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Peru - Yanacoha Gold Mine - Dividing and Polluting

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dividing and polluting

yanacocha gold mine in peru

“Had they just shot me in the head, I would have felt better. Nothing could be worse than seeing my daughters suffer and hear them tell me about the tremendous pain in their eyes, their backs, their heads, day in day out. What can a father say to his sick children? How can I explain that the world’s richest gold mine sitting on that mountain does not want to help us?”
Alfonso Charrasco, more than three years after the mercury spill that forced him and his family to flee their birth village.


© sjoerd panhuysen

corporations newmont [usa], buenaventura [peru]

High up in the mountains behind the beautiful town of Cajamarca in the Peruvian Andes, the Yanacocha gold mine carries out its operations. It has already leveled five mountains, and is heading towards its sixth target, Mount Quilish. The local municipality is fiercely opposed to the exploitation of Mount Quilish, the source of their drinking water. Ten years of living beside the continent’s largest gold mine has taught them a lesson: “no more”.

The Yanacocha mine is a 251-squarekilometer open pit mine located 18 kilometres from the town of Cajamarca. The World Bank’s IFC has provided loans totaling US$150 million and has a 5% equity investment in the mine, which is a joint venture with Newmont (US) and Buenaventura (Peru). According to the IFC, its involvement ensures adherence to the highest social and environmental standards, which supposedly makes Yanacocha an example of best mining practice. However, according to the local people, the region of Cajamarca would be better served by investments in tourism, forests and agriculture.

The mining operations, which use large quantities of cyanide in a very fragile region, have contaminated the water sources, leading to the disappearance of fish and frogs. Cattle have become sick, the air has been polluted, and medicinal plants have been lost. All of this was recently confirmed through an independent environmental audit by a Colombian consultancy firm.

Campesino communities living close to the mine have put forth an official complaint, asking for funding to clean up their water. They also demand a reclamation and preservation program for medical plants, a fish and frog repopulation scheme, and compensation for former landowners in the form of equivalent land and funds to reestablish farms. Although many of these measures would cost a fraction of what this profitable gold mine earns, the communities are still waiting. In the meantime, they have called upon the World Bank Group and Newmont to stop the expansion to Mount Quilish. Furthermore, Peru's constitutional court has ruled that expansion can only take place if the corporation can prove that mining will not endanger Cajamarca's drinking water.

a toxic tragedy
On June 2nd, 2000, a truck from the Yanacocha mine spilled 151 kilograms of liquid mercury along a 40-kilometer stretch of highway passing through Choropampa and two neighboring villages. People gathered up the mercury, believing it to be a valuable metal. According to conservative government estimates, more than 900 people were poisoned. Symptoms of mercury poisoning (skin irritation, headaches, diminished eye sight, kidney problems, stomach aches, etc.) emerged a few days after the spill. Several of the victims were hospitalized, and one woman went blind.

Suffering from the effects of the mercury spill continues today. Juana Martínez from the Choropampa Defense Front said: “Several children have been born missing fingers and toes. Nothing like this ever happened in our village before the mercury spill.” Miscarriages are also occurring at an alarming rate, while children suffer from chronic nosebleeds, respiratory infections, loss of sight and hearing, chronic migraine headaches and an inability to concentrate

The community of Choropampa has called for an evaluation of the spill’s health impacts, the presence of a doctor to monitor the situation, and economic compensation for health damages and business losses. However, Yanacocha’s responses have been unsatisfactory. In April 2003, the company published a report of the spill that ignored the direct impacts on human health. The IFC commissioned a lengthy dialogue process that, after two years, resulted in two studies that have yet to be finalized. Meanwhile, the inhabitants of Choropampa still have not received adequate treatment. They feel abandoned and contaminated.

divided communities
Although the Peruvian government established a special law to ensure that half of the taxes paid by the mine would be invested back into the region, Cajamarca has become the second poorest district in Peru since the start of mining operations in 1993 (FONCODES). Yet while Cajamarca’s rural poverty increases, a few individuals in the city benefit tremendously. This unequal distribution of the mine’s costs and benefits has caused major conflicts and an overall atmosphere of suspicion.

Displacement has forced people into the city, where they have no way to make a living. Traditional practices are being forgotten, and families are losing their community support structures. This has resulted in a significant increase in domestic violence and other social ills. Cajamarca now has a booming prostitution trade in which girls as young as 14 sell themselves to miners, with no protection from HIV and other sexually transmitted diseases.

In 2001, allegations surfaced that Newmont paid Peru's former chief of intelligence, Vladimiro Montesinos, to bribe and extort Peruvian judges in the bid for Yanacocha. In a videotape, Montesinos is shown pressuring a judge to rule in favor of Newmont. After further evidence came to light in 2003, US federal authorities have begun to investigate the allegations. However, despite having a zero tolerance policy against corruption, the IFC has so far refused to undertake its own investigations

victory
In september 2004, after 2 weeks of protests and road blocks that shut down the city of Cajamarca, Peru, the Minister of Energy and Mines met the protestors' demands and withdrew Newmont Mining Company's permit for mining on Mount Quilish. More information .

more pictures at international financial institutions

more information:
National Coordination of Mine Affected Communities: www.conacami.org.pe (spanish)
Project Underground: www.moles.org
Ecovida: www.ecovida.org (spanish)
Guarango Cine y Video: www.guarango.org
Oxfam America: www.oxfamamerica.org


 


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