MINING FOR JUSTICE
1
MINING FOR JUSTICE:
The struggle of Honduran civil society for responsible mining
A report on an MPs’ Fact-Finding Mission on Mining in Honduras
Canadian Catholic Organization for Development and Peace
September 9-13, 2007
MINING FOR JUSTICE
‘At least with the Spanish
invaders, it was their different
geo-political and anthropological
vision that led them to
assume our colonial possessions
were theirs by right; in this case it’s
our own Government giving away
our possessions for free.’
Cardinal Oscar Andres Rodriguez
May, 2005
2
MINING FOR JUSTICE
3
List of Acronyms
AMHON
Association of Municipalities of Honduras
ANAMIMH
National Association of Metallic Mining Companies of Honduras
ASONOG
Association of NGOs, a coalition that brings together environmental organizations
from Western Honduras
CESCCO
Centre for the Control of Pollutants,
a Honduran state body that is regulated by SERNA (see below)
CAFOD
Catholic Agency for Overseas Development,
Development and Peace’s UK sister organization
CSO
Civil society organization
CSR
Corporate Social Responsibility
DECA
Directorate of Environmental Evaluation and Monitoring,
a Honduran state body regulated by SERNA
DEFOMIN
Direccion de Fomento de la Mineria –
Honduran state body responsible for the regulation and promotion of mining
EITI
Extractives Industries Transparency Initiative,
launched in 2002 by UK Prime Minister, Tony Blair
FPIC
Free Prior and Informed Consent
IFC
International Finance Corporation –
World Bank body which offers loans for investment projects
SCFAIT
Standing Committee on Foreign Affairs and International Trade,
Canadian Parliamentary Committee
SERNA
Secretaria de Recursos Naturales y Ambiente –
Honduran Ministry of Natural Resources and Environment
MINING FOR JUSTICE
4
Executive Summary
“If a country’s current laws and monitoring mechanisms
are inadequate to properly regulate mining activities,
what does this say about a company that chooses
to locate itself in such an environment?”
Stephen Pound (UK, Labour, Ealing North)
On September 9-13, 2007, three parliamentarians from Canada and the United Kingdom
traveled to Honduras on an MPs’ Fact-Finding Mission on Mining issues, Alexa McDonough,
(Canada, NDP, Halifax), Spokesperson for the NDP on Foreign Affairs and International Development; Keith Hill, (UK, Labour, Streatham), parliamentary private secretary to former
Prime Minister Tony Blair; and Stephen Pound (UK, Labour, Ealing North).
Development and Peace and the Catholic Agency for Overseas Development (CAFOD) sponsored the mission following a request from their partner, Caritas Tegucigalpa, who wanted
help to advocate for a just and responsible mining law in Honduras. Caritas has worked intensively for mining legislation that puts the interests of the country before those of foreign
mining companies. In addition, it has been working closely with the communities affected by
the environmental and human impact of San Martin, an open pit mine run by Entre Mares, a
subsidiary of Goldcorp—a Canadian-based company.
Development and Peace also sought to follow up on the recommendations of Canada’s National Roundtables on Corporate Social Responsibility, a multi-stakeholder process in which
the mining industry and civil society worked together to find consensus recommendations to
improve the CSR performance of Canadian companies in their overseas operations. By examining the issue of mining in Honduras, the mission sought to show how a weak regulatory
framework allows foreign companies to take advantage, and behave in ways unacceptable in
their home countries. This, in turn, would illustrate why Canada needs to make mining, oil
and gas companies accountable for their overseas operations.
CAFOD sought to follow up on its Unearth Justice campaign, whereby campaigners in the UK
are calling on the jewelry industry to purchase only from suppliers who can guarantee responsible production practices. With the launch by former Prime Minister Tony Blair in 2002
of the Extractive Industries Transparency Initiative (EITI) the British government has also
been at the forefront of efforts to ensure that mining,oil and gas corporations act transparently regarding payments and taxes paid to host governments, and this is one of the issues
at stake in Honduras.
The delegation met with a cross section of Honduran government, industry and civil society
representatives. It heard about forced relocation of families, legal improprieties by Entre
Mares, poor governance, and claims of disease caused by environmental pollution. In particular, the delegation learned the following:
MINING FOR JUSTICE
•
The current 1998 mining law puts first the interests of foreign mining companies, before
those of the Honduran state. The weakness of the law was illustrated by the following
situations encountered by the delegation:
∗
Local mayors complained that they found out only by accident that the government had
granted mining concessions in their municipalities;
∗
The state prosecutor for the environment told the delegation that weak environmental
and mining legislation undermines his ability to do his job;
∗
Bishop Juan Jose Pineda spoke of the rampant corruption aided and abetted by unscrupulous foreign companies;
∗
Entre Mares, a Goldcorp subsidiary, refused to pay a fine for environmental pollution
around the San Martin mine since it did not agree with findings of the Ministry’s environmental tests;
•
A broad cross section of civil society organizations, supported by certain key politicians,
have worked tirelessly to reform the law and bring it in line with the country’s interests,
but are repeatedly confronted by the powerful mining industry lobby which seeks to
maintain the status quo
•
Mining operations have seriously depleted the water supply of the communities in the
vicinity of the San Martin mine; and
∗
Eight years after relocating to accommodate the San Martin mine, some families still lack
title deeds to their lands and fear future eviction.
∗
The Siria Valley communities living in the vicinity of the mine believe that pollution has
affected their health. The government has begun rigorous biological testing, and samples were sent to an independent laboratory in Colombia for analysis. The results have
still not been made public.
On the eve of the delegation’s departure from Honduras, members received some good
news. Roberto Micheletti, President of the Congress, promised that the House would debate
a bill to reform the 1998 Mining Law—the product of lengthy and extensive consultations by
civil society—by the end of the parliamentary session. The MPs were convinced of the need
to strengthen regulation of mining by the Honduran government, yet at the same time, were
conscious of the fact that it will take time to implement real change. They therefore found
that as long as Canadian mining companies operate in countries of weak regulation, Canada
has a responsibility and a role to play. Consequently, the case for accountability mechanisms
for Canadian mining companies in their overseas operations is clear and unequivocal.
5
MINING FOR JUSTICE
6
Recommendations
To the Government of Canada:
1. Implement immediately and fully the recommendations of the National Roundtables on
Corporate Social Responsibility (CSR), as published on March 29, 2007 by the Advisory
Group, including the following:
∗
∗
∗
Establish a Canadian Standard on CSR, as well as an independent ombudsperson to verify
compliance. The ombudsperson would investigate allegations of failure by companies to
respect the Canadian standard and would make recommendations regarding follow up;
Ensure federally administered pension funds report on social and ethical criteria regarding
investments; and
Offer technical assistance to Honduras to enable the government to implement provisions
of the Mining Law (as and when reforms are approved, and an appropriate legal framework for mining is in place). The Honduran government must lead such a process.
2. Evaluate Canadian government policies on trade, environment and governance on the
ground in Honduras, ensuring coherence. In particular, the Government should ensure
trade practices do not undermine work by the Department of Foreign Affairs and International Trade, and the Canadian International Development Agency (CIDA) to support good
governance and sound environmental policies in Honduras.
3. Canadian diplomatic representatives responsible for Honduras should urge Entre Mares —
the operators of the San Martin open pit mine— to:
∗
∗
Pay the fine imposed by the Honduran Natural Resources Secretariat (SERNA) and appeal
afterwards, if the company believes there are sufficient grounds; and
Ensure the responsible closure of the mine, respecting the demands of the community
(see recommendations to Entre Mares).
To the Honduran Government :
1. Move swiftly to ensure the full debate in the Congress of the bill to reform the 1998 Mining
Law, and thus ensure a legal framework that incorporates the interests of Honduran society as a whole, including the communities affected by mining. Once new legislation is in
place, the Honduran government should implement its provisions, requesting bilateral and
multilateral donors to provide training, as well as technical and financial support, as
necessary.
2. Establish a working group, with the participation of civil society, to ensure that current
concessions operate with the optimum operating standards, taking into account the spirit
of the reforms bill.
MINING FOR JUSTICE
3. Pressure Entre Mares to ensure responsible closure of the San Martin mine, in line with the
community’s demands. In particular, the government could offer its cooperation on a new
Environmental Impact Assessment, which would assess damage after seven years of mining operations, and suggest issues to follow up on.
4. Comply with international obligations regarding human rights, including the right to effective justice, in keeping with recommendations of the Latin American Tribunal on Water.
The Government of Honduras must ensure its citizens effective access to legal remedy.
5. Join the Extractive Industries Transparency Initiative (EITI), which obliges companies to
reveal all payments to government. The government, in turn, should publish how it spends
mining revenues.
To Entre Mares and Goldcorp:
1. Take swift action to show respect for the institutions of the Government of Honduras by
paying the fine imposed by SERNA. Appeal after paying the fine, if the company believes
there are sufficient grounds. Stop attempts to discredit and undermine the process undertaken by the Honduran government to test for the effect of pollutants on the health of the
population.
