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July 30, 2010 - No. 143
Global Resistance to Canadian Mining
• Canada-Wide
Demonstrations Mark Global Day of
Action Against Open-Pit Mining
Canadian Mining
• We Are Not a "Criminal NGO": We Are a
Sovereign Nation - Desarollo Socio-Economic Association
(ADES)
• Government Intervenes in Congo
Mining
Dispute
• Goldgroup's Plunder of Mexico
Canada-Wide Demonstrations Mark
Global Day of Action Against Open-Pit Mining
July 22 was the second annual Global Day of Action
Against Open-Pit Mining. Actions were held in several cities across
Canada to denounce this destructive method of mining and the major role
of Canadian mining firms in destroying the natural and social
environments around the world. Marches were also
organized outside embassies and Canadian consular offices in many
countries of the Americas. These actions were aimed at pressuring the
Canadian government to take action against the Canadian companies
involved in
this nation-wrecking.
The operations of large
mining companies in Latin America, of
which 60 percent are Canadian, have drastic consequences there as well
as worldwide. Under the pretext of contributing to the
progress of poor countries through their investment, mining companies
give themselves the right to
violate international and national environmental laws. Through the
corruption of local and national authorities, they infiltrate
communities and impose their projects. Mining companies
are also masters at sowing division within communities and sponsoring
repression against any opposition. Through
free trade agreements they blackmail governments by threatening to sue
them for hundreds of millions of dollars if they do not come on side
against the interests of the people.
Montreal, July 22, 2010 Open-pit mining is
responsible for the contamination of
water and land through the use of highly toxic chemical products such
as cyanide. It causes the spread of deadly respiratory disease such as
tuberculosis. This activity also transforms rich landscapes of flora
and fauna into lifeless moonscapes.
 Accordingly, the route
adopted by the Montreal protest
encompassed the consulates of Peru, Colombia, Chile, Argentina, Mexico,
Venezuela and Guatemala where not only are communities being affected
by severe environmental damage but also repression of anti-mining
activists including assassinations where mining firms are allowed by
governments to carry out their crimes with impunity.
Demonstrators presented letters to each of the consuls, requesting
action be taken to end these abuses. A stop was also made outside the
offices of Niocan, which has undertaken a mining project in the
Aboriginal community of Kanesatake.
Various human rights, environmental and other
organizations participated, with people holding placards in
commemoration of activists who have been assassinated and depicting the
adverse effects on life worldwide as a result of the open-pit mining.
The protest ended outside the Montreal office of the
Toronto Stock Exchange (TSX), to denounce the means through which
mining companies reap millions of dollars in profits through stock
speculation.
In Toronto the demonstration also visited a number of
consulates as well as the Toronto Stock Exchange during the afternoon,
to protest what was described as the most brutal form of mineral
exploitation. They addressed passers-by dressed as "corporate zombies,"
pointing out the single-minded profit
motive of Canadian firms such as Goldcorp, which destroys the
environment and is accused of killing people in Guatemala and other
places. One
activist told the crowd that Goldcorp in Guatemala
was ordered by the UN Human Rights Council and the Guatemalan
government to close down. The company
responded that "you can't just come here with a bunch of soldiers to
shut down a mine" conveniently omitting that this is precisely how the
company opened up the mine in the first place despite the people's
objections.
In its press release the Committee for Human Rights in
Latin America wrote that "the aim of this action is to recall Canada's
role and its close ties through grants, diplomatic and consular
support, investments in the Canada Pension Plan, tax benefits, etc.,
with this industry heavily tainted by scandals."
Demonstrations were also held in Ottawa and Vancouver.
We Are Not a "Criminal NGO":
We Are a Sovereign Nation
- Desarollo Socio-Economic Association
(ADES), July 8, 2010 -
Response to testimony
of Pacific Rim CEO to Canadian Parliament
Once again, the president
of Pacific Rim has offended
and threatened the sovereignty of El Salvador by trying to hide and
discredit the national opposition to its mining practices. His
arrogance prevents him from accepting that in El
Salvador there is sufficient intelligence and
understanding to know what is and is not advisable for the development
of our country and people.
On June 8th, before the Canadian Parliament, the
president of the Pacific Rim mining company, Tom Shrake, attacked the
Desarollo Socio-Economic Association (ADES),
calling it a "criminal NGO with a long and worrisome history of
violence against the company [Pacific Rim]." He also stated that some
"rogue NGOs use their defense of the
environment as a tool to increase the political cost of mining
decisions."
Mr. Shrake forgets that the opposition to metal mining
is not a question for "certain criminal NGOs," but instead for the
whole nation. Broad and diverse sectors and groups have rejected
mining: the Salvadoran population (residents of the country and
expatriates), civil society organizations, health guilds,
universities, the Catholic and Protestant churches, representatives
from the primary parties of the right (ARENA) and the left (FMLN), the
scientific community, and most importantly, the legitimate and
sovereign Government of El Salvador, with their decision to deny
[exploitation] permits.
