JANUARY/FEBRUARY 2005
Co-op
America’s
Live healthier. Save more. Invest wisely. Make a difference.
REAL
Dear Readers,
Happy New Year! Are you
starting the year with some
resolutions about making
life better for yourself, your
family, and our shared world?
Yes?! Then turn to Real
Money for a helping hand all
year long. That’s our joyful
mission—to make it easier
for you to take more steps
for sustainable living.
We’re planning each issue for
2005 to give you practical
ideas for the many sides of
your life—for example, the
money and resource saver in
you (see “Get What You
Need Without Money,” p. 4),
your adventurous spirit (see
“Trips that Can Change Your
Life,” p. 2), and your concerns
as a global citizen (see our
cover story on gold).
Most importantly, we hope
you’ll find that Real Money
will help bring you the joy
and satisfaction of living in
harmony with your values
and the Earth. Together, as
we all take these steps, we
are creating a better future
for the planet and its people.
For the future,
Alisa Gravitz
Executive Director
inside
2 Trips That Can Change
Your Life
4 Get What You Need
Without Money
8 Real Stock Picks
LIVING
Gold Loses Some Glitter
The gold industry is responsible for releasing toxins and adversely affecting
communities and workers around the world. Here’s what you can do.
W
hen the Canadian mining company
Manhattan Minerals wanted to
open a gold mine in the town of
Tambogrande in northwestern Peru, they
promised to provide jobs and tax revenue, to
build infrastructure, and to erect new homes
for the families who would be relocated away
from the mine’s area. Local residents weren’t
willing to accept the deal, though. They feared
that pollution from the mine would destroy
agriculture in their valley, which produces
40 percent of Peru’s limes and mangos.
“I’ve been to other mining communities, so
they can’t lie to me,” town clerk Rodrigo Zapata
told the Associated Press. “We know it’s going
to pollute the land and water. In 20 years, it
will put an end to the life we’ve always lived.”
Tambogrande residents organized protests
against the mine for years, and Peru’s government finally rejected Manhattan Mining’s proposal on official grounds that included an
inadequate environmental impact assessment.
For now, Tambogrande residents need not fear
the human rights abuses and environmental
devastation that so often accompany gold
mining, but many other communities are not
so fortunate. Read on to learn about the concerns surrounding gold mining and what you
can do to help solve these problems.
Toxic Treasure Hunt
According to Payal Sampat in a Worldwatch
Institute report (State of the World 2003), the
process of mining, processing, and refining
minerals “consumes close to ten percent of
world energy, spews almost half of all toxic
emissions from industry in some countries,
and threatens nearly 40 percent of the world’s
undeveloped tracts of forests—while generating only a small share of jobs and economic
output.”
Though all mineral mining is energyintensive and polluting, the environmental
impacts of gold mining are particularly severe.
The majority of gold mining today takes place
in “open-pit” mines, where machines move
massive amounts of earth from an area and
leave enormous craters, some so large that
they’re visible from space. The ratio of discarded earth and rock to marketable gold is
particularly high: according to Sampat,
about 300,000 tons of wastes are generated
for every ton of marketable gold, or “roughly
three tons of waste per gold wedding ring.”
Also, the waste that gold mining generates
contains toxic substances that can pollute air,
soil, and water. Generally, ore containing gold
is crushed and treated with a cyanide solution
that bonds to the gold and drains it from the
rock. Tailings—the processed rock slurries that
remain after the gold has been extracted—are
often contaminated with poisonous cyanide.
The cyanide-leaching treatment of ore can
also release other toxic heavy metals, such as
arsenic and mercury, contained in the rocks.
Any sulfide minerals (such as marcasite)
present in the rocks can also begin to react
continued on page 6
R E A L S AV I N G S
Trips That Can Change Your Life
L
what?
Consider making
your next trip
a volunteer
vacation.
why?
See the
sights, while
also learning
firsthand
about your
host community
by working
side-by-side
with its people.
Save money,
compared to
many standard
vacations.
wow!
Make meaningful
connections with
people around
the world while
supporting
causes you
care about.
2
ast year, Seattle native Suzanne
Tedesko and a group of fellow
tourists to Peru began a seven-day
trek along the Inca Trail with the travel
company Crooked Trails m . They were to
spend three nights along the way in three
separate villages—remote outposts that
had only recently encountered their first
outside visitors.
But instead of just spending the
night, giving their hosts money for
room and board, and leaving, Tedesko
and the Crooked Trails group offered a
service only they could provide to the
villagers as well. At the invitation of a Peruvian
nonprofit, which has a relationship with Crooked
Trails, they worked with local communities to help
them develop community-based tourism that aids
in the protection of “La Gran Ruta Inca.”
