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Mining Gold, and Outrage, in Guatemala
Vancouver-registered firm pushes big project.
Rolando Lopez Crisostomo is a long way from his village in the Western Highlands of Guatemala. Sipping coffee in a cramped kitchen in East Vancouver, he explains the purpose of his journey - to let us know that a Canadian company is digging an unwanted open-pit mine on Mayan land.
In a conflict that has claimed two lives and pitted indigenous communities against the Canadian and Guatemalan governments and mining interests, Crisostomo's people seem destined to lose.
Despite what he claimed was almost unanimous local opposition, the Marlin gold mine, which is owned by Vancouver-registered Glamis Gold, will start full production this month.
Glamis Executive Vice President Chuck Jeannes said the mine has the backing of the Guatemalan government as well as indigenous communities in the area.
The World Bank-supported project is being promoted as a necessary step for economic development in the region. Mayan communities, many of which live in grinding poverty, have been offered jobs, schools and help with local business ventures, among other benefits.
"The responsible extraction of mineral resources is one of the few ways that local indigenous people can hope to break the cycle of poverty," according to the Bank.
Crisostomo said they don't believe the promises, and they don't want to face the environmental devastation.
"The indigenous communities have clearly stated that they reject mining companies in Guatemala, particularly open-pit mines," added Crisostomo.
Not enough consultation
He said indigenous Guatemalans, which account for over half the population, simply do not trust that the mining companies and the government will keep their promises of putting some of the huge wealth to be generated by the mine into communities.
The Mayans have already been betrayed, according to Crisostomo. Under the 1996 peace accords, which Canada helped broker, indigenous communities must be properly consulted and agree with any resource extraction.
That hasn't happened, he claimed.
"The government allowed the mine in without following the proper authorization procedure," said Crisostomo.
A 'misunderstanding'
An internal audit ordered by the International Finance Corporation, an investment arm of the World Bank that contributed $53 million to the project, "found a genuine difference in understanding amongst the parties about the purpose of consultation with and disclosures to local people."
The report said that, while project officials thought it was enough to inform communities of their plans, the communities felt it was ultimately their decision. "The government of Guatemala has not been able to provide effective guidance about this issue," the report noted.
Jeannes said Glamis went to great lengths to inform people in the region about the mine. But neither the company nor the Guatemalan government felt it necessary to obtain full consent from local communities. Such a system would undermine federal law, he said.
"If you take it to its logical conclusion, it's anarchy," added Jeannes.
In response to what they saw as an inadequate consultation process, local communities organized their own polls. In the district around the town of Sipacapa, 11 of 13 communities voted against the mine (one voted in favour, one abstained). A ballot referendum was also held in Sipacapa in June, with 98 percent of the voters rejecting the mine.
Glamis called the referendum "corrupt" and noted that the mine is located closer to San Miguel Ixtahuacan than neighbouring Sipacapa. The company issued a release claiming, "in a fair election, a majority of the residents of both Sipicapa and San Miguel Ixtahuacan would support its activities."
Jeannes admitted there is less support for a mine in Sipicapa, but said the company's own polling data shows "the majority of the people in the vicinity of the mine are very supportive of it, because they're seeing the benefits of it."
He refused to disclose the numbers or the method of measuring support.
Guatemala's leading newspaper, Prensa Libre, printed the results of a survey last November that found almost 96 percent of the respondents in the region were against the project.
All that glitters…
Guatemala isn't the only country where gold mining is facing controversy.
In Peru, mining accounted for over $8 billion in foreign sales in 2004, but surrounding communities remain impoverished. Anti-mining protests have become common in recent years. In 2003, protesters forced the Canadian company, Manhattan Minerals, to abandon its $374 million gold and copper project. Other projects have since been shut down.
According to Reuters news service, Peru's Energy and Mines Minister Glodomiro Sanchez admitted, "The state has failed to channel its resources properly and people have a right to feel aggrieved."
Last month, another Canadian company, Placer Dome, was sued by a province in the Philippines for allegedly destroying an entire coastal ecosystem and dumping massive amounts of toxic waste.
Crisostomo said Guatemalans have learned from the experiences of other countries.