2. Bearing in mind its pledge that the closure of the San Martin mine by 2010 will provide a
model for the rest of Latin America, the company must promptly move to meet the demands of the communities affected by the mine, including the following:
•
•
•
•
•
•
Deliver promptly title deeds for all those in Palo Ralo who were relocated and still have not
received legal documents;
Finance and cooperate with a new and independent Environmental Impact Assessment with
the participation of communities affected to measure the effects of seven years of mining
operations;
Set aside a fund for possible compensation demands. Undertake to compensate those
deemed to be affected, even if full environmental and/or health impacts are only determined after the closure of the mine;
Clean up all water sources before it leaves;
Reforest land with native species of trees and shrubs in place before the company arrived;
and
Refrain from further discharge of residual waters into water courses, given that SERNA has
already assessed previous discharges have unacceptably high levels of pollutants.
To John Ruggie, UN Special Representative on Human Rights,
Transnational Corporations (TNCs) and Other Business Enterprises:
1. In the light of the case of Honduras as an example of how many developing countries’
weak regulatory frameworks impact negatively on human rights, we urge John Ruggie to
recommend to the UN Secretary General that home countries of TNCs institute mandatory
accountability mechanisms to ensure corporations behave responsibly in their overseas
operations.
7
MINING FOR JUSTICE
8
Introduction
Gold? Yellow, glittering, precious gold?
...
This yellow slave
Will knit and break religions, bless th’ accursed,
Make the hoar leprosy adored, place thieves,
And give them title, knee and approbation
With senators on the bench.
William Shakespeare in Timon of Athens
Early September, 2007
As Hurricane Felix swept its way westwards across the Caribbean, Honduras braced itself for
a severe beating. Nine years after Hurricane Mitch devastated the country, Hondurans know
only too well the potential impact of a Category 5 Hurricane. In Montreal, Development and
Peace put on hold preparations for a fact-finding trip on mining issues to Honduras, waiting
for hourly news reports from its partner, Caritas Tegucigalpa.
News came three days before the planned departure: Felix had weakened to a tropical
storm, causing severe damage in some communities on the North Coast of Honduras, and
flooding downtown Tegucigalpa. In the municipal markets, waist-high floods had swept a
pregnant market vendor to her death.
Two hours outside of Tegucigalpa in the central Siria Valley, the site of the San Martin open
pit gold mine was unaffected by flooding. Before the mine started operations, the area was
prone to floods every winter as rivers burst their banks and roads often became impassable.
Nine years after the launch of mining operations in the area, all the rivers and streams have
all but dried up.
Ironically, mining operations probably saved the Siria Valley communities from flooding after
Tropical Storm Felix. Had it not been for Hurricane Mitch, the San Martin open pit gold mine
would probably never have started operations. Just weeks after Mitch left a trail of destruction through Honduras in 1998, a heavily indebted Honduras was desperately in need of foreign exchange. The government of Honduras took advice from the UN’s Economic Commission on Latin America and the Caribbean, and hastily approved the 1998 Mining Law. The
law, heavily weighted in favour of foreign mining companies, brought the arrival of Entre
Mares, the Honduran subsidiary of Canada’s Glamis Gold.
If Siria Valley residents managed to avoid a severe beating from Tropical Storm Felix, the
presence of the San Martin open pit mine continues to inflict much pain and suffering on the
population. That was the chief message heard by the delegation when it finally reached
Honduras.
MINING FOR JUSTICE
9
Context for the Mission
On September 9-13, 2007, three parliamentarians from Canada and the United Kingdom
traveled on “The MPs’ Fact-Finding Mission on Mining Issues in Honduras”:
Alexa McDonough, (Canada, NDP, Halifax), Canada, Spokesperson for the NDP on Foreign
Affairs and International Development; Keith Hill, (UK, Labour, Streatham), parliamentary
private secretary to former Prime Minister Tony Blair; and Stephen Pound (UK, Labour,
Ealing North).
Development and Peace and the Catholic Agency for Overseas Development (CAFOD) sponsored the mission in response to requests from their common partner, Caritas Tegucigalpa,
to help advocate for a responsible and just mining law in Honduras. Previously, in the Spring
of 2007, on the request of Caritas, Canadian and British MPs had written to the Honduran
Congress to urge the latter to debate proposed reforms to the Honduran 1998 Mining Law,
and a visit to Honduras was seen as an appropriate follow up. Development and Peace was
also particularly concerned about Canada’s seemingly unconditional support for Canadian
mining projects in developing countries.
In June 2005, the Standing Committee on Foreign Affairs and International Trade (SCFAIT)
of the Canadian Parliament tabled its 13th report entitled, Mining in Developing Countries and
Corporate Social Responsibility. The report’s most groundbreaking recommendation: Canada
should introduce policies that require Canadian companies to comply with international human rights and environmental standards, including core labour rights, as a condition for receiving public assistance. The report also identified the need for legislation that holds companies accountable for their actions overseas.
The Government of Canada rejected any notion of mandatory measures for Canadian companies in their overseas operations, arguing that most companies adhere to voluntary codes
and act responsibly. The Government did agree, however, to hold a series of multistakeholder consultations on corporate social responsibility in Canadian mining, oil and gas
companies’ overseas operations.
In June 2006, the National Roundtables on Corporate Social Responsibility were launched in
Vancouver. Their Advisory Group comprised representatives of the extractives industry, academics and civil society organizations (CSOs), including the Canadian Council for International Cooperation, of which Development and Peace is a member. Four roundtables took
place, each with public outreach sessions in Vancouver, Calgary, Toronto and Montreal. CSOs
formed the Canadian Network on Corporate Accountability to support and advise the CSO
representatives on the Advisory Group.
On March 29, 2007, the Advisory Group published its landmark report—the result of an unprecedented consensus between the mining industry and CSOs. Among its recommendations: Canada should establish a Canadian Corporate Social Responsibility Standard to measure the performance of Canadian extractive companies in their overseas operations, and appoint an independent ombudsperson to verify compliance.
MINING FOR JUSTICE
The MPs’ Fact-Finding Mission on Mining Issues in Honduras was launched in the context of
the recommendations of the National Roundtables. By examining the mining sector, the mission sought to show how a weak regulatory framework allows foreign companies to take advantage, and behave in ways unacceptable in their home countries. This, in turn, would illustrate why Canada needs to make companies accountable for their overseas operations.
For it is simply not enough to say that Canada, “expects Canadian companies investing abroad
to respect all applicable laws and to conduct their activities in a socially and environmentally
responsible manner… and to work transparently and in consultation with the host government
and the local communities in which they operate.”1 This is currently Canadian policy, as outlined in a letter to Alexa McDonough from Foreign Affairs Minister Maxime Bernier. Yet as this
report will illustrate, the expectations that Canada has of Canadian companies operating
abroad, are often not met.
The sponsors chose Honduras because of our partner organization’s focussed work to advocate for just and responsible mining legislation, and because of Caritas Tegucigalpa’s work
with communities affected by the environmental and human impact of San Martin, an open pit
mine run by Entre Mares, a subsidiary of Goldcorp—a Canadian-based company.
The mission to Honduras far exceeded expectations. Members met with a cross section of
Honduran government, industry and civil society representatives. The delegation heard compelling stories, including the following:
•
The vast majority of Hondurans consider the current 1998 Mining Law inadequate and
biased in the favour of foreign mining companies;
•
Despite intensive and focussed efforts by civil society and some politicians to reform mining legislation, the powerful mining lobby represents a serious obstacle to a law that
represents the country’s interests;
•
Local mayors found out only by accident that the government had granted mining concessions in their municipalities;
•
The state prosecutor for the environment believes that weak environmental and mining
legislation undermines his ability to do his job;
•
The Minister of Natural Resources, Mayra Mejia, encounters obstacles ranging from common machismo to attempts by the mining industry to discredit her ministry;
•
Bishop Juan Jose Pineda spoke of the rampant corruption aided and abetted by unscrupulous foreign companies;
•
Entre Mares, a Goldcorp subsidiary, refused to pay a fine for environmental pollution
since it did not agree with findings of the Ministry’s environmental tests;
1
Maxime Bernier, Minister of Foreign Affairs, in a letter to Alexa McDonough and Catherine Bell, MP,
September 4, 2007.
10
MINING FOR JUSTICE
11
•
Mining operations have almost dried up rivers and streams in the area around the mine;
and
•
Eight years after relocating to accommodate the San Martin mine, families still lack title
deeds to their lands and fear future eviction.
•
The Honduran government has begun a process of testing to determine whether there is
a link between pollution from the San Martin mine and dermatological, respiratory and
gastric diseases prevalent in the local population
The case for accountability mechanisms for Canadian mining companies in their overseas
operations is clear and unequivocal. In the words of Cardinal Oscar Andrés Rodriguez of
Honduras: “It is… necessary to adopt regulatory mechanisms that guarantee that these
industries are made responsible for their actions and behaviour not only in the countries
where they operate, but also in their countries of origin and in the corresponding
international bodies.” 2
The Honduran Mining Law: A Chronology
The MPs’ Fact-Finding Mission arrived at a key moment in the process of reforming—or
abandoning—the 1998 Mining Law in Honduras.
