<strong>Peace</strong> <strong>Brigades</strong> InternationalAs we were prepar<strong>in</strong>g this document, we encountered some limits that should be taken <strong>in</strong>to account when read<strong>in</strong>git.This report was written <strong>in</strong> February 2006 at a time when the national debate on this issue was com<strong>in</strong>g back to theforefront. Therefore, due to time restra<strong>in</strong>ts, the text is limited to the situation prior to that date <strong>and</strong> leaves outevents that took place afterwards, as it was impossible to cont<strong>in</strong>uously update the document. We also encounteredsome problems when attempt<strong>in</strong>g to comb<strong>in</strong>e all of the documents, notes <strong>and</strong> explanations <strong>in</strong>to one document,given the significant amount of op<strong>in</strong>ions <strong>and</strong> documents on the subject.The contributions of everyone who collaborated <strong>in</strong> prepar<strong>in</strong>g this report have been <strong>in</strong>valuable. We hope we wereable to express <strong>in</strong> one way or another most of the multitude of op<strong>in</strong>ions provided, <strong>and</strong> we apologize if some werenot <strong>in</strong>cluded.As a result of this great collaboration, we present a document which we hope will help those entities, enterprises<strong>and</strong> organizations <strong>in</strong>terested <strong>in</strong> the future of <strong>Guatemala</strong> <strong>and</strong> thus <strong>in</strong> human rights <strong>and</strong> the space <strong>in</strong> which those whotake a position on this very controversial subject work.[It should be noted for readers that the spell<strong>in</strong>g used to enunciate “Sipacapa” varies depend<strong>in</strong>g on the source.<strong>Guatemala</strong>n’s state <strong>in</strong>stitutions prefer “Sipacapa”. However, Mayan l<strong>in</strong>guists use “Sipakapa” (see Academia deLenguas Mayas de <strong>Guatemala</strong>, 2001, ToponimiasMayas Sipakapenses, <strong>Guatemala</strong>, ALMG). In this document,“Sipacapa” is used to refer to the municipality, <strong>and</strong> “Sipakapa” to refer to the residents of the community.]IntroductionAt the end of 2003, a national debate on metal m<strong>in</strong><strong>in</strong>g began <strong>in</strong> <strong>Guatemala</strong>. This debate was sparked by the arrival <strong>in</strong> thedepartment of San Marcos of the m<strong>in</strong><strong>in</strong>g company Montana Exploradora de <strong>Guatemala</strong> S.A., a subsidiary of Glamis GoldLtd., based <strong>in</strong> Reno, Nevada. S<strong>in</strong>ce it is an activity that poses elevated health <strong>and</strong> environmental risks, while a veryprofitable <strong>in</strong>dustry at the same time, metal m<strong>in</strong><strong>in</strong>g raised many questions <strong>and</strong> comments about how to strike a balancebetween the benefits <strong>and</strong> risks <strong>in</strong>volved. Such issues as local development, citizen participation <strong>and</strong> environmental impactwere debated. Strong op<strong>in</strong>ions on both sides of the issue quickly led to a polarization of opponents <strong>and</strong> supporters at alllevels of <strong>Guatemala</strong>n society.The <strong>Guatemala</strong>n government, the Catholic Church <strong>and</strong> representatives of Civil Society, popular leaders, entrepreneurs<strong>and</strong> newspaper columnists have engaged <strong>in</strong> a “war of words” to disparage or praise the merits of metal m<strong>in</strong><strong>in</strong>g <strong>in</strong> thecountry. In the most extreme cases, the <strong>in</strong>tense conflicts generated by the debate led to acts of violence <strong>and</strong> harassmentaga<strong>in</strong>st opponents of the m<strong>in</strong>es.In view of the confrontation provoked by the controversy, <strong>Guatemala</strong>n President Oscar Berger Perdomo proposed adialogue between the various actors <strong>in</strong> the conflict. In February 2005, the High Commission on <strong>M<strong>in</strong><strong>in</strong>g</strong> was established todiscuss possible changes to <strong>Guatemala</strong>n legislation to establish adequate means to regulate metal m<strong>in</strong><strong>in</strong>g. In addition, its<strong>in</strong>tention was to debate <strong>and</strong> propose a m<strong>in</strong><strong>in</strong>g policy that would satisfy all actors <strong>in</strong>volved <strong>in</strong> the conflict, i.e. the State, them<strong>in</strong><strong>in</strong>g companies <strong>and</strong> the affected populations.7
<strong>Peace</strong> <strong>Brigades</strong> International1. The History of <strong>M<strong>in</strong><strong>in</strong>g</strong> <strong>in</strong> <strong>Guatemala</strong>.1.1 Before EXMIBALIn <strong>Guatemala</strong>, metal m<strong>in</strong><strong>in</strong>g goes back to pre-colonial days.Orig<strong>in</strong>ally, the metals were used as raw materials formak<strong>in</strong>g tools, weapons1, barter<strong>in</strong>g items or ornaments2.M<strong>in</strong>eral m<strong>in</strong><strong>in</strong>g for profit, as practiced today, began <strong>in</strong> thecolonial period. One aspect of m<strong>in</strong>eral m<strong>in</strong><strong>in</strong>g toemphasize is the exploitation of the <strong>in</strong>digenous people <strong>in</strong>the production centers. Today, little is known about themajority of these centers, s<strong>in</strong>ce they were hidden by theoperators at that time. Some have been discovered near<strong>Guatemala</strong> City or Zunil3.Social conflicts aris<strong>in</strong>g after <strong>Guatemala</strong> became<strong>in</strong>dependent (1821) led to a decl<strong>in</strong>e <strong>in</strong> m<strong>in</strong><strong>in</strong>g activities.This was due to the unrest result<strong>in</strong>g from repeated clashesbetween the various <strong>in</strong>dependence movements <strong>in</strong> theregion. A half century later, the Liberal Reforms of 1871opened <strong>Guatemala</strong>’s borders to trade. <strong>M<strong>in</strong><strong>in</strong>g</strong> activitiesthen depended on the prices of metals on the <strong>in</strong>ternationalmarket. At the beg<strong>in</strong>n<strong>in</strong>g of the 20th Century <strong>and</strong> beyond,m<strong>in</strong><strong>in</strong>g experienced ups <strong>and</strong> downs <strong>in</strong> accordance withmarket fluctuations4.1.2 EXMIBAL: Shap<strong>in</strong>g <strong>Guatemala</strong>’sHistoryIn the mid-20th Century, metal m<strong>in</strong><strong>in</strong>g <strong>in</strong>creasedsignificantly (ma<strong>in</strong>ly gold <strong>and</strong> silver5), giv<strong>in</strong>g rise to the legalbasis on which the activity has been regulated s<strong>in</strong>ce. Afterthe CIA-orchestrated coup d’état that toppled JacoboÁrbenz <strong>in</strong> 1954, m<strong>in</strong><strong>in</strong>g codes were systematically enactedwhich made clear, accord<strong>in</strong>g to Luis Solano6, that the State<strong>in</strong>tended to facilitate the <strong>in</strong>terests of m<strong>in</strong><strong>in</strong>g companies7.At the end of 1962, the Canadian-based InternationalNicke l Company (INCO), parent company ofExploraciones y Explotaciones Metálicas de Izabal, S.A.(EXMIBAL), proposed that the <strong>Guatemala</strong>n regime, thengoverned by General Idígoras Fuentes (1958-1963), enacta new m<strong>in</strong><strong>in</strong>g law, argu<strong>in</strong>g that this would stimulate<strong>in</strong>vestment <strong>in</strong> the <strong>in</strong>dustry8. Thus, <strong>in</strong> 1965 as the <strong>in</strong>ternalarmed conflict began <strong>in</strong>tensify<strong>in</strong>g <strong>in</strong> <strong>Guatemala</strong>, m<strong>in</strong><strong>in</strong>gcompanies, <strong>in</strong> particular EXMIBAL9, played an active role <strong>in</strong>draft<strong>in</strong>g the new national m<strong>in</strong><strong>in</strong>g