"We've exchanged information with people in Honduras where Glamis made promises and didn't fulfill them," Crisostomo said. "In other countries like Bolivia and Peru, companies made promises and didn't keep them."
Mining companies are also under attack in richer nations.
Activist groups such as Earthworks, which staged a protest march down New York's Fifth Avenue, have been attempting to mobilize consumer pressure against the troubled industry.
All this comes at a time of rising demand and record prices. The price of gold recently hit a 17-year high of almost $600 per ounce, partly fueled by record world jewelry sales, according to an extensive New York Times report on the global mining industry.
Gold mining's silver lining
The World Bank and mining companies claim they are bringing desperately needed economic development to poor countries like Guatemala.
Glamis says it has already put millions into community development projects, and plans to contribute $4.75 million more over the next decade. The money will go toward improving health and education (Glamis is already paying 35 teachers' salaries, according to Jeannes), among numerous other goals. The company estimates the mine will contribute almost $600 million to the Guatemalan economy.
Jeannes blames resistance to the mine on "misinformation" put out by "the more radical environmental organizations who simply do not approve of mining as an appropriate activity anywhere."
He cited Oxfam as an example of such a group.
"They've come in and made statements about how we're going to pollute the water and leave a big mess and put chemicals in the countryside, and that's just not the way the modern mining business works," he said.
Industry watchdogs share Crisostomo's skepticism about promises made by mining companies.
"Detailed economic studies have been done in places like Peru and Ghana where there's a lot of mining activity and a lot of Canadian investment," said Jamie Kneen of Mining Watch Canada. "Mining creates poverty where it's installed. It creates wealth in Toronto, it may create some wealth in the local elite, but the net effect in the region is going to be negative."
"The industry keeps saying, 'That's all in the past and we're doing things properly now.' But frankly, it isn't," he added.
The Canadian connection
Glamis Gold's corporate office is located in Reno, Nevada, but the company is registered in Vancouver and listed on the Toronto Stock Exchange.
The Marlin mine is strongly supported by the Canadian Embassy, which has sponsored public forums and flown Guatemalan indigenous leaders to Vancouver, as well as neighbouring Honduras, where Glamis also has operations (the strategy may have backfired - Kneen said some of the Guatemalans were "horrified" by what they saw in Honduras). The ambassador has even engaged in televised debates.
"The Canadian Ambassador was up to his wazoo basically promoting the company and promoting mining," said Kneen.
In a November 2004 Prensa Libre op-ed, Ambassador James Lambert pointed out that mining companies are currently operating in 200 indigenous communities in Canada.
"These communities are creating the economic, cultural and social infrastructure necessary to secure their future and the future of their children," Lambert wrote.
Foreign Affairs spokesperson Andrew Hannan confirmed that the Embassy flew Jerry Asp, Chief of the Tahltan Band Council, to Guatemala last December.
Asp was brought down "to inform indigenous Guatemalans about the various issues to be considered when exploring the option of natural resources development for economic development."
One month later, Tahltan elders occupied their Telegraph Creek band office, in northern BC, to protest proposed mining and coal methane gas extraction in their traditional territories. Asp facilitated the deal with the province to open the area to resource extraction, but the elders said he did not represent them, because he won an election in which only 400 voters participated.
'An environment of fear'
Crisostomo recalled Asp talking to Guatemalans about "how happy Canadian indigenous groups are with mining." But he was not surprised to hear about the trouble in Telegraph Creek.
He wonders about the effect of the mine on the social fabric of his own community. People have received death threats, he said, and he worries that more people could die because of their opposition to the mine.
In January, after a 40-day blockade, the Guatemalan government sent riot police to secure the way for trucks carrying equipment to the mine site. One person was shot dead and about a dozen people were injured.
In a separate incident during the same month, a farmer was shot and killed by a security guard hired to protect the mine. Glamis says the shooting was the result of a personal dispute.
Already, Crisostomo said, the mine has brought "an environment of fear" to the Western Highlands.
Jared Ferrie is a Vancouver journalist. ![]()



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jesterjogger
6 years ago
Comments on "Mining Gold, and Outrage, in Guatemala"
Viva Morales! Viva Castro! Viva Chavez!