Crooked Trails guides small groups of travelers
on trips to Nepal, Vietnam, India, Thailand, and
Kenya, with a focus on fostering meaningful
connections between travelers and locals through
homestays and volunteer work projects. Some
trips simply involve helping host families with
day-to-day chores and farm work. Others involve
larger, hands-on work projects identified by the
locals themselves, from building toilets for a
Nepalese school to helping Peruvians map
ecologically sound hiking trails.
In addition to filling local needs, the service
element of the trips helps bring people together,
says Crooked Trails founder Chris Mackay:
“When people work side by side, they have a
common bond through which they can relate that
goes beyond language and culture. People laugh
together and see the fruits of their labor together.”
For example, residents of the villages to which
Tedesko’s group traveled with Crooked Trails were
eager to get outside advice on how to welcome
and host additional travelers who might come
their way. Taparaku villagers asked the Crooked
Trails group to help them devise a code of conduct
governing travelers and hosts.
Their guide Basilio, a local Quechua man,
arranged a workshop with the villagers to discuss
the pros and cons of opening their community
to travelers. To transcend the language barrier,
Basilio suggested an improvisational exercise
where the villagers would act out “bad tourists”
and the visitors would play “bad hosts.”
“We played disrespectful, scantily-dressed
intruders; they, inebriated locals who stumbled
around, ignoring us. Soon, we were all laughing
R E A L MONEY J A N U A R Y/ F E B R U A R Y 2 0 0 5
together and had broken the ice. Afterwards,
we all sat down to discuss,” relates Tedesko.
Together, the visitors and the villagers hammered
out a code of conduct that would help the
villagers and future travelers interact peacefully.
And they also formed lasting friendships.
Service-oriented vacations such as the trips
offered by Crooked Trails provide the opportunity
for travelers to leave a positive impact on the
places they visit. From assisting in conservation
efforts to teaching English to promoting peace, the
volunteer activities you can get involved in on your
travels vary widely. What they have in common is
that each provides the opportunity to serve others
on your vacation, learning firsthand about your
host community by working side by side with
its people.
What You Should Know
Volunteer vacations and expeditions are not for
everyone. You should be in reasonably good health
and fairly fit, as manual labor is often involved.
(Some are suitable for families with children and
senior citizens—check before booking.) Meals may
be simple, and your accommodations may be very
basic—ranging from modest hotel rooms to tents
to a sleeping bag on the floor of a local person’s
home. Opportunities for side trips to local
attractions are generally available but may
not be included in the trip price.
Keep in mind that most trips of this type
are not free—you will still have to pay for
transportation, room, and board. Be sure to
thoroughly investigate any service-oriented
vacation to ensure that the projects are in line
with your goals and values—and that the itinerary
and price meet your expectations.
Conserve the Environment
As many eco-travelers know, the best tourists
“take only photographs; leave only footprints”
when they’re visiting natural areas. With a
volunteer vacation focused on conservation efforts,
you can take that sentiment one step further.
The nonprofit EARTHWATCH INSTITUTE runs
expeditions on nearly every continent, sending
volunteers to directly assist scientists in their
conservation field research. Most projects are
10–14 days long, but there are also one-week,
three-week, and weekend opportunities available.
Expeditions range from measuring changes in
the coral reefs of the Bahamas, tracking the habits
of rare animals in Madagascar to ensure their
survival, and studying climate change patterns
m designates Co-op America Business Network Member
in Northern Australia’s rainforests. Costs range
from $700 to $4,000 per person, excluding travel
to the main rendezvous site, and 100 percent of
the money sponsors future research.
If you’re interested in going to Australia,
check out CONSERVATION VOLUNTEERS AUSTRALIA.
This organization takes travelers who volunteer
for a day or longer on any one of a variety of
conservation projects, including tree planting,
erosion and salinity control, seed collection,
construction and maintenance of walking tracks,
endangered flora and fauna surveys, weed control,
habitat restoration, and heritage protection.
Though travelers may choose which state or
territory they would like to work in, they are not
able to choose types of projects, as these vary by
season and conservation priority. The organization
tries to ensure a variety of projects for volunteers.
The price, including lodging and meals, starts at
$22 a night.
Participate in Peacebuilding
For those interested in strengthening people-topeople ties worldwide, some organizations offer
volunteer opportunities for peacebuilding.
One of the most notable is PEACETREES
VIETNAM, which was co-founded by a veteran of
the Vietnam War. PeaceTrees brings American
volunteers to work alongside the Vietnamese to
transform the legacy of the Vietnam War.
In Quang Tri Province alone—the area formerly
known as the De-Militarized Zone—a child is
injured or killed every week from unexploded
ordnance left after the war. PeaceTrees aims to
transform these dangerous lands by providing
Vietnamese experts with state-of-the-art training
and equipment to de-mine the land. Once an area
has been deemed safe, Vietnamese and American
PeaceTrees volunteers—many veterans of the
war—work together to plant tress, turning former
minefields into public parks.
