Illegal mining poisons water supply in northern Costa Rica

By Martin Mowforth

At the beginning of March this year (2023), the government of Costa Rica declared a state of emergency in numerous districts in the north of the country due to the contamination of the drinking water supply with mercury used in the illegal extraction of gold in Crucitas. Two weeks earlier the Municipal Council of San Carlos had also declared an emergency in several northern border communities. The ban on water usage affects four aqueducts and all artisanal wells in the area. Since September (2022), the national Institute of Aqueducts and Sewers has provided potable water by tanks and trucks in the affected area.

Crucitas is located close to the border with Nicaragua and the Río San Juan which divides the two countries. At the start of this century, the Canadian company Infinito Gold created an open pit mine to extract the considerable gold reserves there. The company did so despite Costa Rica’s moratorium on open pit mining, although then President Oscar Arias controversially reversed the ban citing ‘national interest’ reasons for doing so.

In November last year (2022), samples of water for human consumption collected by the Ministry of Health showed levels of mercury above internationally accepted standards. The maximum admissible level of mercury in water is 0.001 milligrams per litre. In one school in Crucitas, a sample registered 0.053 mg/L. The regional director of the Ministry of Health, Luis Diego Ugalde Jiménez, described the situation as “very worrying. The water should not be consumed; nor should it be used for cooking or bathing. … We have a genuine environmental emergency here.” Mercury can severely affect the human nervous system.

After significant protests, in 2010 the Costa Rican courts overturned Infinito Gold’s permit on environmental grounds. Infinito Gold turned to the World Bank’s International Centre for the Settlement of Investment Disputes (ICSID) seeking $400 million in damages and lost profits. It took ten years for the ICSID to give a mixed judgement in 2021 which gave both parties to the dispute some gains but decided that the legal costs incurred in the case should be equally shared.

The other effect of the 2010 permit cancellation was the creation of a modern-day gold rush to the Crucitas area, especially after Infinito Gold’s estimation of the quantity of gold in the Crucitas area (1.2 million ounces) became public knowledge. Thus small-scale, illegal mining in the area has persisted since the cancellation of Infinito Gold’s permit and the Environment Ministry (Ministerio de Ambiente y Energia) estimated that in 2018, $197 million worth of gold was exported from this area.

The illegal miners make widespread use of mercury and cyanide in the process of separating the gold from the ore. In their attempts to counter this illegal mining, the Costa Rican police have now established a permanent patrol at Crucitas, and this has had some success in combatting the illegal practices. But the emergencies just declared clearly demonstrate that the problem is far from solved.

At the government’s press conference announcing the state of emergency, President Rodrigo Chaves said that they also had reports of water contamination with cyanide in the area. Chaves also said that despite the presence of 155 police personnel in the area, it is not sufficient to prevent the illegal mining.


Sources:

  • Ministerio de Ambiente y Energía, 30 enero 2020, ‘Situación de la Explotación Ilegal de Oro en Crucitas y las Afectaciones Ambientales Asociadas’, San José.
  • Alejandro Zúñiga, 4 June 2021, ‘Costa Rica and the controversy at Crucitas’, Tico Times.
  • Delfino, 23.02.23, ‘Grito al cielo’, Reporte Delfino
  • Astha Garg, 23.02.23, ‘Illegal Gold Mines Force Costa Rica to Declare Water Emergency’, Tico Times, San José
  • Vinicio Chacón, 02.03.23, ‘Gobierno declara emergencia por contaminación por mercurio de fuentes de agua en Crucitas’, Semanario Universidad
  • Tico Times, 03.03.23, ‘Water Crisis Rocks Costa Rica’s North: State of Emergency Declared’, Tico Times, via AFP

 

 

US Congressional representatives seek cancellation of the Los Pinares mine in Carlos Escaleras Park

By Jorge Burgos, for Criterio HN

15 August 2023

Translated by Martin Mowforth

We are grateful to Jorge Burgos for his permission to translate and reproduce his article from Criteriohn, a digital communications media that reports on and analyses news from Honduras. https://criterio.hn/

The US representatives mentioned here  also seek to combat corruption and to protect the environmentalists in the Bajo Aguán region from further attacks and violence. 

Tegucigalpa

 

Today, US Congressional representatives Jan Schakowsky, Jesús «Chuy» García, Ilhan Omar and Raúl M. Grijalva along with 16 of their colleagues sent a letter to the US Secretary of State, Antony Blinken, requesting that the US Embassy in Honduras should continue to involve itself with the Honduran government in combatting corruption whilst at the same time protecting environmentalists in the Bajo Aguán region from future assaults and violence and see to it that their demands are dealt with clearly and justly.

