-owned mine (See UM & PHR Report). That same month, an independent consulting group from York University, On Common Ground (OCG), released a Human Rights Impact Assessment (HRIA) detailing Goldcorp's "systematic failure to address grievances in the communities" and, among other concerns, the company's refusal to "protect and respect" Indigenous rights (see OCG Report). A month later, on June 18th, the UN Special Rapporteur on the situation of human rights and fundamental freedoms of indigenous people (UNSR), James Anaya, echoed the ILO, OAS, and OCG statements, adding that “according to the UN Declaration on the Rights of Indigenous Peoples, projects that have a significant impact on the rights of indigenous peoples such as the Marlin Mine, should not be implemented without the consent of the communities affected Indigenous Peoples.” And “if there is a substantial risk of injury to the health or physical wellbeing of the people due to the mine, the Ministry of Energy and Mines must proceed with the suspension of activities...” (See UNSR Press Release). The Guatemalan government initially agreed, but has thus far failed to enforce the order.
The Marlin Mine
In the meantime, the Marlin Mine continues to unearth more than just Gold in San Miguel Ixtahuacan. Inter and intra-community conflict (see Graham Russell Article) and concerns over local water contamination, dried wells, and cracked homes continue to come from the mine's open-pit.

THE PROBLEM(S)
The Marlin Mine consumes an estimated 250,000 litres of water per hour or what a typical family in San Marcos would use in 22 years (see NB Media Coop Article). Since it began operating in 2005, six local sources of water have reportedly dried up. Furthermore, a study by the University of Ghent found elevated levels of arsenic in nearby rivers (See Ghent Report). In September 2010, the Guatemalan Ministry of Environment and Natural Resources were even forced to make criminal allegations against Montana Exploradora and demand an investigation into the unauthorized discharge from its tailings pond that had raised concerns of possible contamination of the Quivichil River, which flows into the Cuilco River and on into Mexico (see La Prensa Libre Article).

Every day the Marlin operation excavates an estimated 5 thousand tonnes of waste rock and tailings from a hole almost 1km wide and over 300m deep.  The Mine’s overall footprint including its facilities, immense craters, and heaps of wasterock measures approx. 6km2 or three times the size of Monaco and occupies the territory of 5 separate communities in 2 different municipalities. The blasting of highland bedrock and heavy vehicular traffic related to the mine has also caused structural damage (cracked walls and floors) to over 100 homes in 4 communities located near to the mine site 
(See COPAE Report).

Where a mountain once stood now sits an open pit.
Goldcorp claims that 74 meetings with constituents in San Miguel Ixtahuacán and Sipakapa were held as part of the ILO and World Bank requirements for community consultation. However, in interviews some of those who attended say the “meetings” were in fact just  “presentations on the potential benefits of mining” and included none of the potential costs, no Q&A, and “no consultation”.  Nevertheless, attendees were required to sign-in in order to receive their free lunch. These lists were then allegedly used by Goldcorp as evidence that they had adequately and appropriately consulted the communities. Furthermore, interviews with affected parties in 12 of the most affected communities indicated that some of the “presentations” had initially advertised the potential operation as agricultural (an orchid farm) not mineral so as to acquire community consent. Nevertheless, the majority of interviewees indicated that there had been no “meetings” whatsoever.

Since 2005, residents of San Miguel Ixtahuacan and the smaller communities around the mine, have reported increases in petty crime, drug use, alcohol abuse, prostitution, and offensive behaviour, and complained of decreasing security and public safety.10 Local police (PNC) and Justices of the Peace have confirmed an increase in incidents of crime and delinquency in San Miguel Ixtahuacan since the arrival of the mine.  The costs and benefits have also created intra and inter community conflicts. Amnesty International has reported a number of assaults and assassination attempts on mine critics. In 2009, María Lopez  was shot in face by Marlin workers, allegedly in response to her refusal to sell her land in San Jose Esperanza to the mine. In July 2010 Miguel Ángel Bámaca, a farmer and public health promoter was shot outside his home, he remains afraid to reveal the identity of his attackers. In February 2011, a bus of returning anti-mining protesters was stopped, and its passengers assaulted. Miguel Ángel Bámaca and Aniceto López, a coordinator  with the Front in Defense of San Miguel Ixtahuacan (FREDEMI) were singled out, both were badly  beaten and López  was threatened with death for his public opposition to the mine. 