The tree-planting is secondary to the human
connections that take place, says Vietnam veteran
and PeaceTrees managing director Chuck Meadows.
“Planting trees is the vehicle for learning more
about our Vietnamese friends, and we find that
working side-by-side and taking part in their
lives is a path to understanding each other in
a new light,” he says.
GLOBAL VOLUNTEERS sends over 2,000 volunteers
around the world to work on development projects
identified and managed by local people—ranging
from teaching English to repairing homes to
assisting in conservation efforts. One of their
projects, however, allows volunteers to directly
assist in peacebuilding efforts in Ireland.
Global Volunteers sends travelers to the
doorstep of Dublin’s nonprofit Glencree Centre for
Reconciliation, which unites citizens from Northern
Ireland and the Republic of Ireland for intensive
workshops to advance peace. There, volunteers
assist in Glencree’s important work by taking care
of critical upkeep tasks—beautifying the grounds,
painting windows and walls, setting up and
clearing meeting rooms, and helping the staff
with day-to-day tasks.
The service program fee for one-, two-, or
three-week Global Volunteers programs ranges
from $1,370 to $2,750, excluding airfare.
US SERVAS m takes a novel approach that
provides volunteer opportunities for those staying
at home. US Servas aims to foster a more peaceful
world by promoting appreciation of cultural
differences through homestays. Servas now
encompasses over 14,000 homes and institutions
in more than 130 countries on six continents.
How it works is this: Volunteers sign up on
the Servas host list, offering to open their homes
to Servas travelers—typically for two days and
nights. You can also volunteer as a “day host” if
you can’t offer overnight accommodation. During
these visits, travelers are encouraged to participate
in the life and work of their hosts and the
communities in which they are guests. You can
also sign up to be a Servas traveler yourself.
Resources
• Conservation
•
•
•
Find Your Bliss
Several organizations offer a host of other volunteer
opportunities for vacationers. SERVICE CIVIL
INTERNATIONAL (SCI) sends volunteers to two- to
four-week work camps to work on projects for
grassroots groups around the globe. And GLOBE
AWARE develops locally identified, short-term
“mini-Peace Corps” projects worldwide aimed at
promoting cultural awareness and environmental
sustainability. For more volunteer vacation
opportunities, visit www.charityfinder.org
/charity/vacation.htm or see the book Volunteer
Vacations (Chicago Review Press, 2003) by Bill
McMillon, Doug Cutchins, and Anne Geissinger.
(If you’re interested in educational eco-travel
without the service element—such as the
worldwide “Reality Tours” offered by Global
Exchange m —check out the businesses in the
“Travel” categories of the National Green Pages™.)
Just a few days of your time really does make
a difference. Helen Honeyman told Budget Traveler
that she set up and ran Ireland’s Glebe House, a
retreat for children away from the conflict and
violence of Belfast, for 23 years (and still going)
largely with the help of long-term and vacationing
volunteers from SCI. “Even two weeks’ experience
can have a profound effect,” she says.
Adds Chris Mackay, “Even if it’s a simple
homestay where you’re just helping with household chores, it’s a wonderful experience for everyone, a chance for people to open up and share in a
world that is more and more closed and afraid. I
think we all need more feel-good experiences in
this world.”
—Tracy Fernandez Rysavy
•
•
•
•
•
•
•
Volunteers
Australia—
+61/3-5333-1483,
www.conserv
ationvolunteers
.com.au.
Co-op America’s
National Green
Pages—
800/58-GREEN,
www.green
pages.org.
Crooked Trails m
—206/372-4405,
www.crooked
trails.com.
Earthwatch
Institute—
800/776-0188,
www.earth
watch.org.
Global
Exchange m —
415/255-7296,
www.global
exchange.org.
Global
Volunteers—
800/487-1074,
www.global
volunteers.org.
Globe Aware—
214/823-0083,
www.globe
aware.org.
PeaceTrees
Vietnam—
206/842-7986,
www.peacetrees
vietnam.org.
Service Civil
International—
206/350-6585,
www.sci-ivs.org.
US Servas m —
212/267-0252,
www.usservas.org.
Volunteer
Vacations—by
Bill McMillon,
Doug Cutchins,
and Anne
Geissinger
(Chicago Review
Press, 2003).
R E A L M O N E Y J A N U A R Y/ F E B R U A R Y 2 0 0 5
3
R E A L I N V E ST I N G
Get What You Need Without Money
I
what?
Try getting
the things you
need through
bartering.
why?
Make
meaningful
connections
with people in
your community
and beyond
while getting
the things you
need in your
daily life.
wow!
Help create a
vibrant local
economy.