This includes the definitive cancellation of the Los Pinares mining licences in the Carlos Escaleras Botaderos National Park, said the representatives’ petition. On the 15th June [2023] Oqueli Dominguez Ramos, an opponent of the illegal installation of the Los Pinares open-cast iron ore mine, was assassinated in his house. His mother, Catalina Ramos, was also wounded with a gunshot to the leg.

Scarcely five months before that, another of Catalina’s sons, Ali Dominguez, was also assassinated by men on motorbikes when he returned home with his friend Jairo Bonilla. Catalina’s third son, Reynaldo, felt obliged to abandon his home after receiving threats related to his opposition to the mine.

The Los Pinares mining company was initially a national company forming part of the giant US iron and steelworks company Nucor and the Honduran conglomerate EMCO Group which was owned by Ana Facussé and her husband Lenir Pérez. EMCO and other companies belonging to Ana Facussé’s father, the late Miguel Facussé, have long been accused of violence, illicit influence in the Honduran justice system and even of having connections to narcotrafficking.

The interests of the Facussé family in the Bajo Aguán region, where the Los Pinares mine is found, began with what were widely denounced as massive, violent and illegal appropriations of agrarian reform land and Indigenous Garífuna lands by the Dinant Corporation, property of Miguel Facussé. This year alone, seven land rights defenders involved in disputes with Dinant have been assassinated.

The Congressional representatives have concluded, “We are concerned about the level of support that the corporations associated with the Facussé family have enjoyed from the international community, including access to financing from the multilateral development banks and the investment from an important US corporation, despite the evidence of its participation in corruption, violence and other human rights violations.”

“We are also concerned that the actions of this type of company and the failure to counter them undermine the objectives of the Biden administration in the region,” added the representatives in their letter to Blinken.

Although the legislators “feel encouraged by the important efforts of the current Honduran government to support the investigations into these violent networks” via diverse initiatives, the legislators are pushing the US State Department to commit to the Honduran government to guarantee the definitive cancellation of the Los Pinares mining licences.

Furthermore, the representatives also requested that the Special Attorney for Crimes Against Life (based in Tegucigalpa) should investigate the assassinations of human rights defenders and environmentalists and should ensure the future protection and security of human rights defenders and environmentalists in the Bajo Aguán region.

As well as Schakowsky, García, Omar and Grijalva, signatories to the letter include representatives Henry C. «Hank» Johnson, Jr., Joaquín Castro, Jamie Raskin, Barbara Lee, Kevin Mullin, Cori Bush, Adriano Espaillat, Paul D. Tonko, Jimmy Panetta, James P. McGovern, Veronica Escobar, Lloyd Doggett, Jared Huffman, Rashida Tlaib, Linda T. Sánchez and Ritchie Torres.


Jorge Burgos

Has numerous years of experience and likes to practice ‘uncomfortable’ journalism which reaches the platforms of power, seeking changes in the style of governance to combat corruption, and revealing what power always wants to cover up.

jorgeburgos@criterio.hn

Congresistas de EE UU piden cancelación de licencia a la minera Los Pinares en parque Carlos Escaleras

Jorge Burgos, Criterio HN

15 Agosto 2023

Agradecemos a Jorge Burgos su autorización para la reproducción de su articulo de Criteriohn, un medio de comunicación digital que recoge, investiga, procesa, analiza, transmite información de actualidad y profundiza en los hechos que el poder pretende ocultar.

 Los representantes estadounidenses piden además combatir la corrupción y proteger a los ambientalistas en la región del Bajo Aguán de futuros ataques y violencia

 

Tegucigalpa.-  Hoy, los congresistas estadounidenses Jan Schakowsky, Jesús «Chuy» García, Ilhan Omar y Raúl M. Grijalva junto a 16 de sus colegas, enviaron una carta al Secretario de Estado de los Estados Unidos, Antony Blinken, solicitando que la Embajada de los Estados Unidos en Honduras involucre continuamente al gobierno hondureño para combatir la corrupción mientras protege a los ambientalistas en la región del Bajo Aguán de futuros ataques y violencia, y velar porque sus demandas sean atendidas plena y justamente.

Esto incluye la cancelación definitiva de las licencias mineras Los Pinares en el Parque Nacional de la Montaña Carlos Escaleras Botaderos, dice la petición de los congresistas.

El 15 de junio, Oquelí Domínguez Ramos, un opositor a la instalación ilegal de la mina de mineral de hierro a cielo abierto Los Pinares fue asesinado en su casa. La madre de Oquelí, Catalina Ramos, resultó herida de bala en la pierna.

