Metal Mining and Human Rights in Guatemala - Peace Brigades ...

Peace Brigades InternationalThe San Martín project was the first business venture ofGlamis Gold outside of the U.S. and Canada, and the firstof its new-generation mines of large size and low cost.Continuing its growth strategy, Glamis Gold acquired theCanadian-based Francisco Gold Corp. (Vancouver) in July2002. The Francisco Gold Corp. was working in the ElSauzal gold mine in the Mexican state of Chihuahua andhad just merged with another Canadian company, MontanaGold Corp, owner of the Marlin gold and silver mine inthe department of San Marcos, Guatemala.The Marlin mine became Glamis Gold’s most significantsource of gold25. It is estimated that the Marlin mine has apotential yield of 2.3 million ounces of gold, and 36 millionounces of silver. The company plans to extract around217,000 ounces of gold and 3.5 million ounces of silverannually26. The total sales of raw and exported product(not refined in Guatemala) is estimate at US$893 million.The total capital investment in the project has reachedUS$ 140 million. For this reason, the World Bank grantedfinancing of US$45 million through the InternationalFinance Corporation (IFC), which provides loans to theprivate sector.The mining permit for the Marlin project was approved inNovember 2003, and since May 2004, the Guatemalancompany Montana Exploradora S.A., a subsidiary of GlamisGold, has been operating the mine28.1.3.2. Mining at the Center of DebateWith Glamis Gold’s arrival in Guatemala, the conflictsurrounding the mining issue intensified again. Politicians,civil society representatives and journalists took positionson the benefits and risks of strip mining, with twoopposing views slowly forming.The country’s development was the main argument tojustify metal mining in Guatemala. The companies, as wellas the government of Oscar Berger argued that mining wasan opportunity that Guatemala should take advantage of.They said it would ensure the well being of the populationin the area of the mining activities. “Mines not only bringinvestment,” said Vice-Minister of Energy and MinesCarolina Roca, “but also rural development and jobs.”29Opponents, on the other hand, suspected that thesearguments are deceitful. Since January 2004, Luis Chávez ofthe Association of Social Organizations of San Marcos(COSAM) has criticized the little consideration given tothe environmental impact of mining.He has decried the minimum benefits that this activitywould have for the population, and noted that thepopulation most affected by the mining operations werenot included in the process of defining their own path todevelopment30.Since December 2003, the environmental group MadreSelva has been calling attention to past practices of GlamisGold in Central America31. In particular, they denouncedthe environmental and social damage caused by theaforementioned San Martin mine in Honduras.The company Entre Mares has been accused of ignoring allpublic referendums on their activities in the affectedpopulations32. Regarding health issues, the Honduranenvironmental organization Madre Tierra reported asignificant increase in skin diseases among residents oftowns near the mine, as well as respiratory, neurologicaland eye diseases33. It was suspected that contamination ofwater supplies was the cause of health and environmentalproblems attributed to the mining operations. This wasconfirmed by the results of water-quality tests requestedby the Archdiocese Parish Services Office and the nongovernmentalorganization Cáritas. The tests revealed thatthe levels of arsenic and mercury were higher than thepermissible level34.In addition, a water shortage due to a lack of rain (causedby deforestation of the area) had a negative impact onlocal agriculture.Residents had to buy their basic necessities (corn, beans,etc.), as they were unable to live off of crops, a situationthat has put the entire area at risk35. Glamis Gold, bycontrast, argued that the Honduras project has had apositive impact, especially around the mine. The companycited social projects it has implemented and the improvedquality of life of its employees36.25. At http://www.glamis.com/26. Ibidem27. The International Finance Corp (IFC) is one of five institutions that makeup the World Bank Group. Each of these 5 institutions has a particularfunction. The IFC’s mission is ”to promote economic development through theprivate sector. With business partners, it invests in sustainable privateenterprises in developing countries and provides long-term loans, guaranteesand risk-management and consulting services to its clients. The IFC invests inprojects in regions and sectors that receive insufficient investment from privatesources. It attempts to find new resources to take advantage of promisingopportunities in markets that are considered too risky by business investorswithout the participation of the Corporation (at http://web.worldbank.org/).28. at http://www.glamis.com29. El Periódico, Thursday, 18 March 2004.30. Prensa Libre, Wednesday, 21 January 2004.31. El periódico, Friday, 26 December 2003.32. Cuffe, Sandra, 2005, Un Desarrollo Patas Arriba y al Revés; actores globales,minería y resistencia comunitaria en Honduras y Guatemala, Rights in Action.33. Report of Madre Tierra, directed by Dr. Juan Almendares Bonilla,Brigadas medicas. (quoted in Op cit. Sandra Cuffe).34. Op cit, Cuffe35. Ibidem36. http://www.glamis.com/11