Preserve the
environment by
fostering a
culture of reuse
and keeping
unwanted items
out of landfills.
4
In 2001, with inflation soaring
and the value of the Argentine
peso dropping, Buenos Aires
shoe salesman Pedro Perez
found himself shut out of the
market economy.
Shoe sales had plummeted as
prices soared, and Perez found
that his salary could no longer
cover the needs of his family.
With the country’s monetary
system failing him, Perez joined
with many other Argentinians in providing for
his family’s needs without the use of money by
participating in a resurrected barter system.
At the height of the crisis, the New York Times
reported that about a million Argentinians had
turned to an alternative, moneyless economy to
solve at least some of their financial problems,
including Perez, who would carry sacks of shoes
to the treuques (exchange clubs) once a week to
barter for fresh fruits and vegetables.
“It’s a different kind of economy,” observed
Peruvian economist Humberto Ortiz at the time.
“This ‘grassroots’ economy is one not oriented
toward profit, but oriented toward sharing
well-being.”
The barter system sustained much of the
Argentinian lower and middle classes through the
money crisis, but the benefits of moneyless trade
can apply anywhere. Moneyless transactions
provide mutual enrichment while preserving cash
for other needs, and exchanging unwanted goods
delays their obsolescence and preserves resources.
Whether you’re looking to give your old
belongings new life by recycling them through a
barter exchange, or to emphasize the human
connections in your economic transactions by
intentionally seeking cooperative swaps, the
‘grassroots economy’ of bartering can be a way for
you, like Perez, to advance economic well-being.
Web-based Bartering
Long before the development of the market
economy, people were trading their livestock,
textiles, foodstuffs, and more. Long before money
was ever printed in the United States, arriving
settlers were trading amongst themselves and with
the indigenous people already living on the land.
Bartering in the 21st century is essentially no
different from the bartering of ancient civilizations
or early American settlers, though increasingly, the
forum of choice for setting up a successful trade is
an entirely modern one—the public square of
R E A L M O N E Y J A N U A R Y/ F E B R U A R Y 2 0 0 5
cyberspace. Internet trading options help people
make connections with one another.
Online, you can find bartering sites designed to
cater to specific demographics (like busy mothers
at www.mommysavers.com), specific geographic
areas (like the cities served by Craig’s List at
www.craigslist.org), or specific types of barters
(like the services trading Web site www.barter
yourservices.com).
Thom Rogers, an art teacher in San Marcos,
Texas, says his experience with bartering through
online sites has been very productive. Recently,
when Rogers decided to add computer animation
instruction to his middle school art classes, he
discovered that he didn’t have the budget to afford
the computer equipment and software necessary.
He did, however, have an old laptop that he
wasn’t using, so he posted the laptop to Craig’s
List as a barter. Another Craig’s List user had the
“solid workhorse” computer equipment Rogers
sought for his classroom and was looking to
exchange for a lighter, more portable computer.
“It was a solid trade for both of us,” says
Rogers. “My exchange partner got exactly what he
was looking for, and now my seventh and eighth
graders are creating their own claymation movies
with the new equipment I got.” Rogers also points
out that the trade kept two unused computers
from being landfilled.
Business Exchanges
On a larger scale, companies, nonprofits, schools,
and community groups are also developing creative
ways to operate without always using money.
Barter among companies means access to new
markets and new customers for more than 300,000
US businesses, according to the International
Reciprocal Trade Association (IRTA). In 2001 (the
most recent year for which statistics are available),
barter resulted in more than $7.5 billion worth of
exchanged goods, as businesses find new outlets for
their excess inventory (eliminating unsustainable
disposal of surpluses) and are able to hold onto
their cash reserves for other needed expenses.
Barter relationships between businesses,
nonprofits, and other organizations can be set
up individually on a case by case basis, but also,
as with personal barter, you can find Internet
resources designed to help you make the connections you need. For example, Kansas City-based
Surplus Exchange m (www.surplusexchange.org)
is a barter system that offers surplus office equipment and supplies to organizations that need it.
Surplus Exchange executive director Rick Goring
m designates Co-op America Business Network Member
says the exchange includes about 1,400 members
and saves them around $400,000 a year.
Other sites for business bartering offer more
than just office equipment. For example, barter
exchange groups like Alliance Barter (www.
alliancebarter.com), Barter Business Unlimited
(www.bbu.com), and Barter Advantage (www.
barteradvantage.com) help businesses trade for
everything from airline tickets to printing services.
Additionally, in some communities with local
exchange systems in place, businesses can not
only interact with one another without money,
but can offer their customers the same choice. For
example, Philadelphia’s White Dog Café m , does
business using the local “Equal Dollars” program, a
Philadelphia-based system designed to encourage
local trading relationships and to bring people
without access to traditional capital into the
economy. The White Dog Café accepts partial
payment for meals in Equal Dollars, and seeks
local vendors who trade in Equal Dollars for the
café’s business-related transactions.