Apenas cinco meses antes, el otro hijo de Catalina, Ali Domínguez, también fue asesinado por hombres en motocicletas cuando regresaba a casa con su amigo Jairo Bonilla. El tercer hijo de Catalina, Reynaldo, se vio obligado a abandonar su hogar después de recibir amenazas específicas debido a su oposición a la mina.

La compañía minera Los Pinares fue inicialmente una empresa conjunta entre el gigante siderúrgico estadounidense Nucor y el conglomerado hondureño EMCO Group, propiedad de Ana Facussé y su esposo Lenir Pérez.

EMCO y otras corporaciones respaldadas por el padre de Ana Facussé, Miguel Facussé (ya fallecido), han sido acusadas durante mucho tiempo de violencia, influencia ilícita en el sistema judicial hondureño e incluso conexiones con el narcotráfico.

Los intereses de Facussé en la región del Bajo Aguán, donde se encuentra la mina Los Pinares, comenzaron con lo que se denuncia ampliamente como apropiaciones masivas, violentas e ilegales de la reforma agraria y las tierras indígenas garífunas por parte de la corporación Dinant de propiedad de Miguel Facussé.

Solo este año, siete defensores del derecho a la tierra en disputas con Dinant han sido asesinados.

«Estamos preocupados por el nivel de apoyo que las corporaciones asociadas con la familia Facussé han disfrutado de la comunidad internacional, incluido el acceso al financiamiento de los bancos multilaterales de desarrollo y la inversión de una importante corporación estadounidense, a pesar de la evidencia de participación en corrupción, violencia y otras violaciones de derechos humanos», concluyeron los legisladores.

«Nos preocupa además que las acciones de este tipo de empresas y el fracaso para contrarrestarlas socaven los objetivos de la Administración Biden en la región», manifestaron, además, los congresistas en su misiva a Blinken.

Si bien los legisladores «se sienten alentados por los importantes esfuerzos del actual gobierno hondureño para apoyar las investigaciones sobre estas redes violentas» a través de diversas iniciativas, los legisladores instan al Departamento de Estado de los Estados Unidos a comprometerse con el gobierno hondureño para garantizar la cancelación definitiva de las licencias mineras de Los Pinares.

También, piden la investigación de los asesinatos de defensores de derechos humanos y ambientalistas por parte de la Fiscalía Especial de Delitos contra la Vida con sede en Tegucigalpa, y la futura protección y seguridad de defensores de derechos humanos y ambientalistas en la región del Bajo Aguán.

Además de Schakowsky, García, Omar y Grijalva, los firmantes de la carta incluyen a los representantes Henry C. «Hank» Johnson, Jr., Joaquín Castro, Jamie Raskin, Barbara Lee, Kevin Mullin, Cori Bush, Adriano Espaillat, Paul D. Tonko, Jimmy Panetta, James P. McGovern, Veronica Escobar, Lloyd Doggett, Jared Huffman, Rashida Tlaib, Linda T. Sánchez y Ritchie Torres.


Jorge Burgos

Tengo algunos años de experiencia y me encanta practicar el periodismo incómodo que toque los tinglados del poder, buscando cambios en la forma de gobernar y procurar el combate a la corrupción, develando lo que el poder siempre quiere ocultar.

jorgeburgos@criterio.hn

Panama Supreme Court declares mining contract illegal

In the November/December 2023 additions to The Violence of Development website, Martin Mowforth reported on protests and blockades in Panama that brought the country to a standstill. Here he reports again on developments in this ‘people versus the government’ conflict.

By Martin Mowforth

February 2024

Key words: mining protests; road blocks; First Quantum Minerals; Minera Panama (formerly Minera Petaquilla.

 

On 28 November 2023, the Supreme Court of Panama declared that a renewal contract that allowed a Canadian mining company (First Quantum Minerals) to continue operating Central America’s largest open pit copper mine was “unconstitutional”.

For over a month before the Supreme Court judgement, the renewal of the contract had given rise to massive protests that spread throughout the country causing blockages on major highways that impeded the passage of national and international trade. According to the EFE News Agency, the blockages had caused losses in the order of millions of dollars and shortages of various goods in cities. Newspaper articles frequently talked of the country being brought to a standstill, as the previous entry into this section of The Violence of Development website records.

Groups taking part in the protests included Indigenous peoples, trade unionists, schoolteachers, students, and environmentalists.

The concession rights for the Cobre Panama project were obtained in 1997 under Law 9 by Minera Petaquilla, now known as Minera Panama SA, according to First Quantum. Minera Panama is a majority owned subsidiary of First Quantum. The court indicated in its decision that Panama’s National Assembly accepted a contract that didn’t follow the correct legal process and therefore contravened the constitution.