The day will soon come when greedy companies like this and the corrupt governments that support them will be swept aside.
What a disgrace!
Mr. J probably sleeps peacefully in his west-van mansion each night as indigenous people are hauled away by government death-squads.
"Ye shall reep what ye sow"
BC Mary
6 years ago
Exactly. What jesterjogger said. Damn it all, anyway.
Martin
6 years ago
Land use disputes will continue to increase as the price of gold rises. That's because these disputes are always about the same thing: money. They might wrap themselves in the flag of other causes, but in reality, it's about money and who wants a piece of the pie.
allan
6 years ago
Don't you just love the bull shit out of the World Bank that mineral exploitation "breaks the cycle of poverty."
On a local note, could anyone tell me why after more than a century of full on resource exploitation in BC, a majority of it's indigenous people still live at third world poverty levels?
Jesterjogger and BC Mary have it right.
jesterjogger
6 years ago
They Call It Democracy - Bruce Coburn
"Padded with power here they come
International loan sharks backed by guns
Of market hungry military profiteers
Whose word is a swamp and whose brow is smeared,
With the blood of the poor.
Who rob life of its quality
Who render rage a necessity
By turning countries into labour camps
Modern slavers in drag as champions of freedom
Sinister cynical instrument
Who makes the gun into a sacrament
The only response to the deification
Of tyranny by so-called "developed" nations'
Idolatry of ideology
North, south, east, west
Kill the best and buy the rest
It's just spend a buck to make a buck
You don't really give a flying ****
About the people in misery.
IMF dirty MF
Takes away everything it can get
Always making certain that there's one thing left
Keep them on the hook with insupportable debt.
I see the paid-off local bottom feeders
Passing themselves off as leaders
Kiss the ladies, shake hands with the fellows
And it's open for business like a cheap bordello
And they call it democracy
You see the loaded eyes of the children too
Trying to make the best of it the way kids do
One day you're going to rise from your habitual feast
To find yourself staring down the throat of the beast
They call the revolution."
barrioabajo
6 years ago
Today the online main topic in "La Prensa Libre" (from Guatemala)is the that the same World Bank affirms that under the table monetary deals is a common ocurrence among the government, private companies,and members of the elite to give green light to any kind of project that means money for a few and disgrace for poor people. If there is gold there, it is amazing the way that corporations and even "la burocracia dorada" of the World Bank do the PR trying to convince us that poor people are going to be better off with this kind of deals. The only way for guatemalan people is to get organized at the grassroots level (like in that wonderful place of Sipacapa, San Marcos)and really become a stakeholder with a direct, decisive, and militant voice in the future use of their land.
Working Man
6 years ago
I have some news for my leftie friends; if you do not allow rescource development here, it will happen in a third world country where the ruling elite does not give a shit about either the enviroment or their own people. You can be sure of this.
Why? Because all of us reading and posting here are consumers of said rescources. They have to come from somewhere.
allan
6 years ago
barrioabajo, do you see the mindset of my friend Working Man, above?
That is the mentality all people of the lands must overcome, must resist completely.
Solidarity my friend. We are not all consumers in Canada even though our ugly side is certainly rearing it's head right now both above and in the company seeking to exploit your lands.
The land belongs to the Guatemalan people. Resist. Demand gurantees of employment and royalties as the very least.
Ignore crude threats such as those above.
Working Man
6 years ago
Really? Do you consume water, air food? Do you consume electricity (that you used to write your post), glass, metal and plastic that made the computer you wrote it on? Did you know that there is gold in the mainboard?
Did you ride a bus, powered by oil and containing a myrid of metals and plastics today?
What about your residence? Does it contain any consumables? How about those wood walls? Where did they come from? The glass windows and metal sashes? Did Santa Claus bring me? Did Scotty use the transporter to make them?
We all consume, buddy. Anyone why says they don't is a hypocrite. You know nothing about the third world since you have never been there.
Working Man
6 years ago
And allan, you completely missed my point. Read my fist post; It is better that we exploit our own rescources in an environmentally friendly way than to block development in our own back yard. Why? Because there is a demand for consumables. You and I use them every day. If we don't mine here in Canada the mining will be done at a huge environmental and social cost in third world cesspits where the ruling elite could not care less about the welfare of the people living there.
allan
6 years ago
Careful, my friend, the third world is but a poor first nations reserve away.