It works like this: Juanita, who runs a babysitting business, becomes an Equal Dollars member.
She babysits for Mary, who cannot pay Juanita
with money, but pays her 20 Equal Dollars from
her Equal Dollars account. Now Juanita’s Equal
Dollars account is credited with 20 Equal Dollars,
which she spends on dinner at the café. White
Dog Café’s account is then credited with 20 Equal
Dollars, which it uses to hire Mary fix a broken
appliance at the restaurant, bringing Mary’s
account back to zero—and saving US dollars for
everyone involved. The result is increased business
for local suppliers and workers in a system that
encourages people to save their US dollars by
bartering. (To find programs like “Equal Dollars”
near you, visit www.smallisbeautiful.org/frame
set_local_currencies.html.)
Time Dollars
In addition to encompassing the strictly practical
applications of an exchange system, the Time
Dollar program also has a social change mission
at its core. As first conceived by Edgar Cahn—
author of Our Brother’s Keeper and 1998 winner of Coop America’s Building Economic Alternatives
Award—the Time Dollars system is a way to get
what you need without money that also maximizes
connections between people and community
involvement. Cahn developed the idea while
“feeling useless” during recuperation from a heart
attack. Determined to continue making a difference
to others, and to emphasize that everyone has
something to share, he founded Time Dollar USA m .
In the Time Dollar system, members trade hours
of labor. One hour equals one service credit in the
system no matter what the service (i.e., housepainting, computer services, accounting), a structure
that values everyone’s contributions equally.
The IRS has ruled that the Time Dollars program
is tax-exempt. However, in general, income
generated by bartering is not tax-exempt. The IRS
says: “Bartering occurs when you exchange goods
or services without exchanging money .… The fair
market value of goods and services exchanged
must be included in the income of both parties.”
For more detailed information, visit www.irs.gov.
Since its beginnings in the 1990s, the Time
Dollar system has spread out into local communities
across the US, including a large New England
Time Dollar system headquartered in Maine.
“The two core values that Time Dollars bring
to every exchange are the principles of equality
and reciprocity,” says Auta Main, director of
New England Time Dollars. “[In the mainstream
economy], we pay someone $10 an hour to take
care of our kids, or $100 an hour to take care of
our computer. Isn’t that crazy? With Time Dollars
it’s different. Time Dollars remind us that we’re all
uniquely and equally valuable human beings with
something to contribute.”
Main says she’s seen complete weddings paid
for by Time Dollars, babies delivered by midwives
trading with Time Dollars, and even knows of a
man who credits an hour of Time Dollar health
care with saving his life. “He didn’t have health
insurance, but the True North Health Center here
in Maine takes Time Dollars,” says Main. “He went
in for a check-up, and his physician found a lump
that needed immediate attention or it could have
turned cancerous.”
Main notes that the Time Dollars system is not
quite as simple as person-to-person bartering, and
requires the dedication of a group of individuals
with some start-up capital to launch a database for
keeping the accounting, and to actively promote
the use of Time Dollars by the community.
However, she also points out that a successful
Time Dollars program can become virtually
self-managing by its members after about the
first three years, because “the members like it so
much, and they get so vested in the process.”
“We find that once members have swapped
four or five services, they really get into the
groove. The average member swaps about nine
hours their first year, and 30 hours their fifth year,”
says Main. “People begin to understand that their
economic transactions are about more than money.
They’re building community, alleviating isolation,
building trust, and connecting with neighbors in a
world that can feel like it’s becoming more and
more disconnected.”
To learn more about setting up a Time Dollars
exchange in your area, call 207/874-9868 or e-mail
[email protected] to request a start-up
packet. To see if there’s a Time Dollars system near
you, visit: www.timedollar.org/r_td_directory.htm.
—Andrew Korfhage
Choose
to Reuse
Reuse your old
newspapers this
winter by making
rolled newspaper
“logs” for your
fireplace. Roll
newspaper sheets
around a broomstick
until the log is the
desired size. Soak
thoroughly in
water, and let dry
overnight. Remove
the broomstick, and
use like an ordinary
wood log. Most
newspapers today
are printed with
soy-based inks, so it
is safe to burn the
black and white
pages. (Ask your
newspaper about
their black inks to
doublecheck.) Do
not use the colored
or glossy pages, as
they may contain
toxic inks.
—Newspaper log
directions courtesy
of EarthShare,
www.earthshare.org
When planning an
event where you
need name tags,
try this tip to avoid
single-use tags:
Write guests’ names
on wooden clothespins with a marker.