There is little debate the Honduran 1998 Mining Law protects first and foremost the interests
of foreign mining companies. It contains a pitifully weak tax regime, allows mining operations anywhere in the country and offers major tax incentives to foreign companies. At the
same time, the law does not protect the interests of the state and the Honduran people: it
provides unlimited use of water supply without first guaranteeing the needs of the local
population, and gives communities only 15 days to file an objection to a proposed concession.
There is more debate about whether to reform the law, or to repeal it and introduce new
legislation. The question has divided civil society, giving the Honduran Congress the
opportunity to stall on legislation. Consequently, mining companies, including Canadian and
US companies, continue to profit from a regime extremely favourable to their interests.
The chronology of events below puts the mission into context.
2
Open letter to the Government of Canada to address the National Roundtables on Corporate Social
Responsibility from Cardinal Oscar Andres Rodriguez of Honduras, November 2006 (see appendix)
MINING FOR JUSTICE
12
2000 - 2005: A campaign leads to first attempts at reform
Local activists in the Siria Valley, the site of the San Martin open pit gold mine, are concerned about the mining operations of Entre Mares, a subsidiary of Glamis Gold (now
Goldcorp)—a Canadian-based company. Open pit mining, introduced to Honduras in the
1980s, uses cyanide heap-leaching to extract gold from low-grade deposits inexpensively.
The process, however, is potentially far more devastating than traditional mining methods,
both on the natural environment and on local people who are exposed to toxic materials.
The activists approach Caritas Tegucigalpa, the social affairs branch of the Catholic archdiocese of Tegucigalpa, for help to mitigate the social and environmental consequences of the
mine. Caritas quickly recognizes that no legal framework exists to protect the affected communities. The church organization starts working with civil society to reform the 1998 Mining
Law.
In 2002, with Cardinal Rodriguez as president, Caritas Tegucigalpa leads a cross section of
civil society organizations (CSOs) and the Association of Municipal Governments of Honduras
(AMHON) to form the Civic Alliance for the Reform of the Mining Law (Civic Alliance). The
coalition consults with communities affected by mining and with the mining industry itself to
develop consensus proposals to Congress for a reformed mining law. Both the Civic Alliance
and Caritas agree the state is not able to regulate open pit mining effectively. Banning the
practice seems the ideal solution.
In 2004, the mining sector strongly and repeatedly attack organizations campaigning for a
ban on open pit mining. The campaign for such a ban, however, quickly gains political support. In 2005, a year after the Civic Alliance presents its first draft reforms bill to Congress,
the leader of the opposition Liberal Party, Roberto Micheletti (current President of Congress),
calls for a ban on open pit mining.
The Civic Alliance recognizes that no consensus is possible with industry to ban open pit mining. It decides to leave the ban on open pit mining out of the draft proposals, and lobby the
Congressional Bill Amendments committee to introduce such a ban in the draft legislation.
Eight months of difficult negotiations follow. Finally, the Civic Alliance achieves what had
seemed impossible: a consensus for reforms to the law among civil society, government departments responsible for mining, and the mining industry itself.
In July 2005, the Dictamen (Proposed Reform Bill text) is signed by representatives of all
stakeholders, including ANAMINH (the association of metallic mining companies), the Civic
Alliance for the Reform of the Mining Law, AMHON (the Association of Municipal Governments), DEFOMIN (Department for the Promotion of Mining); and DECA (the Office for Environmental Evaluation and Control).
The first proposed bill includes a modest increase in local taxes, community consultations
before mining concessions are granted, the publication of a mine closure plan, a study of
water use in the Environmental Impact Assessment, a prohibition on mining in protected areas, and generally stronger environmental and social controls.
MINING FOR JUSTICE
13
In 2005, with all parties publicly in agreement on key provisions of proposed reforms, the
president of Congress promises publicly to Cardinal Rodriguez that Congress will approve the
law before the elections in December 2005. This promise, together with the consensus, makes
the Alliance feel confident of action.
2005 - 2007: Delays and division—the cracks begin to show
“A negative symbiosis between weak governance and the
worst corporate human rights abuses.”
John Ruggie, UN Special Representative on Human Rights,
Transnational Corporations (TNCs)
and other Business Enterprises.
In a 2006 report, Ruggie documented that 25 of 27 countries
with allegations of human rights abuses by TNCs had low governance indicators and high corruption indicators. Despite the
proliferation of voluntary codes in recent years, the implication
of TNCs in human rights abuses continues.
In November and December 2005, various readings of the bill are only partially carried out or
cancelled outright. Meanwhile, the country focuses on national elections in December. Concerned about a potential presidential victory for the Liberal party (which is perceived to be
closer to the mining sector than the Nationalist party), the Civic Alliance greatly intensifies its
lobbying. In January 2006, due to this pressure, further readings are tabled before the new
government gets sworn in, but without any result.
When the Liberal government of Manuel Mel Zelaya assumes power in January 2006, the
new President echoes calls for a ban on open pit mining “as long as Honduras lacks the
means to properly regulate this practice.” He states a new parliamentary committee is
needed to revise the reforms bill. This statement worries the Civic Alliance since it has spent
so much time ensuring the previous committee (led by the nationalist MP Arnoldo Aviles) is
well informed on the technical issues surrounding mining. The Civic Alliance is also concerned that a new committee might undo the long process of negotiations that led to the
2005 consensus.
As feared, despite the Civic Alliance’s intensive lobbying, the debate is reopened. The Cardinal asks publicly for Congress to pass the bill, but the first months of the new government
bring a series of disappointments and unmet promises.
By July 2006, these difficulties lead to a reconfiguration of the Civic Alliance for the Reform
of the Mining Law, and a breakdown in civil society’s united front. While never officially
breaking from the initial coalition, ASONOG (Network Association of NGOs) forms a new
group known as the Civic Alliance for Democracy3.
3
Members of the Civic Alliance for Democracy include ASONOG, which is made up of 15 environmental
organizations, the Siria Valley Environmentalist Committee and COFADEH, (the Committee of Relatives
of the Disappeared).
MINING FOR JUSTICE
In the summer of 2006, ASONOG supports a protest march in Copan under the leadership of
the Bishop of Copan, Luis Alfonso Santos. The protesters demand a completely new mining
law, which would contain a ban on open pit mining and the use of potentially dangerous
chemicals in mining such as cyanide and mercury. The new alliance and the protest march
give Congress the opportunity to withdraw the reform bill from Parliament altogether.
The new coalition has ties to the radical and populist minority party in Congress, the Party of
Democratic Unification (Partido de Unificación Democrática), led by environmentalist and human rights campaigner Dr. Juan Almendares. Caritas Tegucigalpa fears this association with
the minority party will overly politicize the debate, leading the struggle for a just and responsible mining law into a deadlock of rigid antagonism and resistance.
Caritas and the rest of the Catholic Church oppose the new coalition’s demand for a new mining law for several reasons:
•
The existing consensus between civil society, the government and the mining industry is significant and hard won; it would be counterproductive to propose a different strategy.
•
By May 2006, the existing bill is in third reading4 ; eight proposed reformed articles have already
been approved. In theory, the bill could still be passed with little further delay.
•
A new bill would take at least another four years, which would simply give mining companies
continued free rein to profit from a lax regime heavily weighted in their favour. In addition, the
more radical demand of a ban on open pit mining would ultimately make operations unprofitable
for most foreign companies; this would give mining companies the opportunity to protract the
debate over several more years without any change in legislation.
Other political considerations are at play. Caritas believes the Liberal party has been stalling
the reforms bill. Analysts believe the party wants to use the mining issue to further its ambitions in the presidential elections of 2009. Many also believe some environmental groups
would like to use a new mining law to launch a new Green party, creating more distance
from Cardinal Rodriguez and the majority sector of the Catholic Church.
Towards the end of 2006, the mining law debate is once again brought to the table. The Supreme Court rules that 13 articles of the current law are unconstitutional, including the provision that allows companies free access to water without first ensuring that needs of local
communities are met. Caritas and the Civic Alliance for the Reform of the Mining Law pressure Congress to renew discussions on the proposed bill. At the same time, the Civic Alliance
for Democracy works with a Liberal Party presidential advisor, Nelson Avila, to come up with
a completely new bill.
In March 2007, the divisions within civil society over the mining law give President Micheletti
the opportunity to send the reforms bill back to the Executive. This temporarily removes the
pressure to legislate from the Congress.
4
The first two readings of the Bill concluded with approval on March 29, 2006, and April 20, 2006, respectively.
The third reading began on May 9, 2006.