Yes, I consume, I have a right to consume, especially in a nation that has massive surpluses from natural resources as Canada does.
Perhaps are you from the school that thinks marginal royalties and eventual responsibility for environmental nightmares created in the process, is sufficient compensation for the exploitation of lands and labour. I don't.
BTW, I've got a great big chissle and some granite so I figure I'm in writing material for eons, but thank you for asking.
Now, as far my consumer habits are concerned, let me clarify. Yes, I drink water just like my first recognizable ancestor also did without asking for anyone's permission.
Yes I breath air (freely), but with increasing concern over its content, and yes, I have my own vegetable garden.
Toilet paper and a ....load full of other dull, but sorta needy things are pretty high on the agenda also, especially if your a couple.
But why shouldn't the people who live in the region of Guatemala where the proposed mine is located not have more say?
We demand no less as citizens in British Columbian. Where is the balance here or are you unable to get past the simple "economics" of it?
allan
6 years ago
WM, just saw your last posting, but I'm not impressed. It's basically an acknowledgement and nothing else, of the conditions faced by natives and others in much of the world when royalties and other government agreements are worked out.
Better to fight exploitation everywhere than to try to reap short term gains by allowing your fellow workers to be scewed, no matter where he or she lives, in my eyes.
Maybe we need the system that moves fair trade coffee into Canada to expand to include all consumer products.
It might require the employment of compliance overseers, but it could effectively stamp out the sweat shop and many other unnecessary and unwanted entities.
Think of it. Consumers in control with "compliance overseers" ( I love it) offering strong hints about the need for decent wages and benefits so society doesn't subsidize the operations.
Come to think of it, the police could easily assume theresponsibility of offering real protection to consumers and retailers at the same time.
Sorry, I'm off topic and of need to refill my wine glass.
lane
6 years ago
Great to see this story come out in the town where Glamis flies its flag of convenience. Jamie Kneen does a fantastic job at miningwatch, serving as a resource for all mining issues at home and abroad. Also, Friends of the Earth Canada has a program monitoring Canadian mining practices in Guatemala.
Working Man
6 years ago
dream on, allan. how old are you anyway?
Working Man
6 years ago
And allan, I suppose you can be one of the overseers, right. All very idealistic and non-sensical.
I do note that, despite your denials, you are consuming, namely alcohol. Would it not be better to deny the fascist lacky western imperialist governments the tax revenue you supplied them when you bought it and directly fund class struggle?
Furhter, would not those grapes have not been better used as a food scource?
Fiat lux
6 years ago
We're not consuming anything, only convert resources into other forms and pollution.
The word "consumer" is a propaganda buzzword to divert attention from physical realities and give people a false sense of well being in the race to the bottom.
If the human race wants to survive, it has to develop economic systems that will still give ALL people good standards of life, but cut back on the huge waste going on today in the name of "globalized wealth creation", that fills the pockets of a few and destroys lives and the environment.
Does the world need more gold for real human needs and purposes?
Ed Deak, Big Lake.
Colin
6 years ago
Well I had the opportunity to work briefly with my brother on a mining exploration job in Venezuela in 94. The worst mining practices were being done by the locals using Hydraulic mining techniques and mercury extraction methods. Both were technically illegal, but it was government employee that were supplying most of the equipment to the illegal miners. I remember talking to the local mechanic, I pointed out that perhaps dumping the oil from the generators into the dirt near the camps drinking water supply was not the best idea. He shrugged and said it was to much work to get rid of it properly. A lot of the problems down there are homegrown.
The Canadian companies were the only ones following the various laws, as it was cheaper to do so than suffer a “visit†from the local police chief. Also got to work with the locals fairly closely. These guys would show up to work in the jungle in bedroom slippers. My brother asked for 10 workers, 20 showed up, he ended up hiring them all. I will give credit to these guys, they worked hard and were happy to have a job. When we went to visit his crew chief, he was with his kids, busy fixing up their one room schoolhouse the miners had built. They were so proud of it and showed us the school. We ended up giving them some supplies for it.
Gold there was easy to find and it was what the poor used for tooth fillings.