Clothespins are
ideal because they
go easy on all
fabrics, and you’ll
find many guests
enjoy taking them
home to re-use.
—Roberta Beach
Jacobson, Karpathos
Island, Greece
HAVE CHOOSE TO
REUSE IDEAS?
Send them to our
editors, see your name
in Real Money, and get
a free gift subscription
for a friend. See p. 7
for contact information.
R E A L M O N E Y J A N U A R Y/ F E B R U A R Y 2 0 0 5
5
The Tarnished Side of Gold
continued from page 1
what?
Be mindful
about the gold
you purchase.
why?
A concentrated
consumer and
investor effort
will help keep
toxins from gold
mining out of
our air, water,
and soil, as
well as protect
workers in and
communities
near gold mining
operations.
wow!
Use your
consumer and
investor power
to pressure
these companies
to reform their
social and
environmental
practices.
with water, air, and bacteria to create acidic water
in a process known as acid mine drainage.
In some countries, it is still legal to dump
tailings directly into rivers or oceans, and some
mining operations have been found doing so even
in countries where it’s illegal. Instead of dumping
tailings, many mining companies contain them in
impoundments; however, leaks, spills, or complete
failures of these impoundments can release
cyanide, heavy metals, and sulfuric acid, resulting
in fish kills, soil and water pollution, and damage
to human health. In 2000, when a gold-mining
tailings dam broke in Romania, 100,000 cubic
meters of waste water containg cyanide and heavy
metal poured into the Lapus River and eventually
made its way into the Danube River in Hungary,
where the government reported that 165 tons of
fish died. In mining operations where tailings are
allowed to dry in the open air, they can generate
dusts containing metals and suspected carcinogens
such as arsenic, cadmium, and chromium.
Before cyanide leaching became a popular
technique in gold mining, miners used mercury
to bind to gold and separate it from the ore.
Today, many artisanal miners in places such as
Brazil’s Amazon basin and Papua New Guinea
still use mercury in small-scale mining operations.
Exposure to high levels of mercury can permanently
damage the brain and kidneys, and mercury
persists for years in the environment.
After gold is extracted from rock, it is further
refined through smelting, a process that subjects the
gold to intense heat. Sampat reports that the smelting
of all metals worldwide emits 19 million tons of
sulfur dioxide, which causes acid rain, each year.
Gold’s Human Toll
Gold mining’s environmental impacts can take a
heavy toll on the health of those who work in or
live near mining operations.
According to the International Labour
Organization (ILO), “the toll of death, injury, and
disease among the world’s mineworkers means
that, in most countries, mining remains the most
hazardous occupation when the number of people
exposed to risk is taken into account.” Although
data on injuries is limited, the ILO reports that
the number of workers facing premature disability
or death from occupational diseases such as
pneumoconiosis (a chronic respiratory disease
caused by repeated inhalation of dust) is significant.
Communities that will be affected often receive
too little consideration when a government grants
mining leases. National governments are often so
6
R E A L M O N E Y J A N U A R Y/ F E B R U A R Y 2 0 0 5
eager to attract mining companies that they
subsidize mining operations and make laws that
the companies will find favorable. Sampat reports
that since 1990, more than 100 countries, most of
them in the developing world, have rewritten laws
in order to attract foreign investment in mining;
changes include allowing 100-percent foreign
ownership of mines and letting companies repatriate all profits. The mining jobs won’t necessarily
even go to local residents, since mining companies
require skilled labor and may bring trained
workers from elsewhere to work in a new mine.
In their recent report, “Dirty Metals: Mining,
Communities, and the Environment,” nonprofits
Earthworks and Oxfam America note that most
large-scale mining projects operate for between
10 and 40 years, and that mine workers laid off
after mine closures are likely to remain unemployed
for long periods of time. So, even if a mining
community did benefit economically during a
mine’s operation, its economic upturn is likely to
be short-lived. Mining activities are also not a safe
bet for national economic growth. Sampat reports
that countries whose economies are dependent
on minerals mining grow more slowly, or even
experience negative economic growth.
Local residents may also lose their homes
altogether to a mining operation. Earthworks and
Oxfam America explain that many communities in
the developing world, as well as some indigenous
groups in the industrialized world, lack legal titles
to the lands where they have lived for generations.
(As much as 50 percent of the gold produced
between 1995 and 2015 will come from indigenous
lands, reports Sampat.) When the government
grants leases to lands that have traditionally
belonged to these communities, residents face
eviction, often with little or no compensation.
“Especially in parts of Africa and the Pacific
region, large-scale mining tends to become
‘militarized,’” the “Dirty Metals” report states. A
country’s police or armed forces may forcibly evict
residents and perpetrate other human rights abuses to quell community opposition to mining operations. In West Papua, Indonesia, human rights
investigators have documented rape, torture,
extrajudicial killings, and arbitrary detention committed by the Indonesian military against indigenous communities near the Grasberg gold and
copper mine operated by Freeport McMoRan.