Contrary to Mr. Shrake's statements, ADES is a community
organization recognized at the national and international level for its
work in defense of human rights. ADES rejects violence in all its
forms, it promotes scientific investigation and information and an
informed dialogue.
On the other hand, the abuses committed by Pacific Rim
in El Salvador have impacted international public opinion. As the
Canadian Member of Parliament John McKay stated, Pacific Rim has caused
"extraordinary injury to it's reputation, the industry and, I would
dare to say, the reputation of Canada."
In his testimony before the Canadian Parliament, Mr.
Shrake offered various explanations and arguments that, according to
various experts on the subject, are rather questionable. Below, we
discuss several of these arguments.
A) Mr. Shrake claims that his "strategy is to explore
and develop a certain type of gold deposit called low-sulfidation
epithermal gold deposits," that is, alkaline deposits. He claims that
El Dorado is one of those deposits. However, the geological study taken
from
the veins of El Dorado shows that its composition
includes more than 40 chemical elements, including mercury, lead,
arsenic, cadmium, etc.
Experts on the subject point out the imminent risk that
acid drainage [a mine] would produce. This worries Mr. Shrake, who
comes to the
defense of his project by trying to argue that there will not be acid
drainage from the mines because the deposits are low-sulfidation.
Even accepting Mr. Shrake's previous arguments as true,
he knows very well that in order to capture the silver and gold
particles from the mine, it is necessary to grind the rock and apply
cyanide, but this cannot be done without allowing some heavy metals to
escape into the environment. He must
explain himself. How do you plan to resolve this question, Mr. Shrake?
You have not spoken about it at all. Are you an expert in your trade or
have you hidden key information from the authorities and the citizens
of El Salvador in order to protect the interests of your company?
B) Later on in his testimony, Mr. Shrake refers to the
events in Santa Rita, the name with which he identifies the mining
district in the community of La Trinidad. He separates the company from
the problems suffered by the population there. Nevertheless, we
remember, Mr. Shrake, that the conflict
began because your employees used force to enter private property,
without the consent of the legitimate owners. This act of aggression
almost caused the death of an elderly landowner, a woman more than
sixty
years old who suffered a cerebral hemorrhage after arguing with his
technicians. The company ought to have
compensated the victim, but it didn't; instead it launched a litany of
demands against the family. If your employees behave like Mahatma
Gandhi, as you say, such cruel and unfortunate things would never
happen, Mr. Shrake. What ethics do you speak of?
C) The president of Pacific Rim says that they have
"been victims of a planned strategy of misinformation and
intimidation"; your words, Mr. Shrake, are a clear accusation that
seeks to penalize an organization whose only interest is the defense of
the Salvadoran population's human rights, offering
scientific information and promoting an informed dialogue.
What is evident from Mr. Shrake's testimony is his use
of violent language and a clear misrepresentation of the facts, so that
he may avoid assuming responsibility for the injury that has been done
to the defenseless population of the department of Cabañas, in
this way justifying the old joke of the
executioners presenting themselves before the national and
international community as victims.
We are not a "criminal NGO," we are the voice of the
people, with dignity and a clear sense of self-determination, Mr.
Shrake, but above all, remember that we are a people, we are a
sovereign nation.
Sesuntepueque, July 8, 2010
Asociación de Desarrollo Económico Social
- ADES
http://adessantamarta.codigosur.net/
Government Intervenes in Congo Mining Dispute
TML is posting below an item by Brenda Bouw
entitled "Canada to Congo: Play Fair with Miners," from the Globe
and Mail which describes Canada's intervention in the Democratic
Republic of the Congo's sovereign control over its natural resources in
favour of Canadian mining firm
Quantum Minerals Ltd.
Canada to Congo: Play Fair
with Miners
- Brenda Bouw,
Globe and Mail, June 30, 2010 -
Canada is holding up a plan to write off billions of
debt issued by the Democratic Republic of the Congo amid a dispute
between a Canadian miner and the Congolese government.
The Canadian government has waded into a conflict over a
mining property held by Vancouver-based First Quantum Minerals Ltd.,
voicing concern about the Congo's treatment of the company in recent
months.
A Congo court recently annulled mining rights for First
Quantum's Frontier and Lonshi mines, ruling they were awarded illegally
and should revert to state-owned Sodimico.
First Quantum, which has been operating in Congo since
2000, has said the ruling was in retaliation for its decision to go to
international arbitration over Congo's decision to stop construction of
its Kolwezi copper-and-cobalt project last fall.
Congo had hoped a World Bank decision on whether to
relieve about $8-billion in debt would come before its 50th
independence jubilee on Wednesday. But Canada asked for a delay on the
decision earlier this week, according to sources familiar with the
matter.
The dispute between First Quantum and the Congolese
government highlights the risks miners increasingly face as they delve
into the deeper corners of the world to find mineral resources.
Miners that operate in Africa in particular are
considered more volatile for investors, who are often required to
factor in what's known as the "Africa discount" on the company's share
price.