Environmentalist Raisa Banfield declared the judgement as “a victory for popular democracy”, and Ombudsman Eduardo Leblanc asserted that “democracy worked”. He also noted that after dividing the country, it was now necessary “to move towards recovery and reconciliation”.

Following the judgement, protestors began to remove the blockades on major highways.

First Quantum Minerals has notified the government of Panama that it intends to present arbitration claims, under a free trade agreement between Panama and Canada. Once again, then, claims made by transnational corporations to arbitration courts such as the World Bank’s International Centre for the Settlement of Investment Disputes (ICSID) demonstrate their inherent injustice through their attempts to prevent countries and communities making decisions and taking action against the despoliation of their environments and societies.


Sources:

  • AFP, 28 November 2023, ‘Panama Court Nixes Major Mining Deal’.
  • Ariadne Eljuri, 29 November 2023, ‘Panama Supreme Court Declares Mining Contract Illegal’, Orinoco Tribune.
  • The reader is also referred to the numerous sources cited in the previous article in this section of the website.

 

Accusations against the mining industry

This figure is referred to in the book as ‘The accusations’ (Page 86)

Accusations against the mining industry are given in Chapter 5 of the book under the sub-heading ‘The accusations’, but a summary table is also given here.

  • land appropriation – laws actually allow it
  • forced evictions – laws actually allow it
  • selling short on compensation
  • contamination of water – See the use of cyanide
  • contamination of land and air – See the use of cyanide
  • contamination of people – See the use of cyanide
  • disregard for national and local laws
  • disregard for human rights
  • (extreme) violence against opponents
  • bribery of local officials
  • lying

The Honduran government’s General Mining Law

The law provides for the following:

There is one form of legal title called a ‘mining concession’

Opposition to the granting of a mining concession must be made within 15 days of the publication of the application for a mining concession.

The rights of the mining concession holders include:

  • The free use of unproductive state lands
  • The right to ask permission to use third parties’ lands
  • Use of water both inside and outside of the area of the mining concession
  • To have legal petitions answered by the mining authority within a specified time or else they will be considered automatically approved
  • The right to petition the state to forcibly remove people from their land where their presence makes the use of the mining concession impossible.

The obligations of the concession holders are:

  • To produce at least $500 per hectare (ha) p.a. until the 8th year after the granting of the concession
  • To pay a territorial tax of between $0.25 per ha. p.a. for a new concession and $3 per ha. p.a. for concessions older than eight years.
  • To pay a penalty amount if minimum production is not reached.
  • To act subject to applicable safety, hygiene and environmental norms
  • To pay a tax on rent, sales (does not apply to exports) and a municipal tax (1 per cent of crude worth of sales)

Requirements for an Environmental Impact Study (EIS) include:

  • The Department for Evaluation and Environmental Monitoring (DECA) inspects an area where a company is proposing to mine and decides whether it should be a Category 1or a Category 2 mine
  • An EIS is not required for Category 1 mines
  • Category 2 mines are generally more environmentally sensitive or very large.
  • DECA provides the terms of reference for the EIS which is conducted by a company selected by the mining company from a government-approved list
  • The mining company pays for the EIS
  • After review of the EIS, a formal opinion is released and includes a list of measures to be complied with in order for the mining license to be granted
  • Inspection of mining operations is carried out by DECA and DEFOMIN (Department for the Promotion of Mining)
  • The law refers to the relocation of people and use of water according to the law, but there are no established laws that relate to these matters.

Making a denunciation of an environmental offence is relatively easy and accessible, although no legal assistance is available.

Enforcing constitutional rights is highly problematic as no judges specialize in constitutional law which is rarely if ever used by the community or civil society.


Major source
Centre for Economic and Social Rights (CESR) (2001) Report of a fact-finding mission (CESR-FFM) to Honduras in March/April 2001. New York. (Pp.1-10)


Please note that the current post-coup Honduran government – sometimes referred to as ‘coup-2’ –enacted a new mining law in January 2013 after revision by advisors funded by the Canadian government. Miriam Miranda, General Coordinator of OFRANEH, said “Right now [resources] are up for grabs and there’s an unparalleled exploitation of that by transnational and foreign capital. There’s no respect for international laws and international jurisprudence on the rights of indigenous peoples.”