14
MINING FOR JUSTICE
15
2007 - Building bridges and consensus
Throughout early 2007, led by Caritas, the Civic Alliance for the Reform of the Mining Law
works hard to bring civil society together and to re-negotiate a common position on the reforms bill. The Civic Alliance for Democracy is involved in these discussions; it publicly announces it would support the reforms bill if the bill met some of its basic demands. Both Alliances agree that mining legislation must include the following:
•
An increase from 15 to 30 days for communities to register their opposition to requests
for new mining concessions, and the use of local radio to transmit information;
•
Requirement for Free Prior and Informed Consent (FPIC) before granting an exploitation
concession through cabildos abiertos (community assemblies);
•
Participation of Municipal Environmental Units (UMA) in environmental control and followup activities carried out by DECA and DEFOMIN (central government bodies);
•
Requirement that companies draw up a Mine Closure Plan from the outset, including details of environmental impact mitigation;
•
Requirement that the Environmental Impact Assessment (EIA) include a study of water
use, establishing the principle of domestic use as a priority, according to domestic law;
•
A ban on mining in protected areas such as watershed areas, beaches and tourist areas,
environmental regeneration zones, cities and highly populated areas; these zones, excluded by domestic law or international agreement, make up 34% of Honduran territory;
•
Stronger environmental controls on mining activity and the creation of a guarantee fund
to pay for damages;
•
Better protection for the rights of property owners who live alongside or are affected by
a mineral concession;
•
Higher tax duties for mining companies, and an end to the generous tax incentives such
as duty-free import of capital items, including vehicles, that are unrelated to the mining
operations;
•
The creation of a new body called INGHEOMIN (The Honduran Institute of Geology and
Mines) that would regulate (rather than promote) mining as its sole function. Stronger
laboratory capacity and fully trained and resourced personnel would strengthen the proposed body; and
•
Greater powers for government to cancel mining concessions; 17 potential infractions to
be listed instead of one.
MINING FOR JUSTICE
16
In the spring of 2007, faced with being dragged into party politics and following discussions on the two most contentious issues, both Alliances agree to call for the following
points in the reforms bill:
•
A ban on open pit mining and the use of dangerous chemicals, including cyanide and
mercury5; and
•
12% taxes for local municipalities affected by the mine (5% to the municipality where
the mining concession is registered, 5% to neighbouring municipalities affected by the
mine and 2% to the Governor’s office of the province where the mine is registered), as
well as a 15% royalty on production to central government6.
On August 28, 2007, through amendments to 26 articles, the current bill reflects all of the
above points.
July - August 2007: More cracks in the consensus
During ongoing discussions, the Civic Alliance for Democracy sends mixed messages about
its commitment to reforms.
First, it presents a proposal for completely new legislation to Mayra Mejia, Minister for Natural Resources, and lobbies the Liberal Party to support a new law. This action goes against
the supposed consensus that has been reached on the content of the reform bill.
Second, on July 17, 2007, as part of its repeated clamour for the repeal of the old mining
law and the introduction of new legislation, the popular social movement affiliated with the
Civic Alliance for Democracy joins a national protest involving 7,000 grassroots members of
the broader social movement. The protestors set up roadblocks, ignoring calls from the authorities to demonstrate without blocking roads.
Police heavily repress the ensuing demonstration. While all democratic sectors in Honduras
criticize the repression, the Civic Alliance for the Reform of the Mining Law believes that
demonstrators calling for a new mining law have been misled. In the context of real progress
in achieving a new consensus among civil society, it calls for a just and responsible mining
law.
While the mining law provokes intense debate in the media, the Honduran private sector and
mining industry work quietly behind the scenes to block the reforms bill. In August, the London-based Mining Journal publishes an interview with Santos Gabino Carvajal, President of
the mining association ANAMINH.
5
In the interests of creating a unified front for civil society, the Civic Alliance for Reforms to the Mining Law
adopted the other alliance’s demand for this ban. This is the one issue that the mining industry totally opposes.
6
This proposal comes from the Civic Alliance for Democracy. The Congressional Bill Amendments Committee,
which considers the proposed taxes very high, has asked the Honduran tax collection institution to comment on
taxation levels before introducing them into the bill.
MINING FOR JUSTICE
17
He states the proposed reforms to the mining law would be a death knell for the industry7.
The journal also reports the Italian Prime Minister has raised concerns with President Zelaya
that reforms would damage Italian mining investments. During a state visit of the Brazilian
president to Honduras, Yamana Gold executives voice concerns that reforms would affect
their investments.
On August 17, 2007, one month after the demonstrations, Roberto Micheletti, President of
the Congress, announces he will formally withdraw the bill from Congress, send it back to
the Executive, and ask for a new bill.
In September 2007, the MPs’ Fact-Finding Mission arrives in Honduras. The parliamentarians
meet with politicians, policymakers, members of the mining industry and civil society to gain
further insight into the situation in Honduras, and what lessons it holds for Canada and the
UK. They urge Roberto Micheletti, President of the Congress, to give the reforms bill a
prompt reading in the Congress.
September 2007: policy and political developments during the mission
Even as the mission arrived in Honduras, events continued to unfold rapidly. During highlevel meetings with Honduran officials, the delegation was able to voice its concerns about
the stalled legislation.
On September 11, 2007, the delegation
met with the Siria Valley Environmentalist
Committee. This committee, formed by
communities affected by the San Martin
open pit gold mine, is a member of the
Civic Alliance for Democracy. The committee’s president Martin Erazo, said the committee will support either reforms to the
current law or a new law as long as the
end result reflects the population’s demands. This may or may not conflict with
the position of the grassroots movement
associated with the Civic Alliance for Democracy, which has consistently called for
a new mining law.
7
Photo: CAFOD
On September 10, 2007, the Civic Alliance for Democracy called on Congress to continue discussions of the current bill. This call was in stark contrast with the vociferous message heard
earlier in the summer from the grassroots component of the movement.
The delegation listens to the demands of the Siria
Valley Environmentalist Committee
Mining Journal, August 10, 2007 New Law will “end” mining in Honduras.
Photo: CAFOD
MINING FOR JUSTICE
18
On September 12, 2007, the delegation met with
Roberto Micheletti, President of the Congress. If the
Executive returned the bill, he said, Congress would
fully debate it before the current session ended. In
theory, this meant the bill could become law in a
matter of months. It is still unclear how the Bill
Amendments Committee would respond to the taxation proposal since the 27% rate is believed to be
unrealistic. In addition, the mining companies bitterly
oppose the ban on open pit mining.
The delegation with Roberto Micheletti,
President of the Honduran Congress
Findings of the Mission
Rampant Corruption and Conflict of Interest
"It is a very sad thing for me to say that one of our main
problems and one of the main reasons we are poor is because
of corruption. This is a Honduran problem, but it also comes
from abroad. There are some foreign companies who are
helping to stir up corruption here.”
Bishop Juan Jose Pineda, auxiliary Bishop of Tegucigalpa
Honduras ranks 131st out of 179 countries on Transparency International’s 2007 Corruption
Perceptions Index. It is commonly believed that greedy government officials and politicians
in the Global South fuel corruption in their countries. And corporations in Northern countries
are quick to denounce corrupt local practices. Yet, as Bishop Juan Jose Pineda pointed out,
bribes by international companies fuel this corruption.
Weak governance goes beyond the mining industry, tainting all areas of national life. In one
flagrant example, Honduras’ Attorney General, Leonidas Rosas Bautista, is the legal representative of 31 mining companies. A political appointee, Rosas Bautista is responsible for supervising the Special Prosecutor for the Environment, Aldo Santos. According to the Washington Post, Rosas Bautista openly stated he was accountable only to the politicians who put
him there8.
In the context, the 1998 Mining Law is an example of weak legislation in a system of weak
institutions and widespread corruption. The San Martin open pit gold mine, owned by Goldcorp subsidiary Entre Mares, provides several examples of how an inadequate legal framework has led to mining companies behaving in a way that would be unacceptable in Canada,
or in any other country with a stronger institutional framework.
8
Washington Post, Honduras losing Steam on Corruption Fight, July 27, 2007, by Marcela Sanchez.
MINING FOR JUSTICE
19
1.
When DEFOMIN awarded the San Martin concession to Entre Mares, it ignored the
fact it had already awarded the concession to another company, La Caridad under
the 1968 Mining Code. In July 2007, La Caridad sued DEFOMIN for US$4 million for
its loss of title and profits. If the Honduran courts rule in La Caridad’s favour, the
government would have to compensate La Caridad under the current 1998 Mining
Law; however, the government argues that, as both concessions were awarded under the 1968 Mining Code, La Caridad must seek compensation under civil law from
Entre Mares, rather than from the government.
2.
The mining concession (which belongs to the government) guaranteed the International Finance Corporation (IFC) loan to Entre Mares: if Entre Mares defaults on that
loan, the Honduran government would have to bail out the company. Entre Mares
hired the legal representative of the IFC in Honduras (Eduardo Villacorta) after he
helped secure a loan for the company.