Properly done, mining and forestry can help the local communities, improperly done it can be a curse.
Ed, gold is very important to most people in the third world, even the jewellery serves multiple purposes and as a mobile cash reserve for hard times.
skeptikool
6 years ago
Perhaps someone will correct me but, I recall reading of similar exploitation by a Canadian mining company that had operations in Jamaica and departed leaving an awful moonscape of a mess. Was it Bauxite? Anyhow, something to do with aluminum.
Reportedly, as I recall, the Jamaicans (other than the deal-makers) got little, if anything, from the mine's presence except an awful mess to repair.
Colin
6 years ago
You are correct, there was a company mining Bautix (spelling?) a component used in the production of aluminium, so it is likely a subsidiary of Alcan.
I know my parents went there in the 70’s and it was one of the few places where Canadian’s where hated, because of the mine.
Fiat lux
6 years ago
There's a Canadian gold mining compan operating in the Transylvanian, former Hungarian part of Romania. I'm enclosing an article on their activities. Now they want to destroy a thousand year old town to ghet the gold out from under. With Romanian government approval, or course.
Ed Deak.
===========================================
Subject: The real price of gold
Just such a leak in Romania in 2000 led to the worst environmental disaster in the region since the meltdown of the nuclear reactor at Chernobyl. Tons of cyanide-laced water broke through a dam and poured into the Tisza and Danube rivers from the Aural gold mine near Baia Mare. The results were devastating; more than 1,000 tons of fish were killed, while plantlife and birds along the river were devastated.
The Tisza disaster has been replicated at mines all over the world. In the five years since the Baia Mare accident, mines owned by international corporations have been responsible for spills in Ghana, Western Australia, Papua New Guinea, China, Honduras and Nicaragua. During that time the UN Environment Programme has been locked in negotiations with the mining industry to produce a self-regulatory code.
October 26, 2005
The real price of gold
The lust for gold has reached record levels worldwide.But the world's remaining gold deposits are microscopic and the environmental costs of extracting them are profound.
http://news.independent.co.uk/environment/article322 **********************************************
allan
6 years ago
You seem a bit worked up Working Man.
It seems when anyone even hints of stepping outside the box you call your understanding of how life ought to proceed, you start getting a bit anal and turn to insults.
Just to clarify a point. Wine has been seen as a food or nutrient source for eons.
There never really was a need for government taxes until the capitalists began manipulating what had been simple and fair exchanges of goods and services.
I just wish you would be clearer yourself and instead of repeatedly referring to consumers consuming as proof we have all been corrupted by the lure of a greenback, you would admit you mean profiteers profiting.
You are peering out at the world through the wrong end of the looking glass, I'm afraid.
Colin
6 years ago
Allan
The desire of governments to impose taxes goes as far back as written history as does attempts by people to evade them. I was surprised when reading about sailing ship design how much the avoidance of paying tonnage taxes influenced ship building in the 16th century.
I assume you don’t mean that we move back to a subsistence level again.
allan
6 years ago
Well actually Colin, I'm certainly not recommending that, but as my winter melts away up here in the hurtlands, I do wonder at times if we are going to be capable of not moving back to a subsistance level.
And when you put it in that context, look around and I think you'll notice much of the world has yet to rise above that level yet and others are being bombed back into it.
So "again" may be over stating the issue for many.
Colin
6 years ago
I will certainly concede that many people are living at that level. I know I certainly am in no hurry to live at that level and you are right, most people would not be able to make the shift. I meet people here in the city who have never really made the connection between the meat on their table and the cattle on the ranges. One waitress didn’t even know that Bacon came from pigs, sigh…..
This is why I intend to send my daughter up to my cousin ranches to help out when she is old enough so she can see how the food chain works (actually right near Ed’s place, small world eh?)