Artisanal and small-scale mining

What, then, are we to make of the mining industry? The transnational mining companies appear to operate like gangsters. Despite the companies’ protestations and propaganda, the evidence and testimony about their extreme misdemeanours seem to be undeniable and overwhelming. Their attempt to win us over with the notion of ‘green mining’ must rate as one of the top examples of corporate ‘greenwash’. But we cannot simply dismiss the industry as gangster-like with no redeeming features – so many of our modern lifestyle props and artefacts depend on the mining of minerals: quite apart from the jewellery, gold and coins, gold and many other minerals are used in electrical switches and contacts, components of satellite dishes, computers, telecommunications, televisions and other electronic equipment, medical equipment, in dentistry and many other walks of life.

In today’s world, the idea of a blanket ban on the extraction of minerals from the earth’s surface – the ‘Leave it in the Ground’ campaign – is just too extreme and would be treated as laughable not just by proponents of the mining industry but also by the majority of the world’s population who have benefitted in some way or other from the ‘modernisation’ and globalisation of the world’s economy. So, if the transnational mining companies are not prepared to humanise themselves and to adapt their behaviour to ensure the survival of the planet and its communities – and that prospect certainly seems unlikely – then are there any means by which mining can be made less damaging and more tolerable than it is at present? Is there, for instance, such a thing as artisanal and small-scale mining? Or is that just a hark back to the golden days of the nineteenth century gold rushes?

The International Labour Organisation (ILO) reports that worldwide “between 11 and 13 million people directly depend on ASM [artisanal and small-scale mining] for their survival, and 80 to 100 million people engage in ASM as a seasonal activity – more than the number of people employed in large-scale mining.” And “small-scale miners produce 20-25% of all non-fuel minerals worldwide.”[1] The variability in the above data is no less obvious in the region of Central America. In 2003, however, Eduardo Chaparro Ávila gave estimates of the numbers employed in small-scale mines as 3,000 – 6,000 in Nicaragua and 3,000 – 4,500 in Panamá.[2]

ASM, then, is clearly a significant sector of the mining industry, but that does not necessarily mean that it is an answer to the problems caused by large-scale mining. In fact, the evidence suggests that problems associated with water pollution, soil pollution, labour exploitation and health issues are as great for those involved in the small-scale activity as they are for those affected by the large-scale activity. Indeed, the process of separating gold from the earth that contains it requires the use of mercury which has various effects on human health. Reporting on ASM in the Nicaraguan Mining Triangle, James Rodríguez lists these as “disruption of the nervous system, damage to brain functions, DNA and chromosomal damage, allergic reactions, skin rashes, fatigue, headaches, sperm damage, birth defects and miscarriages.”[3] An article by Leslie Josephs about artisanal mining in Costa Rica adds nerve damage and renal failure to this list.[4]

It is perhaps not surprising that the majority of the people who are prepared to undertake such dangerous work are from the poorest and most marginalised sectors of society. As Cristina Echavarría, director of the Mining Policy Research Initiative (MPRI) of the International Development Research Centre (IDRC) described to the Conference of Montreal: The International Economic Forum of the Americas in June 2009, “A negative image persisted and expanded of ASM as an unsustainable and unacceptable way of life. Extreme poverty and inequity are also unsustainable and unacceptable. And it is mostly the poorest people, often women and children, who end up in this kind of mining as a last, hopefully temporary, resort to make a living.”[5]

Marty Logan reports that up to the turn of the century, “governments and multilateral institutions operated in the hope that ASM would disappear,” but also that “it became painfully clear that ASM was not going to disappear.” [6] It is also clear that both large-scale and small-scale mining are generally very destructive of the health of humans, of animals and of the environment.

Given this state of affairs, in 2001 the World Bank launched the Communities and Small-Scale Mining (CASM) initiative whose stated goal is “to reduce poverty by improving the environmental, social and economic performance of artisanal and small-scale mining in developing countries.”[7] Amongst other specific objectives CASM tries to formalise ASM so that it can work with the large-scale sector of the industry to the mutual benefit of both. The Mines And Communities organisation points out that this is “certainly a welcome advance on earlier stances which tended to regard small-scale mining as, at best, a hindrance, at worst, as criminal.”[8]

In 2008 in collaboration with the United Nations Educational, Scientific and Cultural Organisation (UNESCO), the MPRI stated its intention and vision that within ten years ASM would be “a formalised, organised and profitable activity that uses efficient technologies and is socially and environmentally responsible.”[9] The vision was soon endorsed by the ILO, the World Bank and a range of NGOs, governments and bilateral programmes.