3.
Contrary to standard practice, Entre Mares has no fund to cover compensation claims
from any affected party related to accidents or environmental pollution. The absence of
such a fund is a direct consequence of a lax mining law. It means, in essence, that a
mining company would not be held accountable for major environmental pollution. The
reforms bill proposes to oblige foreign mining companies to have such a fund.
Photo: CAFOD
Impact of the San Martin Mine
Stephen Pound and Rodolfo Arteaga
Entre Mares began exploring the Siria
Valley region in 1996, covering the
municipalities of El Porvenir, San
Ignacio and Cedros for gold deposits.
One of the company’s first employees, Rodolfo Arteaga, worked for Entre Mares for more than four years.
After three years, he developed
chronic sinusitis and other respiratory
problems, eventually forcing him to
give up the work. He is now a member of the Siria Valley Environmentalist Committee.
The delegation met with him to learn
more about the impact of open pit
mining on Palo Ralo, his community.
Forced relocation
“They arrived in Palo Ralo, and asked us if we wanted to work with them in exploratory operations for
mining,” Rodolfo recalled. “We said at the time, we are farmers here and we live off our cattle. But they
said to us that mining was better, it would make more money.”
MINING FOR JUSTICE
20
In 1999, a few months after the rapid approval of the 1998 Mining Law, which allowed mining operations anywhere in the country, Entre Mares moved forward on the open pit gold mine. The company
approached inhabitants of Palo Ralo, offering each family US$5000 to relocate to a new village that
they would build two km away.
“At the time, no one really wanted to move,” Rodolfo recalled. “But the company told us that if we
didn’t accept their offer, the government would come and forcibly evict us, and we would be offered a
lot less in compensation. I didn’t want to move. My family had lived on those lands for 150 years. But
we saw we had no choice.”
No government announcement of mining concession
No government representative visited the community to inform them of an imminent mining concession; the community heard about it from Entre Mares. This lack of communication clearly runs counter
to the 1998 Mining Law, which states the government must announce mining concessions in the official Gazette and give affected communities 15 days to lodge an objection. In practice, the Gazette is
not accessible to communities outside of Tegucigalpa. (The reforms bill proposes that communities
have 30 days rather than 15 days to object to a mining concession, and that such information be published in newspapers with national circulation and on national and local radio).
Photo: CAFOD
Launch of mine before official registry
Entre Mares began building the San Martin mine
on January 10, 2000, two months before its official registry with the mining regulatory body DEFOMIN, (Direccion de Fomento de la Mineria).
The San Martin open pit gold mine
Launch of mine before granting of environmental licence
Entre Mares also began operations before obtaining an environmental licence from the Secretariat of Natural Resources and Environment (SERNA). Indeed, SERNA fined Entre Mares 5000
lempiras for beginning operations before it issued the Environmental Licence on March 13,
2000. Both Caritas and SERNA documented that Entre Mares built a dam on the Agua Tibia
stream in early 2000 to produce 60,000 gallons of water daily, necessary for its operations. To
obtain the environmental licence, Entre Mares was required to present a plan to mitigate any
environmental ill effects caused by its operations, including depletion of the water supply. The
company did eventually present an environmental mitigation plan that although in compliance
with Honduras’ weak regulatory framework, local communities and Caritas Tegucigalpa generally found the plan to be inadequate.
MINING FOR JUSTICE
21
In addition, following complaints from local residents that the dam was creating water shortages, the Direction of Environmental Control and Evaluation (DECA) obliged Entre Mares to
destroy the dam. Both Honduran environmental and penal law outlaw altering the natural
water courses without prior authorization. On October 30, 2000, the Special Environmental
Prosecutor launched a penal prosecution against Entre Mares related to these complaints9.
The Supreme Court threw out this complaint in 2005.
Since the start of operations, the community charges that 13 streams and water courses
have dried up; the delegation did see dried-up river beds in the area.
Mining operations have dried up rivers
in the vicinity of the mine
Lack of Title Deeds to Property
Almost eight years after families in the hamlet of Palo Ralo were relocated to accommodate
the mine, some still have no title deeds to their new lands. Moreover, many title deeds that do
exist contain errors in names and spelling.
In Honduras, land ownership is often contested. Unscrupulous individuals pay lawyers to use
legal loopholes to usurp lands from the poor. Those who lack the required papers risk arbitrary
eviction. For example, Olimpia Arteaga [no relation to Rodolfo] is a grandmother who has
raised her four children single-handedly. She is one of those still waiting for title deeds. She
told the delegation she worries about possible eviction every day.
Fears of eviction from the new land are well founded. While Entre Mares bought new land for
the community legally, and handed it over to the residents, the mining concession still owns
part of it. When Entre Mares closes the mine and leaves by 2010, the concession reverts to
government ownership. In future, those living on government lands could be evicted.
9
The Special Prosecutor’s charges accused Entre Mares of ‘breaking the law by damaging the environment, putting in danger the health of the population of Honduras, the eco-system in general and crimes against the public
administration, including usurpation of waters, aggravated damages, a forestry contravention of illegal use of
forestry resources, and failure to respect a local authority, illicit acts committed by Minerales Entremares.’”
MINING FOR JUSTICE
22
Attempts to Weaken and Divide the Communities Affected by the Mine
Over the years, opposition to the San Martin mine has gathered force. At the centre of this
resistance is the Siria Valley Environmentalist Committee, supported by Caritas Tegucigalpa,
Development and Peace and CAFOD.
Entre Mares is now starting to close the mine, and the Environmentalist Committee is gearing up its campaign to ensure responsible closure. Community members reported that Entre
Mares has started its own public relations campaign to get local residents to support the
company and to discredit and weaken opposition to the mine, as well as the demands of the
Environmentalist Committee. To do this, Environmentalist Committee members claimed, the
company has put together a network of promotores in each of the four communities affected
by the mine; these are grassroots PR agents who counter opposition to the company’s proposals and gather signatures of support.
Photo: CAFOD
Environmentalist Committee members also described an attempt to create a parallel community council (patronato) in Palo Ralo that would promote the company’s interests rather than
demand title deeds. Rodolfo Arteaga is president of the legally constituted patronato, which
was accorded its legal statute on April 26, 2006. Arteaga said that Entre Mares has been
working with the departmental Governor to dissolve or undermine the patronato.
The heap leaching process whereby cyanide is used to extract gold ore
Potential impacts of environmental pollution on health
The community has denounced the mine for increasing naturally present arsenic in the water
to levels that are above internationally and nationally acceptable levels. Rodolfo Arteaga said
he found out in 2004 that arsenic levels were too high: a contact in DEFOMIN unofficially
sent him a copy of the relevant water test that Entre Mares had helped carry out. It was not
until Arteaga and the Environmental Committee went to the media that the company acknowledged a problem and piped in clean water from a nearby area unaffected by arsenic.
The community claims Entre Mares and DEFOMIN knowingly let the people drink water with
high arsenic levels for four and a half years; this negligence is one factor that led the community to claim that various respiratory, skin and gastro-intestinal diseases affecting residents are related to environmental pollution caused by the mine (see below).
In 2005, Caritas and the community documented a leak from one of the ponds where the
company sends gold deposits treated with cyanide after the heap-leaching process. The
company had attempted to deepen the pond, anticipating heavy rains and a possible overflow. These efforts pierced the membrane protecting the earth from contamination, allowing
residual waters from the “Duck Pond” (pila de los patos) to slowly but surely infiltrate the
Guajiniquil gully; as a result, during heavy rain, one section turns into a polluted marsh.
MINING FOR JUSTICE
23
Entre Mares appeals substantial fine for pollution and damage
The Environmentalist Committee lodged a complaint with the Ministry of Natural Resources
about the above leak. In April 2007, the Ministry announced a fine to Entre Mares of one
million lempiras (about US$55,000), the highest possible administrative penalty. The ruling
found Entre Mares responsible for carrying out “polluting and damaging activities” that
contravene mitigation measures set out in its contract with the Honduran government, as well
as Article 112 b of the Environmental Law. The ruling sets out the evidence for its findings:
•
Water samples from the Guajiniquil gully show arsenic concentration levels above limits set
by the Honduran government and other international standards from Canada and the US.
[Technical Report No. AGA-II-016-08-2006 published by the Centre for Study and Control
of Pollution (CESCCO), 16 August 2006]
•
In July 2005, total cyanide concentration levels in the leaching pads (0.63 mg/l) exceeded
those permitted by the Honduran government (0.050 mg/l). Since then, most samples
have exceeded the permitted limit. [Technical report No. AGA-II-06-10-2006 of CESCCO,
10 June 2006]
The ruling concludes these unacceptably high levels of cyanide and arsenic have “resulted in
adverse environmental impacts, affecting the quality of the water used by the communities
surrounding the San Martin Mining Project and the course of ‘Las Casitas’ gully.” It also concludes that “discharging waters with polluting substances” has had an adverse effect on the
Guajiniquil gully.