code. To do this, INCOhired the Peruvian eng<strong>in</strong>eer Emilio Godoy, an expert <strong>in</strong>m<strong>in</strong><strong>in</strong>g legislation.In April 1965, under the new regime of Col. EnriquePeralta Azurdia (1963-1966), who also participated <strong>in</strong> thecoup, a m<strong>in</strong><strong>in</strong>g code based on INCO’s proposals wasapproved. The text def<strong>in</strong>ed the legal framework that, fourmonths later, allowed Col. Peralta to grant INCO 410square kilometers to INCO <strong>in</strong> concessions <strong>in</strong> thedepartments of Alta Verapaz <strong>and</strong> Izabal for 40 years.INCO thus became one of the major l<strong>and</strong> holders <strong>in</strong> thearea.In the late 1960s, <strong>Guatemala</strong>n President Julio CésarMéndez Montenegro (1966-1970)10 proposed a review ofthe relationship between INCO <strong>and</strong> the previous regimeafter meet<strong>in</strong>g with university staff who opposed theconcessions granted to the company. These universityofficials were members of the Faculty of EconomicSciences of the University of San Carlos (USAC) <strong>and</strong> weremembers of a commission <strong>in</strong>vestigat<strong>in</strong>g m<strong>in</strong><strong>in</strong>g activities <strong>in</strong><strong>Guatemala</strong>. The university commission was led by USAC’sdean, Rafael Piedra Santa Ar<strong>and</strong>i11.However, after the military returned to power <strong>in</strong> 1970,the privileged negotiations between m<strong>in</strong><strong>in</strong>g companies <strong>and</strong>the regime were more open12. Companies such asEXMIBAL knew that they must respond to the <strong>in</strong>terests ofthe military to earn favors from the State. For its part,accord<strong>in</strong>g to Solano, the military wanted directconnections with foreign <strong>in</strong>vestors <strong>in</strong> order to ma<strong>in</strong>ta<strong>in</strong>economic control over the grow<strong>in</strong>g m<strong>in</strong><strong>in</strong>g <strong>in</strong>dustry.131. M<strong>in</strong>istry of Energy <strong>and</strong> M<strong>in</strong>es, November 2004, Caracterización de laM<strong>in</strong>ería en <strong>Guatemala</strong>, <strong>Guatemala</strong>, MEM.2. Friends of Lake Izabal Association, ASALI, December 2004, Estudio sobreIndustrias extractivas con enfoque en extracción m<strong>in</strong>era y petróleo. OxfamAmérica. <strong>Guatemala</strong>.3. Op cit. ASALI, 2004.4. Ibidem5. Op cit. MEM, 2004.6. Luis Solano, economist, <strong>in</strong>vestigative journalist <strong>and</strong> social researcher.(Solano, Luis, 2005, <strong>Guatemala</strong>: petróleo y m<strong>in</strong>ería en las entrañas del poder,<strong>Guatemala</strong>, Inforpress Centroamérica).7. See Annex 1: <strong>Metal</strong>s present <strong>in</strong> <strong>Guatemala</strong> <strong>and</strong> their use.8. Letter from Robert C. Boone (Adm<strong>in</strong>istrative Director of EXMIBAL) toJulio Montano Novella (General Director of M<strong>in</strong>es <strong>and</strong> Hydrocarbons,M<strong>in</strong>istry of Energy <strong>and</strong> M<strong>in</strong>es). <strong>Guatemala</strong>, 27 November 1962 (as quotedby the Instituto de Investigaciones Económicas y Sociales de laUniversidad de San Carlos (IIES), 1979, “EXMIBAL contra <strong>Guatemala</strong>“,<strong>Guatemala</strong>, USAC, serie Defensa del Patrimonio Nacional, 2a ed., vol 1).9. La EXMIBAL se dedicó a la extracción de níquel en el municipio de ElEstor, departamento de I zabal (for more <strong>in</strong>formation, refer to op cit,ASALI, 2004).10. The only civilian president of <strong>Guatemala</strong> between 1954 <strong>and</strong> 1986.11. Instituto de Investigaciones Económicas y Sociales de la Universidad deSan Carlos (IIES), 1979, “EXMIBAL contra <strong>Guatemala</strong>“, <strong>Guatemala</strong>, USAC,serie Defensa del Patrimonio Nacional, 2a ed., vol 112. Solano, Luis, <strong>Guatemala</strong>: petróleo13. Ibidem.8