In early 2010 the International Council on Mining and Metals (ICMM) published a report entitled ‘Working together – how large-scale miners can engage with artisanal and small-scale miners’.[10] Whilst praising some aspects of the report, the organisation Mines And Communities suggests that, despite its stated motives and fine words, this simply does not go far enough to address the shocking nature of much large-scale mining: “It fails … to challenge the unacceptable economic stranglehold some of them [the companies] currently wield over governments and land-based labourers alike.”[11]

In commenting on a report by Earthworks[12], a research and action group on issues of mining, Mines And Communities is critical of the ICMM’s prescription that ASM should lie largely with governments and large-scale mining companies. Instead, it suggests that artisanal and small-scale miners should empower themselves in order to assert their rights. It further suggests that “In the process they are likely to improve their health, gain some economic stability, and be given access to buyers and processers of their products, willing to pay a ‘fair’ price.”[13]

Earthworks believes that it is necessary for artisanal and small-scale miners to adopt principles and standards for responsible ASM and that a range of NGOs could provide such standards. Moreover, there are some NGOs which are in a position to provide a certification system which

would include practices such as respecting human rights; obtaining community consent; guaranteeing revenue sharing and transparency; not operating in areas of armed conflict; respecting workers’ rights and health and safety standards; not using mercury or other toxic chemicals; and not operating in protected areas, among others.[14]

There is no question that such notions are laudable and deserve the support of all parties directly or indirectly involved in the activity of ASM, but their realisation in practice is likely to require far more effort than a statement of those fine words. In Central America, the Costa Rican government is attempting to regulate artisanal and small-scale miners by “urging them to form cooperatives, apply for official mining concessions with environmental permits and pay taxes.”[15] One of the prime reasons for this effort is the government’s concern that these informal miners dump dangerous chemicals into water supplies. Additionally, it is known that some of the miners regularly handle mercury with their bare hands. By the end of 2009, the government estimated that about a half of the miners were already organised into officially recognised cooperatives.

The Costa Rican programme is a worthy one, but in other countries regulation of the ASM sector has not yet featured on the political scene. Moreover, the activities of the ASM sector are often informal and remote, and even illegal, and thus are often beyond the reach of legislators and officialdom.

The prospect that the ASM sector could replace or stand in for the large-scale mining corporations is simply not yet on the horizon.


[1] Marty Logan (2009) ‘Making Mining Work: Bringing poverty-stricken, small-scale miners into the formal private sector’, International Development Research Centre (IDRC), 8 September 2009, www.idrc.ca/en/ev-62120-201-1-DO_TOPIC.html (accessed 11.03.10).
[2] Eduardo Chaparro Ávila (2003) ‘Small-scale mining: a new entrepreneurial approach’, United Nations Economic Commission for Latin America and the Caribbean (ECLAC/CEPAL), Natural Resources and Infrastructure Division.
[3] James Rodríguez (2010) ‘Gold Fever: Artisanal and Industrial Extraction in the Nicaraguan Mining Triangle’, http://upsidedownworld.org/main/nicaragua-archives-62/2382-gold-fever-artisanal-and-industrial-extraction-in-the-nicaraguan-mining-triangle (accessed 13.02.10).
[4] Leslie Josephs (2009) ‘Costa Rica assails big risks taken by small miners’, Reuters, 24 December 2009.
[5] Op.cit. (Logan).
[6] Op.cit. (Logan).
[7] Communities and Small-Scale Mining website, www.artisanalmining.org (accessed 14.03.10).
[8] Mines And Communities website, ‘Mining lobby group advocates engaging with artisanal miners’, www.minesandcommunities.org/article.php?a=9890 (accessed 11.03.10).
[9] Op.cit. (Logan).
[10] International Council on Mining and Metals (ICMM) (2010) ‘Working together – how large-scale miners can engage with artisanal and small-scale miners’, downloadable from www.icmm.com/page/17638/new-publication-on-engaging-with-artisanal-and-small-scale-miners (accessed 14.03.10).
[11] Op.cit. (Mines and Communities website).
[12] Earthworks (2010) ‘The Quest for Responsible Small-Scale Gold Mining’, downloadable from http://earthworksaction.org/pubs/Small-scale%20gold%20mining%20initiatives%20comparison-2010.pdf (accessed 14.03.10).
[13] Mines And Communities website, ‘The Quest for Responsible Small-Scale Gold Mining’, www.minesandcommunities.org/article.php?a=9891 (accessed 10.03.10).
[14] Op.cit. (Earthworks, 2010).
[15] Op.cit. (Josephs, 2009)

The Petaquilla Mine, Panama, and opposition to it

The controversial Petaquilla mining concession is located in the Donoso district in the north-central provinces of Coclé and Colón, covering an area of 13,600 hectares.