You are also right that the bombing by the Sudanese military has driven most of the people in the Darfur region from the poor to the absolute destitute level. To bad the world doesn’t really give a damm about them. Now they are worried about the “Lord’s Resistance Army†going after the refuges and aidworkers. The LRA is one real bad bunch.
vera gottlieb
6 years ago
Google "Pascua-Lame" or Lami - and you will see another Canadian company (Barrick Gold) starting to wreac havoc in northern Chile, on the border with Argentina. Between greed and corruption...And then our attitude: what do those uneducated peasants know anyhow. Just promise them anything and then give them the finger. And we Northerners can't understand when the Southerners don't like us gringos? The rape of Latin America started with the arrival of Columbus - and it hasn't stopped yet.
allan
6 years ago
Good plan for your young one Colin, but even planting a garden and getting the kids involved in at least eating the produce can be an amazing experience for some, as common place as you or I might relegate it to.
Maybe your daughter could also get some part time work over at Ed's place as he seems filled with the type if curiosity and wisdom required to pass on some secrets about organic farming and staying young.
Vera, thank you and you can rest assured they aren't celebrating the 'Year of the Gringo' in South American right now.
Fiat lux
6 years ago
Colin's daughter is most welcome, as we know where she would be staying. Good, hard working people.
Don't tell anyone, but the brain behind our organic garden etc, is my wife. I'm just the unpaid hired hand who does what she tells me to do. Which could also be a good lesson for a young girl.
Ed .
Colin
6 years ago
My friend’s daughter grew some peas in her flower box and was “selling†them to us for 25 cents a pod. She was horrified when I popped the pod open and ate the peas. She hadn’t connected the peas she was growing with the ones in the store. Plus she wanted me to give them back so she could “sell†them to someone else. She learned a couple of lessons that day, but the look on her face was priceless.
A Merry Christmas to you and happiness to your families.
Ed, you are right about the hard work part, they never cease to amaze me with what they do and how they do it.
kent
6 years ago
I grew up in a time when we were virtually self sufficient - we had to be, total income in 1931 was $200. We may see those days again as we continue to destroy our own environment.
We seem to have lost Ron Erwin and picked up Working Man. A fair trade I suppose.
Ken McKee, Salmon Arm. Hi Vera! I have one of your buttons but it got in the wash by mistake and the colour ran.
Mooney
6 years ago
My heart goes out to the Mayan people, but I wonder what they can accomplish by coming to B.C.
I live in the Gulf Islands, supposedly protected by the Islands Trust and have seen people sold property in residential neighborhoods and then the party that sold it to them without any pre disclosing his intent or divulging any existing permits, starts mining and processing gravel right next door. Making their very expensive properties worthless.
This occurs with the blessing of our provincial gov't right while the Islands Trust and CRD vigilantly looks the other way and does not enoforce existing soil removal bylaws.
Colin made the good point that "properly done, mining and forestry can help the local communitys".
These activities are not being properly done in the much lauded Preserve and Protect Areas of the Islands Trust of British Columbia. I wonder where, if anyplace, they are.
BC Dude
6 years ago
We've tryied to block many, many types of injustise's in this world and the only conclusion I come to is to stop our need to buy, Consumerisium is the only way these Corporations survive.
Who says we have buy cards birthday, Valentine, Christmas gifts, St. Patrick's, gifts & on & on etc.
I think we can live without Christmas's new big-ticket items? Sam Sung who are they?
If we stopped buying for one or two weeks @ one time even 2 days we can make most of these corporations at least listen to us especially big oil if we didn't drive!
All the heads of these corporations should be brought up a on terrorism and murder charges!
Vancouver-registered Glamis Gold get out of Guatemala
Bobb999
6 years ago
'Fraid to say gold stocks have been among the best investments of the last few years, and may be among the few sectors likely to do well as N. American economies slow, which could occur in '06.
One does not have to buy Glamis, and one need not be an advocate for unethical behaviour in order to be an investor.
In fact, you can do what Greenpeace has done with Forestry stocks: Buy shares which then entitle you to attend the Annual General Meeting and advocate for improved co. practises.
It's been said that buying a company's products (in this case gold) does more to support the company than buying shares does. Because profit from sale of a product goes straight to the co's bottom line.
skeptikool
6 years ago
Fiat lux,
Did that. Got this:
Search Results
You searched for: environment article 322
Displaying 1 - 25 of 500
Result Page : 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20
Am none the wiser. Suggest you might copy and paste title of article and/or salient points you referred to. Looks like an interesting link to add to favorites - The Independent, that is. Thanks