The Municipality of San Miguel Ixtahuacan & it's constituent communities. The Marlin Mine is largely located in those coloured brown.
THE RESPONSE(S)
Given the documented environmental and social side effects of mining in general and the Marlin Mine in particular, it’s not surprising that to date, forty-seven community referendums have been held across the country in which roughly 700,000 Guatemalans have declared themselves in opposition to metallic mining. Despite the democratic cries and popular choruses shouting “Canada go home!” which sometimes greet Canadian diplomats, workers, and even tourists, the Canadian Government and its embassy in Guatemala remain defiant and maintain their steady support of Canadian investments in the country’s extractive industries.

On May 3, 2011, Canada’s National Contact Point (NCP), released its final statement on a case brought before them by the Front in Defense of San Miguel Ixtahuacan (FREDEMI). The NCP is the interdepartmental committee mandated to ensure that Canadian companies operating abroad were in compliance with the Organization for Economic Co-operation and Development (OECD) Guidelines for Multi-National Enterprises, and is one of the few forums in which residents of less-developed countries where Canadian mining companies operate can voice complaints. FREDEMI’s complaint contained 4 separate allegations:


1. That “Goldcorps land acquisition violated communal property rights and the right to free, prior, and informed consent.”
2. That the “toxic contamination from the mine and the depletion of fresh drinking water” violated the right to health and right to water, respectively.
3. That the “use of explosives for blasting and heavy equipment has caused structural damage to many houses and violates the locals right to property.” 
4. That “retaliation against anti-mine protesters” violated the right to life and security of person.” 


However, after nearly 18 months of deliberation and in spite of the supportive body of evidence published by independent journalists, researchers, activists, and NGO’s, including the IAHRC, ILO, UNSR, Permanent Peoples Tribunal (PPT), and the UN Committee on Elimination of Racial Discrimination (CERD),
[1] the NCP closed the case without any investigation or resolution (See NCP Case 172)


Unfortunately, complicity is not limited to business and government sectors. Unbenounced to most Canadians, a large number of public and private pension funds bare substantial investments in the extractive industries, and company’s like GoldCorp, on their behalf. Despite its dishonourable discharged from the Jantzi Social Index 
(formerly the Canadian Social Investment Database),  GoldCorp’s major stake holders still include, the Canadian Pension Plan, the Ontario Teachers' Pension Plan, and the BC Investment Management Corporation (responsible for public sector investments in BC) among others (See Sustainalytics Press Release). Consequently, virtually every single Canadian is in fact a GoldCorp investor. 

This reality and a recent visit to the Marlin Mine by chairperson, Maude Barlow, led the Council of Canadians to conclude that “Companies like Goldcorp are tarring Canada’s reputation internationally.” Canada has “… promoted and supported the expansion of Canadian mining and investor interests around the world, without regard for human rights or environmental impacts. Enough is enough.” (See CC Press Release)


The impunity in Guatemala that has allowed the Marlin Mine to continue to churn out gold at the same rate as social and environmental violations is a well-documented and devastating phenomenon that dates back generations…” but like Maude Barlow, Grahame Russell of Rights Action notes “ the impunity with which Goldcorp operates is not only a Guatemalan phenomenon. It is profoundly a Canadian phenomenon.” And Canadians have a profound responsibility to respond.





[1] According to Jantzi-Sustainalytics, Goldcorp has accrued the highest dollar sum of environmental fines and penalties of any company currently traded on the TSX.
[2] Reports not previously cited include: OXFAM, 2010; PPT, 2010; CERD, 2010; Lissner, 2010; Cordaid, 2009; Zarsky & Stanley, 2011.


THE ANSWER(S)?

STOP BEING COMPLACENT/COMPLICIT! 



You can start by signing the OXFAM petition to suspend GoldCorp’s Marlin Operation. 
Then… 


Write to your local MP and demand corporate accountability. Bill C-300, “An Act respecting Corporate Accountability for the Activities of Mining, Oil or Gas in Developing Countries” was narrowly defeated in October 2010 but should be reintroduced as a minimum standard of Canadian corporate responsibility.

Complain to the CPP Investment Board and hold the CPP accountable to its own ethical investment policies (see CPP Ethical Investment Policy). It’s our money and we should have a say in how it’s spent.


And Get Involved! Rights Action, The Network in Solidarity with the People of Guatemala (NISGUA), Amnesty International, Breaking the Silence, and Peace Brigades are just a few of the groups working in Guatemala to ensure that human rights aren’t tradable commodities.
 




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