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Guatemala, July 2005
The rain clouds move slowly away, covering
the valley in bright sunlight. We listen to
Don Delfino, mayor of this little village in
the western mountains of Guatemala. He tells
us about the latest local conflict.
"We used to have an agreement with another
community," says Don Delfino, pointing north,
"They live near a stream and always shared
their water with us. But now, they think we
are in favor of the mine and they have shut
us off. Our girls now have to walk long
distances to get water from somewhere
else."
The valley is beautiful, and a river
calmly slides through it. People cultivate
corn and beans, or herd some cattle.
Illiteracy is high and health care is almost
non-existent. While we are there, a local
health post is opened for consultations, but
is badly supplied. The roads leading up to
the village are terrible and we are feeling a
little carsick after driving on it. A sign
post along the way indicates that the World
Bank is funding improvements to the roads
that bring you to Montana's gold mine.
Don Delfino looks down the valley as he
speaks. Just a few short meters away from
where we stand, there is a new boundary. From
that point onwards the valley is owned by
Montana, a Canadian gold mining corporation.
Wherever you look, you see signs of
preparation for mining activities. There is
the pond, the leaching areas, the roads, the
mountains designated to be crushed. We hear
trucks driving up and down while heavy
machinery makes loud noises. According to Don
Delfino, these works go on day and night.
Most of the laborers come from places like
Mexico and Honduras. Some locals also found
jobs, and that is good. But, says Don
Delfino, their contracts end in just a few
months, when construction is finished and the
mine will start to operate. Nobody really
knows what will happen after that.
mining enters guatemala
A couple of years ago, Montana, a
subsidiary of Glamis Gold from Canada, bought
concessions in this valley of Guatemala. Like
many other foreign companies, it is now
considering the country an attractive and
safe place. One reason for this are the
Guatemalan peace Accords signed in 1996,
ending thirty years of civil war. The war
brought death and fear upon hundreds of
thousands of Guatemalan indigenous and
non-indigenous people and is still very
present in society today. Another reason for
foreign companies' increased interest in
Guatemala are the stringent economic reform
programs which aid donors imposed on the
country. Tax cuts and deregulation were
supposed to create a "favorable investment
climate." However, any favors go mostly to
the companies while the ordinary citizen or
farmer seems to lose out again.
Guatemala is now awash with mining
concessions. Experience teaches that mining
development hasprofound impacts on the
environment and can transform social
structures - not always for the better.
Guatemala's gold and silver is going to be
extracted by crushing entire mountains and
leaching them with toxics such as mercury and
cyanide. Even in small quantities, these can
be fatal for plants, cattle and human beings.
In addition, the process requires large
quantities of water, which will be taken from
rivers and pumped up from underground
aquifers. It will become more difficult for
local farmers to access water for irrigation,
cattle raising and household use. Many people
will lose their livelihoods as a result. And
the jobs created by the mines will not make
up for that. Because the technology is
capital-intensive, only a few long term jobs
will be created, mainly for specialists. But
people don't know this, and many will flock
to the mining areas, hoping to find work. In
most mining countries, this generates all
sorts of difficulties, including rivalries,
prostitution and sexually transmitted
diseases.
the montana mine
The World Bank is supporting the Montana
gold mine in the department of San Marcos
with US $45 million and a lot of political
goodwill. It claims that mining development
will generate revenues and employment. The
reality is that only 150 long-term jobs will
be created, mostly for skilled workers. In
addition, the corporation negotiated a deal
with the Guatemalan government which implies
that only 1% of the revenues will stay in
Guatemala. Or, in other words, 99% of the
gold mine's profits go to the pockets of the
Canadian corporation. Local people will never
see any of it.
In Don Delfino's village, there is no sign
of all of that now, since the mine has not
started operations yet. However, problems are
already arising, and not just with the
neighboring village. Since the company moved
in, prices for water rights skyrocketed. Don
Delfino explains that the lifetime use of a
spring used to cost 300 quetzales (about 30
euro), and is now at 1000 quetzales. It is a
simple question of price and demand, and the
mine demands a lot. The company is also
buying up land.
"They offer us 4000 quetzales a cuerda ,
which is a lot of money and many of us
happily accepted it. But we didn't realize
you have to pay at least five times that
amount for a similar patch of land in other
places."
Some people don't want to move. But the
company has said it will not take
responsibility if those who stay experience
any problems with land or water as a result
of the mine.
Opposition to the mine is growing. In
January 2005, local villagers blocked a road
used by mining trucks to transport
construction materials. The protest got out
of control when the army was called in and
one farmer was shot dead. Instead of
addressing these disturbing events, the World
Bank handed the corporation the last tranche
of its loan. In April, Catholic Bishop
Ramazzini of San Marcos and two Guatemalan
civil society members met with Board members
of the World Bank in Washington. They called
upon the Bank and the company to suspend
operations until the problems were resolved.
They did so explaining how further conflict
may have very dangerous consequences in the
Guatemalan context. But construction works
continue unchanged.
The town council of the Sipacapa community
near the mine then decided to hold a
municipal referendum as a peaceful and
democratic means to express its opinion.
Calling a referendum is a legally established
right under the Guatemalan constitution.
Moreover, Guatemala, with a population that
is over 80% indigenous, signed the convention
of the International Labour Organisation,
which gives indigenous peoples the right to
determine what happens to their land and
resources. And the World Bank is not supposed
to finance mining operations that do not have
broad community support.
The referendum in Sipacapa received
widespread international support and
solidarity and was carried out in June 2005.
An overwhelming majority voted against the
development of open pit mining. In Peru, a
similar referendum on gold mining in 2002 was
acknowledged by the company involved and
followed with their withdrawal. But in
Guatemala, Montana dragged the community to
court, claiming the referendum was illegal. A
district court ruled in favor of the
corporation stating that the Sipacapa town
council is not entitled to regulate any
aspect related to underground works.
Guatemala's deputy minister for mining Mr
García is reported to say that the outcomes
of the referendum are "...invalid and lack
legal ground as they (...) impact Montana
rights."
The Sipacapa municipality is currently
appealing this decision with an injunction at
the country's constitutional court.
Meanwhile, neighboring communities are
organizing and preparing for similar
referenda.
this is where we are at
This news has also reached the village of
Don Delfino, a few miles up. His people are
not sure yet whether they want to hold a
referendum also. Near the clinic, a new
signpost with the village's name lies on the
ground, ready to be installed. It carries the
logo of Montana and says "village of gold and
silver." Don Delfino shrugs. "Aqui estamos.
This is where we are at. The mine told us
there will be no negative impacts or
pollution. We will wait and see if it's
true."
Before starting the bumpy ride home, we
stop to get a drink at the local shop. It is
hard to miss Montana's notice board next to
the shop's counter. It features a newsletter,
a radio announcement and nice pictures. The
mine will benefit us all, it says. And in
case there are any questions, everybody
should feel free to call or email Montana. We
slowly sip our fruit juices and wonder about
these statements.
Janneke Bruil
Friends of the Earth International
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