Photo: CAFOD
In September 2007, Entre Mares officials told the delegation they were adamant that the water testing had not been carried out correctly, which was the reason that they refused to pay
the fine. Manager Eduardo Villacorta said the company had appealed the ruling, but SERNA
had not yet responded. When pressed, Villacorta said the company believes the fine is the
government’s attempt at persecution; it would only pay if forced by a judge.
Alexa McDonough addresses GoldCorp and Entre Mares officials and
gathered personnel MINING FOR JUSTICE
There is no appeals procedure for such a fine. Given the weakness of the courts, and the
political appointments in high level positions in the judiciary, it is unlikely any court will force
Entre Mares to pay this fine, especially since the Supreme Court threw out the penal suit
launched by Special Environmental Prosecutor Aldo Santos in October 2000 (see above.) In an
interview with the delegation, Natural Resources Minister Mayra Mejia stressed that she is constantly under strong pressure from the mining industry, who have attempted to discredit her
on several occasions. She was frank with the delegation: she would not have dared to levy a
fine if she was not certain that it was warranted by technical findings.
Local population claims pollution from the mine has caused disease
In the wake of SERNA’s findings regarding environmental pollution, the Environmentalist
Committee and Caritas Tegucigalpa also filed a claim with the Public Ministry. It argued that
various skin and gastro-intestinal diseases, as well as respiratory problems, in the local population were linked to environmental pollution caused by the mine. In August and September
2007, the Public Ministry and SERNA responded by sending teams to take blood, urine, and
skin samples from 42 potentially affected people, including a control group of 30. Given the
controversy, an independent laboratory in Colombia offered to analyze the results. To date,
the results have not been made public.
Entre Mares has always maintained that mine activity has not caused any disease. It has
stressed that its workers are all healthy, even though they are constantly exposed to dust
and chemicals from the mine. Nonetheless, instead of welcoming an opportunity to prove the
company’s innocence, Entre Mares immediately contracted a high profile local forensic anthropologist. It sent him with company officials to the Siria Valley to observe sample taking.
Local newspapers later featured the forensic anthropologist’s criticisms of the procedure.
Entre Mares later told the delegation that 12 or 13 errors in sample taking had been observed.
Often the effects of chronic exposure to lower levels of arsenic only become evident 10 to 20
years after first exposure. Considering Entre Mares only started operations in 2000, the impact of arsenic on people’s health will only become clear long after the company has left.
In the context of the controversial sample testing, Minister Mejia told the delegation that
ANAMINH (the Metallic Mining Industry Association) and the Honduran Chamber of Commerce have tried, once again, to discredit her. They have gone so far as to pay for advertisements in the Honduran press to denounce the Ministry as anti-industry.
The political controversy illustrated above suggests the battle to prove Entre Mares’ responsibility for certain diseases will be arduous and protracted. The delegation applauded the efforts and diligence of the Honduran government to test for pollution and its link to disease.
While it acknowledged the company’s right to appeal any government ruling, the delegation
found the company’s tactics around the biological testing process to be inappropriate and
heavy-handed. The company, the delegation considered, should allow the government to
carry out its forensic testing work unhindered. If it believes the tests were less than rigorous,
it could appeal the subsequent rulings.
24
MINING FOR JUSTICE
25
The Environmentalist Committee’s Demands
When the delegation met with the Environmentalist Committee, committee members read an
open letter to the Government of Canada asking for support in the struggle for justice and
reparation. The Committee listed its demands:
1. The company should compensate all Siria Valley residents for health damages caused by
pollution from the mine;
2. The company should clean up all water sources before it leaves;
3. The company should reforest land with the native species of trees and shrubs in place
before the company arrived;
4. All the relocated families in Palo Ralo should receive legal title deeds, and those deeds
with mistakes should be legally rectified; and
5. The company should decontaminate land and prepare it for agricultural activities.
In early November, the community added the following demands:
6. Entre Mares should pay the one million lempiras fine imposed by SERNA (see above);
7. The company should finance a new Environmental Impact Assessment on the area
affected by the mine to assess damages caused by seven years of mining operations. Only
then can the mine closure plan be sure to address environmental damage and reparation
properly; and
Photo: CAFOD
8. Given SERNA has already assessed that previous discharges of residual waters had
unacceptably high levels of pollutants, Entre Mares should stop pressuring the government
to allow new discharges.
Alexa McDonough (MP, Canada),
Stephen Pound (MP, UK), Keith Hill (MP,
UK) with the Siria Valley Environmentalist
Committee
MINING FOR JUSTICE
The Latin American symbolic Tribunal Del Agua rules that Entre Mares must
take responsibility for environmental pollution around the San Martin mine
On October 11, 2007, the Latin American Water Tribunal, a symbolic body supported by Development and Peace, ruled Goldcorp Inc.(via its subsidiary Minerales Entre Mares de Honduras, S.A) is “guilty and must take responsibility for inappropriate use and contamination of
water sources in the [Siria Valley] region and for causing harm and risk to the ecosystem
and to human health.” The Siria Valley Environmentalist Committee see this moral ruling as
an important one, that will support them in their struggle for justice.
The Latin American Water Tribunal is an organization set up to defend and promote the right
of the population of Latin America to have access to clean water. It receives complaints
from civil society organizations throughout the continent related to states’ failure to defend
communities’ right to water, considers and investigates the allegations, and then rules,
based on international human rights and environmental law. Its findings are of a moral nature, and are generally used by communities affected to educate the public at large about
the particular case, and sometimes to support a community’s judicial complaint under the
legal system in their own country. The Tribunal is also committed to organizing educational
activities to promote the right to water throughout Latin America.
In the Siria Valley case, the ruling came after a symbolic hearing with evidence presented by
the Siria Valley Environmentalist Committee. The Tribunal also found that government authorities failed to “carry out their obligations...and acted “ in a manner that is harmful to life,
health and nature.” Entre Mares was invited to the hearing but did not respond or attend.
The Tribunal also made the following recommendations:
1. That the State of Honduras suspend clause No. 10 of the mining concession contract between the government and Minerales Entre Mares de Honduras, S.A because of grave
damage to the air, the flora and fauna, and the community;
2. That the State of Honduras comply with its international obligations regarding human
rights, including the right to effective justice, given that no legal cases have thus far led to
clear sentencing;
3. That the company finance an independent and participatory evaluation of the degree of
contamination of the water, the land and the human population, as well as urgent epidemiological evaluations of damage to the health of the population, especially children;
4. That the company compensate communities for damages; and
5. That, as a subsidiary of a Canadian multinational, Minerales Entre Mares de Honduras, S.A
apply the environmental and social norms currently in force in Canada.
26
MINING FOR JUSTICE
27
Postscript
December 2007
Eight years after the start of mining operations at San Martin, gold prices on the international
market are at an historic high. Goldcorp’s second quarter statement for 2007 records revenue
of $567 million, up 15% from the second quarter of 2006; it has increased gold production by
43%. Goldcorp also lists a cash cost of $133 per ounce, compared with an average realized
price, or sale value, of $665.
Prospects are less rosy for the Siria Valley communities. Will acid mine drainage kick in after
the mine closes? If it does, how will it affect the land and future agriculture? The effects of
chemicals and pollutants on human and animal health are also unclear—the results of
laboratory tests carried out in Colombia remain locked in government vaults. The communities
continue their struggle to ensure the company assumes liability for any environmental damage
and disease that occurs after it leaves.
Apart from the potential health and environmental consequences of the San Martin mine, the
departure of Goldcorp will not have a dramatic impact on the Siria Valley. About 200 local
people have held short-term jobs at San Martin since 1999. Once that mine closes, ex-miners
will likely return to cattle farming, which was a thriving business before the mine arrived. The
communities will not be waiting for a new mine to appear.
In Tegucigalpa, discussions on reforms to the Mining law continue with constant input from
church, environmental and human rights organizations, the mayors’ association and the mining
companies. Civil society organizations, led by the Civic Alliance for the Reform of the Mining
Law, and the Civic Alliance for Democracy, are now united on desired reforms. This unified
position is the result of many hours of discussions and negotiations. The Honduran private
sector continues to loudly announce that reforms will be the death of the mining industry:
Yet many in government believe that a temporary close down of mining operations might not
be a bad thing. Honduras simply needs a good mining law. With stronger governance in the
mining sector, the government is confident that Honduras could eventually attract investors
that would develop a more equitable and sustainable approach to mining.
In Canada, Goldcorp officials drop by Alexa McDonough’s Ottawa office and announce that,
despite concessions previously awarded to them by the Honduran government, they will
launch no new mining operations in Honduras: proposed reforms to the mining law, they say,
are not in their interests. The word has got around: the gold and mineral resources of
Honduras will no longer be given away for free.
Photo: Matt Parkes/CAFOD
MINING FOR JUSTICE
28
‘We must globalize human solidarity so as to
include sharing the riches of the earth for
the common good, with fairness and equity;
with respectful options for the poor and
self-determination of communities.