Canada's role in delaying the debt decision may be to
send a message to countries that any moves to nationalize assets held
by Canadian companies would face consequences.
"We will continue to work with our international
partners to ensure Canadian investment in the DRC is protected, while
empowering those within the country as they work towards peace and
sustainable economic development," a spokesman for Finance Minister Jim
Flaherty told Reuters.
The World Bank is scheduled to discuss Congo's debt at
its board meeting on [July 1]. If the debt relief does come, it will
cut Congo's annual debt service burden to $194-million from
$920-million.
Canada weighed in on the Congo issue "due to ongoing
concerns related to governance, rule of law, and preoccupations about
what these realities mean for sustainability of the debt relief
program," said a Canadian official who requested anonymity.
First Quantum has declined requests for comment.
Though most mining companies operate abroad largely
without ownership disputes, some have suffered through protracted
battles.
Toronto miner Crystallex International Corp. struggled
for years to get approvals from the Venezuelan government to develop
the Las Cristinas gold project in that country, amid reports the
government has taken over the development.
Last month, Crystallex said it would cede majority
control over the project to a subsidiary of China Railway Engineering
Corp., one of the world's largest companies with multibillion-dollar
connections to Venezuela in the oil business.
There have also been reports that the Pakistan
government is pursuing plans to cancel a licence for the Reko Diq
gold-copper project in the country, now held by Toronto-based Barrick
Gold Corp. and Chilean partner Antofagasta, and to develop the mine
itself. Barrick has said it is unaware of such
a move by the government in Pakistan.
Goldgroup's Plunder of Mexico
According to a July 13 article in The Northern Miner,
Canadian
mining
company
Goldgroup
is
in
the midst of a flurry of deals
to buy and sell Mexican mining sites rich in gold deposits. With its
single-minded aim of acquiring the richest gold fields, Goldgroup is
shamelessly grabbing whatever it
can as if Mexican territory and the wealth it contains is its private
property. Its only concern is to get its hands on the richest gold
fields to make a quick score
speculating on the international gold market. The article below is a
good
example of how Goldgroup and other foreign
mining firms, especially those from Canada, are carrying out this
speculation based on exploitation of the national heritage of the
Mexican people.
Goldgroup Mining Sells El
Porvenir Mine
- The Northern
Miner, July 13, 2010 -
Goldgroup Mining (GGA-T) has sold its El Porvenir gold
project in Mexico for US$25 million to the mining division of Latin
American conglomerate Grupo Carso.
The sale comes a little over three years after Goldgroup
bought the property from Goldcorp (G-T, GG-N) for US$3 million. As part
of the sale to Carso subsidiary The Frisco Group, Goldgroup paid a
third party US$1.7 million for a 3% royalty it on the property.
"It didn't fit our strategic plans for going forth in
the future," said Keith Piggott, chief executive of Goldgroup in a
phone interview. "We're focused on developing properties with high
exploration potential...we're a production company focused on near-term
production."
Last August Goldgroup released a technical report on the
project that outlined a global resource of 14.8 million indicated
tonnes grading 0.62 grams gold per tonne and 18.8 grams silver per
tonne
and 485,000 inferred tonnes grading 0.41 grams gold and 11.9 grams
silver, both using a cutoff of 0.2 grams
per tonne.
The company sold the mine as an alternative to a
$20-million equity financing it had planned to fund exploration at its
other Mexican projects including Caballo Blanco and San José de
Gracia,
where Piggott sees more room for growth.
"Although El Porvenir was a nice property, it didn't
have the same sort of upside potential," said Piggott. "We thought that
in this current market it would be a good idea to do some non- dilutive
financing."
Goldgroup Mining only formed in April through a
combination of Sierra Minerals and then privately-held Goldgroup
Resources. The company will now channel efforts towards its flagship
Caballo Blanco in the state of Veracruz and the San José de
Gracia
project in the state of Sinaloa, while also upgrading
its producing Cerro Colorado open-pit gold mine.
At Caballo Blanco the company plans to put two drills
into operation as well as drive a tunnel to better define the structure
and do bulk metallurgical sampling. The 197-sq.-km property hosts
multiple high-sulphidation epithermal gold targets.
The company bought the right to earn a 70% interest in
the property from Lundin-subsidiary NGEx Resources (NGQ-T) for US$15
million made up of US$6 million in cash and 9 million shares. Goldgroup
needs to spend US$3 million more to fully earn the 70% interest while
Almaden Minerals (AMM-T)
controls the rest.
At San José, Goldgroup recently pulled some good
intercepts with a single drill rig and plans to add another by
September. The company has spent roughly US$12 million of the US$18
million needed to earn a 50% interest in the project.
The company recently installed a new crusher at its
Cerro Colorado mine in Sonora, Mexico and expects to produce roughly
25,000 oz. gold at the site this year.
Goldgroup's share price closed down 3¢ on 1.9
million trades to close at 62¢ on the day of the news. The company
has 85 million shares outstanding.
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Website: www.cpcml.ca
Email: editor@cpcml.ca
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