Altering an Industry
Earthworks and Oxfam America have launched a
“No Dirty Gold” campaign to address some of the
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detrimental effects of gold mining. Keith Slack,
Oxfam America’s co-coordinator of the campaign,
explains that Earthworks and Oxfam America
decided to focus their campaign on gold because
“80 percent of the gold produced today goes to
jewelry, so you can make a direct connection
between the end product and the conditions
under which it was produced.”
“Today, options don’t exist for consumers
who want to buy gold that was mined under
ethical circumstances,” continues Slack. “The
industry won’t take the steps to make it available
until they feel pressure from jewelry companies
and consumers.”
The campaign is not calling for a boycott;
rather, they’re asking consumers to tell retailers
that they’d like to have a responsible alternative
available for purchase.
Since most mining companies don’t deal
directly with consumers, the best way for us to
communicate with them is through jewelry
retailers. Many of these retailers are disturbed by
the prospect of gold’s reputation being tarnished
and will urge the mining companies to adopt more
responsible practices. Since the No Dirty Gold
campaign launched, the Jewelers of America, a
national association of jewelry retailers, has stated
its support for the goals of the campaign, and
jewelry giant Tiffany has used a full-page ad in
the Washington Post to call for mining reform.
Even the World Bank Group, which finances
numerous mining projects around the world, has
recognized the need to implement reforms in its
lending for extractive industries (which include oil
and gas as well as mineral mining). A report comissioned by the World Bank recommends holding
extractive projects to certain standards—many of
which are simiar to the standards the No Dirty
Gold campaign is calling for—that include:
• Obtaining free prior and informed consent
from communities directly affected by the projects;
• Developing guidelines for waste disposal and
management, and the use of toxic substances;
• Providing sufficient planning for project
closure, including the creation of a fund or
mechanism to pay for social and environmental
costs; and
• Designing and implementing projects in a
manner consistent with applicable international
human rights standards.
It’s becoming clear that mining companies that
ignore the concerns of communities, investors, or
the general public can face consequences. When
Denver-based Newmont Mining Corporation
attempted to expand a gold mine in Cajamarca,
Peru, two weeks of violent protests ensued, and
the company finally asked the government to
revoke its permit to expand mining operations. At
the same time, Newmont was in the news for its
disposal of gold-mining waste in Indonesia’s Buyat
Bay. Newmont says that it’s following all
applicable laws in disposing of this waste, and
that the levels of pollutants in the bay are within
legal limits, but residents claim that the gold
mine’s waste is responsible for the skin rashes,
tumors, and other illnesses that have become
common in the area since the mine opened.
“The mining industry is aware that it has an
image problem and that it has to do something,”
says Slack. “But they haven’t yet made the real
changes that are needed to fix the problem.”
What You Can Do
Here are steps you can take to reduce gold mining’s
impact on communities and the environment, and
to help reform mining practices worldwide:
REDUCE, REUSE, RECYCLE: Before buying gold
jewelry, ask yourself if you really need another
necklace or tie clip. If you are seeking gold accessories, see if friends or family members have items
that they’re ready to pass on, or check secondhand
shops and eBay. If you already have a gold piece
that doesn’t fit or isn’t quite to your tastes, ask a
local jeweler to alter it for you. Some may even be
able to melt down your old pieces and recast them
as something entirely new. Or, look for new jewelry
made out recycled gold—greenKarat m is one
company that offers commitment bands and other
jewelry made from recycled 14K and 18K gold.
SUPPORT THE NO DIRTY GOLD CAMPAIGN: Sign
the campaign pledge expressing your support for
the campaign’s goals to end destructive mining. If
you’re shopping for gold jewelry, let retailers know
that you want to see ethically mined gold become
available (the campaign offers materials you can
bring to retailers to explain what needs to change,
or you can take along a copy of this article).
Students can distribute campaign materials at
venues where class rings are sold.
CHECK YOUR INVESTMENTS: If any of your
money is invested in gold mining companies, you
may be able to use your shareholder voice to call
on the company to change. In December of 2003,
Boston Common Asset Management m filed a
shareholder resolution with Newmont Mining
Corporation, the world’s largest gold-mining firm,
calling on the company to prepare a report on the
risk to the company’s operations, profitability,
and reputation from its social and environmental
liabilities. If you invest in a mutual fund, you can
ask the fund’s investor relations department if
they have criteria that mining companies must
meet in order to be included in the portfolio, or
if they will file shareholder resolutions at any
mining companies in which the fund holds stock.
No matter which of these steps you decide
to take, you can help ensure a safer, healthier,
and more prosperous future to gold-mining
communities around the world.