If we accept the globalization of wealth,
technology and power, without the
globalization of human rights and
human dignity, then we have failed.’
Cardinal Oscar Andres Rodriguez
May, 2004
MINING FOR JUSTICE
29
Appendices
Statement by MP's on Conclusion of fact-finding Mission
Tegucigalpa, 13 September, 2007
At the invitation of His Eminence Cardinal Oscar Andres Rodriguez, we, members of the British and Canadian Parliaments, have spent four days in Honduras. The purpose of our visit has been to hear from all
sides in the debate on mining in Honduras, and to offer our support to Caritas Honduras and other sectors
of civil society in their efforts to secure a just and responsible mining law. We have appreciated the openness and availability of everyone we have met, from local communities to the highest levels of Congress.
Ethical standards in extractive industries, including gold mining, has become highly significant on the international agenda, as we see the disruptive effects in terms of conflict and corruption of oil extraction, diamond and gold mining around the world. The governments of both the United Kingdom and Canada have
participated in international efforts to set standards of transparency for extractive industries. In Canada, a
round table representing all sectors, including mining companies, has recently recommended that Ottawa
should establish a Canadian Corporate Social Responsibility Standard, and appoint an independent ombudsman to verify compliance with such a standard.
As foreign MPs, we recognise that our first duty is to ensure that mining companies from our own countries
behave with integrity in their dealings with countries such as Honduras. As such, we are highly aware of the
significance of the debate around gold mining in Honduras. We live in one world. We wish to do whatever
we can to promote the protection of the environment and justice for local communities in Honduras.
During our stay, we have met with a broad cross section of Honduran government and civil society representatives. We have visited the Siria Valley, where we met with local communities and the managers of the
San Martin mine. We have come to two conclusions:
While there is not absolute national unanimity, there is a broad consensus on the urgent need for reforms to
the mining law, and the widespread desire that the present discussions on the reforms should lead to the
adoption of the bill in Congress. Our last meetings took place with Roberto Micheletti Bain, president of
the National Congress, and Arnoldo Aviles, president of the Bill Committee on Natural Resources. Mr.
Micheletti gave a firm commitment that the reforms bill, if returned to the Congress by the Executive,
would be fully debated by the Congress in plenary before the end of the current session. This commitment
was reiterated by Arnoldo Aviles. We have every confidence that this will become reality by the end of the
year.
MINING FOR JUSTICE
We are convinced that the conflicts around gold mining in Honduras are the consequence of the deficiencies of the present mining law. Our visit to the communities in the Siria Valley and the San Martin mine run
by Entre Mares (Goldcorp) illustrated this. We are also convinced that the lack of a clear regulatory framework allows mining companies to define the terms of engagement with the government of Honduras, with
local communities and with the environment.
A reform of the law alone will not be sufficient to correct this situation: we see an urgent need to strengthen
the technical and operational capacity of state institutions including increased human, technical and financial
resources that are needed to adequately monitor and regulate transnational mining corporations that already
have vastly superior resources at their disposal.
We are aware that this debate is one that transcends national borders, and the responsible extraction of
natural resources is an issue that concerns us all. We pledge to bring these issues to the attention of our
own governments, and we recognise that effective regulation in Honduras must be complemented by regulation in the home countries of the mining corporations. We call on all home countries of mining, oil and
gas corporations operating in the countries of the Global South, in particular on Canada, to enact standards
of corporate social responsibility in overseas operations.
Keith Hill, MP (Labour) Streatham, United Kingdom
Stephen Pound, MP (Labour) Ealing North, United Kingdom
Alexa McDonough, MP (New Democratic Party) Halifax, Canada
30
MINING FOR JUSTICE
31
Letter to Canadian government from Cardinal Rodriguez, November 2006
Message from His Eminence the very Reverend Cardinal Oscar Andres Rodríguez
Maradiaga to the Participants in the Roundtables on the Social Responsibility of
Canadian Mining Companies Overseas
Oficina del Cardenal
It is with hopeful anticipation that we learned of the initiative of the Canadian Government and various
national social sectors to reflect on the social responsibility of Canadian mining companies operating
overseas. We trust that this initiative will translate into measures and policies that will lead to a greater
regulation of the latter in order to guarantee our people full enjoyment of their rights to a healthy
environment, environmental sustainability in the companies’ operations and a significant contribution to
development for our peoples.
In this context, the accelerated environmental degradation and depletion of non renewable natural
resources, compelling nations to debate the existing tension between environment and the expansion of
trade, need to be addressed. Behind the efforts of the WTO and other initiatives are a number of
questions: Can natural resources be considered tradable goods? Should natural resources be traded in the
same way as any other commodity? Do all natural resources have a hierarchical value in function of
their uses and their contribution to the fulfillment of human needs? Can we consider ethical the
extraction and exploitation of mineral resources, at the expense of other resources, such as fresh water
and forests? In short, should political and commercial ends be at the centre of and the driving force of
human relations?
The above dilemma is not an economic one, nor an environmental one, it is eminently ethical, as it
brings us face to face with the need to review not only the rules and practices of trade in the natural
resources sector, but also to review the level of stewardship and responsibility with which we care for
natural resources when considering this question through a lens of social and international solidarity.
We must also evaluate whether the commodities produced through the exploitation of natural resources,
in particular those of a limited and non-renewable nature, justify the economic, environmental and social
costs that are generally borne by the communities and nations who produce these commodities, and who,
paradoxically, nearly always live in conditions of greater poverty and vulnerability than those
communities and nations for whom they are produced.
In recent years, this dilemma has been more in evidence in the context of the exploitation of precious
mineral resources, such as gold and silver, through modern techniques that lower extraction costs, while
causing significant environmental impacts and risks that are not always possible to mitigate or neutralize
throughout the exploitation period by the companies engaged in these activities.
MINING FOR JUSTICE
The increasingly frequent conflicts in different parts of the world between mining companies and
affected communities, as well as the growing efforts of civil society organizations to demand stricter
regulation, more rigorous monitoring, more responsible and transparent practices, are a sign that we can
no longer continue to adhere solely to the logic of the business market that operates on the principle of
¨the less invested, the greater the profits.¨
We must move towards a vision of Corporate Social Responsibility, which cannot be reduced to
corporate voluntarism alone but must be complemented by a social responsibility regulated by the state
and international organizations.
Such a redefinition is urgent, as the depletion of natural resources has been substantially accelerated
partly because of the growing demand for precious minerals.
The investigation and development of new technologies for the exploitation of mineral resources which
are also compatible with conservation and preservation of the balance of eco systems is increasingly
urgent.
No less vital is the promotion and adoption of ethical norms in trade and aid relations between countries
of the North and South.
Trade treaties must be accompanied by ethical agreements and codes in order to resolve the current
contradictions that occur when on the one hand, world or regional summits adopt policies of
environmental protection and conservation, that are later made operational by aid programs, while at the
same time, high tech industries that generate or increase levels of social and environmental vulnerability
are promoted. These same industries, taking advantage of the weak legislation in our countries, behave
in an unethical and irresponsible manner that fuels corruption, environmental degradation, pollution of
our natural resources, and social divisions in our communities.
We cannot continue with ambivalent policies where what we build with one hand, we destroy
immediately with the other. It is time to review market and trade rules and to complement them with
values of solidarity, justice, subsidiarity, and shared responsibility in our actions and in the future of
humanity.
It is also necessary to adopt regulatory mechanisms that guarantee that these industries are made
responsible for their actions and behaviour not only in the countries where they operate, but also in their
countries of origin and in the corresponding international bodies.
Today, the message of the Latin American Bishops at the Fourth Episcopal Meeting in Santo Domingo,
has a particular relevance: ¨There can be no market economy that is innovative and at the same time
socially just, without a solid commitment from the whole of society and all its players to solidarity
through a judicial framework that guarantees the value of the human person, honour, respect for life, just
distribution of the earth’s resources, and a real concern for the poorest.¨ (Santo Domingo, Conclusions
195.)
Respectfully,
OSCAR ANDRES CARDENAL RODRIGUEZ MARADIAGA, S.D.B.
Archbishop of the Archdiocese of Tegucigalpa, Honduras, Central America
Tegucigalpa, November 2006
32
MINING FOR JUSTICE
33
Latin American Water Tribunal Ruling
Latin America Water Tribunal – Public Hearing – Guadalajara, Mexico, 2007 www.tragua.com
UNOFFICIAL TRANSLATION
CASE: Misappropriation, irrational exploitation and contamination of superficial and underground waters attributed to the mining activity in the Siria Valley. Municipalities of San Ignacio,
Cedros and El Porvenir, Deparment of Francisco Morazán. Honduras
Claimant: Environmental Committee of Valle de Siria
Accused: Sociedad Minerales Entre Mares de Honduras S.A
FACTS
According to the claimants:
1.