In 1997 the Panamanian government granted a concession for gold and copper mining to the company Minera Petaquilla, S.A. Two separate mining projects are being developed with Panamanian and Canadian investment – an open-pit gold mine, and one of the largest open-pit copper mines in the world.

The fierce opposition to the Petaquilla mining project from civil society groups and local communities stands in stark contrast to the company’s declarations of self-praise – see Below. The benefits in terms of a limited number of low-paid jobs seem scant, when compared to the environmental costs, including the contamination of their water supply, and the loss of land and forest cover. The anti-mining movement in Panama has been gaining momentum and there have been numerous protests against the Petaquilla mines. Protests in May 2009 blocked access to both mines for two weeks.

Conservationists point to the devastating and irreversible environmental impacts on the region, which is part of the Mesoamerican Biological Corridor. Concerns include the building of access roads in a remote area of high biodiversity, destruction of primary forest, and siltation and pollution of rivers.

In August 2008, the NGO Sustainable Harvest International declined funding from Petaquilla Copper Ltd to undertake sustainable development programs with communities in the region. The proposed collaboration was deemed irreconcilable with their commitment to conservation. Their president Florence Reed stated:

Even if Petaquilla were truly committed to full mitigation and remediation, this mining venture will result in a legacy of environmental and social disruption because of the immense area that will be deforested and the number of local indigenous communities that will be displaced.[1]


Sources:
MiningWatch Canada, November 2008, ‘Important information about the Petaquilla mining project in Panama’, http://www.miningwatch.ca/updir/Petaquilla_background.pdf (Accessed 5 August 2009).
MiningWatch Canada, January 2009, ‘Panamanian rainforest communities threatened by mining’, http://www.miningwatch.ca/index.php?/Panama/Petaquilla_alert (Accessed 5 August 2009).
[1] Sustainable Harvest International, August 2008 http://www.sustainableharvest.org/PR82008.cfm (accessed 5 August 2009)

The use of cyanide in gold mining

This figure is referred to in the book as X.XX (Page XX)

In recent years the use of cyanide in gold mining has become the dominant means by which gold is extracted from a body of ore. The mercury amalgamation process had previously been used but recovered only about 60 per cent of an ore body’s gold. In contrast, leaching finely ground ore with cyanide can recover up to 97 per cent of the ore body’s gold.

The process involves:

    1. Removal of all topsoil from the area to be mined.
    1. Large open pits, up to a mile wide, created to extract the ore.
    1. Transport of raw ore in large trucks to crushing machines.
    1. Crushed material built into heaps over which cyanide is sprayed.
    1. The cyanide trickles down through the ore and bonds with microscopic specks of gold. A pad underlying the heap channels the solution into a holding pond.
    1. The gold laden cyanide solution flows over activated carbon; the carbon bonds to the gold while the cyanide is drawn off for re-use on the heap.
    1. Other chemicals are used to separate the gold from the carbon.
  1. The gold is then purified.

Mining companies state that under sunlight cyanide in water rapidly breaks down into largely harmless substances such as carbon dioxide and nitrate. It also tends to react readily with many other chemical elements, however, and is known to form hundreds of different compounds. While generally less toxic than the original cyanide, many of these compounds are known to be toxic to aquatic organisms, to persist in the environment for long periods and can be accumulated in plant and fish tissues.

People’s health is endangered when cyanide-laden waste is released into water used for drinking and bathing. People who live in close proximity to cyanide heap leaching pads also report increased respiratory and skin diseases.


Source:
Centre for Economic and Social Rights (2001) ‘Report of a fact-finding mission (CESR-FFM) to Honduras in March/April 2001’, New York, pp.1-2, 10-11.

Las Crucitas Mine, Costa Rica

The Crucitas gold mine in northern Costa Rica offers another example of government determination to grant mineral exploration and exploitation concessions in the face of substantial local, national and international opposition, despite the low return to local and national government for the damages that may result from these operations. For nearly two decades the Crucitas mine has been a source of divisions in Costa Rican society and government.

The Crucitas open-cast mine is located in the province of Alajuela 3 miles from Costa Rica’s northern border with Nicaragua. The mine covers an area of 55 hectares, with a depth of approximately 60 meters. It is owned by Canadian mining company, Infinito Gold Ltd, which hoped to extract around 85,000 ounces of gold annually, believing that the mine holds up to 1.2 million ounces of gold.[1] An investment of US$66 million was required to begin the project, which was declared by ex-President Óscar Arias as a project of “public interest.”[2] Infinito Gold predicted that the mine would bring 300 direct jobs and 1,300 indirect jobs to an area with few other sources of employment.[3] Supporters of the project believe that it would bring “economic opportunity to an economically depressed corner of Costa Rica.”[4]

Although the Crucitas project was first proposed in 1993 and agreed in 2000, its construction has not yet been approved by the Costa Rican government.[5] In 2002, then-President Abel Pacheco announced a presidential decree prohibiting open-cast mining, stating that: “we have many reasons for rescinding these [gold mining] contracts, and if they sue us for compensation it will be cheaper than paying for the loss of the country and its environment.”[6] The ban was invalidated, however, in 2008 during Óscar Arias’ Presidency, prompting a new surge in opposition from environmental groups.