—Liz Borkowski
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Resources
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800/330-4605,
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karat.com.
• International
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212/697-0150,
www.ilo.org.
• No Dirty Gold
Campaign—
617/728-2409,
www.nodirty
gold.org.
• WorldWatch
Institute—
202/452-1999,
www.world
watch.org.
R E A L M O N E Y J A N U A R Y/ F E B R U A R Y 2 0 0 5
7
Green Mountain Coffee Roasters (GMCR)
Investing Resolutions for 2005
STOCK PICKER: THOMAS L . MOSER
REAL
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Professional investors discuss
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both a financial and a socially
responsible perspective.
PLEASE REMEMBER:
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and staff of Real Money
or Co-op America. Past
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of future results. Investing in
individual stocks puts your
principal at risk. Before
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8
Green Mountain Coffee Roasters is a leader in the
specialty coffee industry and offers over 100 coffee
selections, including estate, certified organic, and
fair trade coffees. It recently opened a 90,000 sq.
ft. roasting and distribution center to meet the
growing demand from its existing wholesale
customers and expected new business from
Brueggers, Ben & Jerry’s, and Market Basket.
Green Mountain is an active participant in
Business for Social Responsibility. It donates five
percent of its pre-tax profits to socially responsible
initiatives. Its employees are encouraged to take
paid time off to help their communities—this
year, they will have donated close to 2,000 hours
at schools, rescue squads, and numerous
community organizations.
Green Mountain is a buy under $24. The
company is expected to continue delivering doubledigit sales growth with the recent announcements
of new customers. The company has a PE ratio of
22 based on trailing earnings. While there are
reasons to believe that the company will continue
to deliver financially, there are risks. These include
loss of customers such as ExxonMobil, which
make up 50 percent of convenience store sales, and
volatility in the commodity price of green tea. The
company has initiated new internal efficiency
measures to reduce costs and is diversifying its
customer base.
Earnings per share: FY 2003: $0.87 • 2004: $1.06 •
2005 (est.): $1.25
Thomas L. Moser is a specialist in High Impact stock client
portfolios. He is a member and registered representative of First
Affirmative Financial, LLC (FAFN) with his office located just
outside Tucson, Arizona. He is also a member of the PAM network
of advisors and offers securities through Financial West Group
(FWG), member NASD & SIPC. The FWG supervisory office is
located at 250 Redington, Troy, PA, 16947, 570/297.0629. FAFN is
not a subsiduary or affiliate of FWG. The information is derived
from sources believed to be reliable. However, FWG takes no
responsibility for its completeness or accuracy. Contact:
[email protected] or 800/270-6151.
EDITOR
ASSOCIATE EDITORS
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R E A L M O N E Y J A N U A R Y/ F E B R U A R Y 2 0 0 5
Tracy Fernandez Rysavy
Liz Borkowski, Andrew Korfhage
Mary Lynch
Jennifer Thuillier
Jem Sullivan
Denise Hamler
Dennis Greenia
Denise Hamler, Dawn Zurell
Erin Gorman, Amanda Romero
Paula Wertheim
Andrew Korfhage
Alisa Gravitz
At the turn of the new year, here is a quick list of
some of Co-op America’s online resources to help
you with your 2005 socially responsible investing
resolutions.
1. INVEST IN COMMUNITIES: Did you know that
the UN has declared 2005 the International Year
of Microcredit? Each year, socially responsible
investors help communities in need lift themselves
economically through microcredit lending, a
powerful type of community investing that serves
people here and overseas. In the wake of the devastating tsunami, microcredit will play a key role
in helping people rebuild their small businesses.
Resolve to make 2005 the year you switch at least
one percent of your investment dollars into community investing. In 2004, Co-op America’s “1%
in Community” campaign steered a record $500
million in new investments into community
investing. Visit our www.communityinvest.org to
learn how to get started, or call 800-58-GREEN
for a free copy of our Investing in Communities guide.
2. INVEST RESPONSIBLY: Turn to the
Co-op America Updates insert included with
this issue of Real Money to find our latest socially
responsible mutual fund performance chart.
Published twice a year in Real Money, this chart
is your guide to the performance of screened
mutual funds—funds that screen out socially
or environmentally irresponsible companies, or
screen in companies that support responsible
business practices. Find profiles of the funds
listed on the chart at www.socialinvest.org, where
the chart is updated six times a year.
3. CATCH UP ON REAL MONEY: Go to Co-op
America’s www.realmoney.org to revisit articles
from 2004. Find articles on investment tips for
unmarried partners, how to educate teenagers
about investing responsibly, and what the recent
mutual fund scandals mean to you—plus Real
Money’s green living and purchasing resources
and tips.
Real Money is published by Co-op America • 1612 K Street NW, Suite 600,
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