In 1994 the company, Entre Mares Minerals set up in Tegucigalpa acquiring a concession in 1995
for mining exploration in San Martin in the Municipality of San Ignacio (Francisco Morazán). In
1998 the US company, Glamis Gold Ltd. Took over the Honduran company and Glamis Gold Ltd
was later taken over by Gold Corp, of Canada in 2006.
2. Construction work on the mine began on the 10th January 2000 despite the fact that the mining
concession was registered on the 8th of March 2000 and the environmental licence was granted
under a resolution passed on 9th march 2000. The application was made under the 1968 mining
code while the concession for exploration was granted on the basis of the 1998 Mining Law.
3. The concession was awarded for an area of 23,000 hectares in the Valle de Siria which falls under
the municipal jurisdictions of San Ignacio, El Porvenir and Cedros.
4. On the 25th of January 2000 The Environmental Committee of Valle de Siria filed a claim with the
Special Prosecutor for the Environment, for forestry offences, environmental damage and water
contamination. In October of 2000, on the basis of the observations of an cross-institutional research team, the Prosecutor requested a judicial investigation into the Mining Company Entre
Mares for Environmental and Forestry offences and misappropriation of water. The Judicial process has not yet been concluded.
5. In July 2000, 483 residents of El Porvenir, filed an appeal against the granting of the environmental licence by the Secretariat of Natural Resources and the Environment. (SERNA)
6. In May 2001, the UN Committee for Economic, Social and Cultural Rights recommended that the
State of Honduras apply current legislative and administrative measures in order to avoid the violation of environmental and labour laws by transnational companies.
7. In August 2001 SERNA gave Minerales Entre Mares permission to drill five new wells, despite
being aware of the critical state of community waters.
MINING FOR JUSTICE
34
Latin America Water Tribunal – Public Hearing – Guadalajara, Mexico, 2007 www.tragua.com
UNOFFICIAL TRANSLATION
8. Given the serious crisis of water supply in the communities, illegal sale of water took place throughout Valle de Siria. SERNA tried to regulate this by way of Resolution SG 083 2002 which prohibited
water extraction for industrial use. This resolution was waived in regard to the application of Minerales Entre Mares when the company agreed to supply water for domestic use in the communities of
San Ignacio, Barroza and El Padernal on the condition of having previously carried out a study of
community needs and company capacity.
9. Likewise, the Autonomous National Service of Aqueducts and Sewer Systems (SANAA) declared on
the 8th April 2002 that it was necessary to prohibit the exploitation of hydro resources for industrial
uses in the rivers Siale, Malaque and Playa until a study could be carried out on the effects of water
exploitation.
10. Following a new claim by the Committee of Valle de Siria in June 2002, the Prosecutor ordered a
temporary suspension of the company’s activities.
11. Since 2003 there have been a number of investigations and monitoring of surface water, sediments
and wells, some carried out jointly with the company and with other state organisms. The studies
have shown consistent contamination from heavy metals, especially arsenic and mercury and also
cyanide. On a number of occasions the levels have exceeded both US (USEPA) and WHO standards. There are also indicators of high levels of lead and arsenic in the blood of the some residents of Valle de Siria.
12. In 2004, the Prosecutor opened an investigation into water contamination.
13. In September 2006, the Ministry of Natural Resources and the Environment confirmed the contamination of Valle de Siria. On 25th July 2007 the Secretariate of Natural Resources and the Environment (SERNA) fined the Company, Entre Mares, One million lempiras for environmental contamination under the administrative resolution 30-R 2007.
14. On the 4th of October 2006, In view of a petition of unconstitutionality filed by various citizens and
organisations, the Supreme Court abolished 13 articles pertaining to the 1998 Mining Law on the
grounds of unconstitutionality, all of which are relevant to this case.
PROCEEDINGS
1. The Committee of Valle de Siria, given the lack of effective solutions to their various complaints,
went to the Latin American Water Tribunal (TLA)
2.
The TLA summoned Entre Mares S.A, who did not respond nor appear at the hearing.
CONSIDERATIONS
1. The universal recognition that the Human Right to water in adequate quantity and quality, is a fundamental Human Right to be exercised fully should be protected by the State (Tribunal, City of Mexico,
2006);
2. As a social right, the right to water should not be exercised to the detriment of those who are next to
the source considered in this lawsuit.
3. Serious social problems such as the crisis in water supply of Valle de Siria led to irregularities in the
initiation of the mining operation.
4. The repeated indulgence, negligence and omissions of the authorities ignoring administrative and
environmental regulations in reply to the numerous complaints of the affected communities.
MINING FOR JUSTICE
35
Latin America Water Tribunal – Public Hearing – Guadalajara, Mexico, 2007 www.tragua.com
UNOFFICIAL TRANSLATION
5. The abusive appropriation of local water resources by the mining company, seriously violating the
Rights of the communities of Valle de Siria.
6. The seriousness of the environmental contamination demonstrated (high levels of heavy metals and
cyanide in surface and subterranean waters) and its negative consequences for ecosystems and
human health.
In view of the facts and considerations previously outlined, the Jury of the Latin American Water Tribunal ..
RESOLVES TO:
1. Hold accountable and censure the Company Entre Mares Minerals for the inappropriate use of water resources and the pollution of the region, and for the damages and the risks to the ecosystems and
human health.
2. Censure the government authorities for the lack of commitment in the fulfillment of its duties and for
its contradictory actions detrimental to life, health and nature.
RECOMMENDATIONS:
1. Enforcement of clause 10 of the mining concession contract between the central government and
Entre Mares which means to suspend all mining activity because of grave damages to water, air, fauna,
flora and the community.
2. that the State of Honduras fulfills its international agreements with regard to human rights, including
the right to efficient justice, because none of the court cases have been concluded with a definitive sentence.
3. that an independent and participatory evaluation, financed by the company, is carried out to establish the degree of pollution of the water, the land and the human population, as well as an urgent epidemiological evaluation of the health of the population, and that of children in particular.
4. that the company should be forced to indemnify the communities for the damages they have suffered.
5. that Entre Mares, as a subsidiary of a Canadian multinational, applies the environmental and social
norms applicable in Canada.
Resolution taken unanimously on the eleventh day of October 2007
Dr. David Barkin
Lic. Patricia Díaz Romo
Dr. Alexandre Camanho de Assis
Dra. Catharina Wesseling
Dr. Luis Gabriel Torres Gonzales
Dr. Salvador Montenegro
Dr. Philippe Texier - President
MINING FOR JUSTICE
36
Open letter from the Siria Valley Environmentalist Committee to the
Government of Canada, November 2007
We extend our welcome to Alexa McDonough, Canadian Member of Parliament, thanking her for her interest in
learning in situ about the serious problems Canadian mining is causing in the communities of the Siria Valley, in
the department of Francisco Morazán, Honduras. With her visit, we take the opportunity to communicate our
position and demands to the Canadian government.
The Siria Valley Regional Environmental Committee has been struggling for more than seven years against the
Entre Mares mining company in Honduras, a subsidiary of the Canadian/US transnational corporation Goldcorp
[formerly Glamis Gold]. Over these past seven years, we have been denouncing the grave environmental, social,
economic and cultural impacts that the San Martin open pit gold mine has caused in our region.
Communities are suffering from a severe lack of water due to the vast quantity of this vital liquid used by the
company. This shortage has destroyed the local economy, previously based on agriculture and cattle ranching, in
turn provoking a massive exodus of youth to Canada and the United States.
There is evidence beyond a shred of doubt revealing the contamination of various water sources, including community wells, with heavy metals such as arsenic, lead, aluminum and mercury, provoking serious health problems. In comparison with years before the mining exploitation began, there has since been a dramatic rise in
dermatological and respiratory illnesses, hair loss, miscarriages and stillbirths.
To date, none of these problems has been resolved. To the contrary, we have seen the complete indifference of
Goldcorp, despite the fact that we have even taken our denouncements to the company’s annual shareholders
meetings.
We understand that both the government and the population of Canada invest in this company via the publicly
funded Canada Pension Plan. Furthermore, we see how certain Canadians have benefited from this disaster with
grotesque profits, such as the case of Goldcorp Board Chairman Ian Telfer, who earned some 23 million dollars
last year. It is an example of the development model promoted by the Canadian government, which is provoking
the chronicle of a death foretold through the sacrifice of the Siria Valley residents.
For all of the above, we hold you responsible for the harms that this transnational company from your company
continues to cause in our valley. Faced with the exit of the company from our region and also with the inadequate mine closure plan it proposes, our Committee demands that our proposals regarding the mine closure process be included and respected.
AT A MINIMUM, WE DEMAND:
We demand that our position be respected and that you take urgent action, given the clear responsibility of Canada for the problematic situation of the Siria Valley.
Design and Layout: Marlene Seiffarth
Compensation for the people whose health has been affected.
Clean water sources, free from all contaminants for all of the communities.
The reforestation of the area with species native to the region – the same species that were found here before the
mine.
That the lands are made once again apt for agriculture.
Land titles for the lands in Palo Ralo that are still without legal security.