The construction of the Crucitas mine would result in the felling of 291 hectares of tropical forest in an area which is home to endangered species such as the great green macaw.[7] Further concerns revolved around the use of cyanide in the extraction process. According to Andrés Soto, a spokesman for Infinito Gold, the whole extraction process would work as “a closed circuit” in which the cyanide would eventually be destroyed without releasing chemicals into the environment.[8] Members of the Association for the Preservation of Wild Flora and Fauna claim that cyanide toxins would be present in airborne dust particles and rain runoff resulting in a decreased quality of air and water in northern Costa Rica.[9]

There have also been concerns from Nicaraguan environmental groups who believe that the chemicals used in the extraction process will pollute the San Juan River which forms a natural border between Nicaragua and Costa Rica. Jhonny Gutiérrez, mayor of San Carlos near the San Juan River in Nicaragua, believes that they are “surrounded by a system of neoliberal consumption that cares little for the environment and that prefers to turn natural resources into capital.”[10]

In October 2008, the Costa Rican Supreme Court ordered Infinito Gold to suspend all construction activity at the Crucitas mine after local environmental groups called for an injunction. Although construction was temporarily halted, in April 2010 Infinito Gold was granted permission by the Constitutional Court to continue with the construction of the mine. When Laura Chinchilla took office in May 2010, one of her first acts was to announce a ban on all new open-cast mining projects but this had little impact on the Crucitas project, as it had already been approved by previous governments and was not included in the new legislation.

The change in government sparked many environmentalists back into action, and in July 2010 a group of protesters embarked upon a 170 km march from the presidential palace in San José to the Crucitas mine in an attempt to convince the government to put an end to the project.[11] Environmentalists, university groups and local community groups continued to file complaints and petitions to the Costa Rican courts.[12] In November 2011, the Costa Rican Supreme Court’s Civil and Administrative Law Branch annulled the mining concession issued to Industrias Infinito (the Costa Rican subsidiary of Infinito Gold) and dismissed the company’s appeals. In October 2012, the company submitted an appeal for the concession to be re-considered. In April 2013, the company claimed that the ban was in breach of the Canada-Costa Rica bilateral investment treaty and threatened the Costa Rican government with a US$1 billion lawsuit if the dispute could not be settled amicably within six months.[13]


[1] Infinito Gold Ltd. (2008) Company Highlights, www.infinitogold.com/s/Home.asp
[2] Tania Alvarez (2009) ‘Verde vs. dorado, bosques vs. minería, vida vs…’. Ecoportal, www.ecoportal.net/content/view/full/89961
[3] Ibid.
[4] Mike McDonald (5 July 2010) ‘Environmentalists to Crucitas gold mine: Take a hike’, Tico Times, San José.
[5] Ibid.
[6] Inside Costa Rica (2010) ‘President Chinchilla Signs Decree Banning Open Pit Mining’, www.insidecostarica.com/dailynews/2010/may/10/costarica10051003.htm
[7] Universidad Para la Paz (2009) Newsflash December 18, www.upeace.org/about/newsflash/2009/1218/crucitas%20information.pdf
[8] Cited in Mines and Communities (2008) ‘Costa Rica: Fears of environmental impact on the San Juan River’, The Miami Herald, www.minesandcommunities.org/article.php?a=8672
[9] Mike McDonald (23 April 2010) ‘Crucitas Gets Green Light’, Tico Times, San José.
[10] Cited in Tatiana Rothschuh (2010) ‘Grita de alcaldes a minería en Crucitas’, El Nuevo Diario, http://impreso.elnuevodiario.com.ni/2010/04/29/departamentales/123327
[11] Latin America Press (2010) ‘Costa Rica Government Considers Overturning Gold Mining Decree’, Eurasia Review, www.eurasiareview.com/201007286072/costa-rica-government-considers-overturning-gold-mining-decree.html
[12] Ibid.
[13] Kerry Hall (2013) ‘Canadian gold company threatens Costa Rica with $1bn lawsuit’, www.mining.com/canadian-gold-company-threatens-costa-rica-with-1bn-lawsuit