Guatemala says it will suspend Goldcorp mine

Guatemala says it will suspend Goldcorp mine
Company denies the allegations against it and says that for now, the mine will keep operating
By Fiona Anderson, Vancouver Sun


The Guatemalan government said it would suspend mining at Goldcorp Inc.'s Marlin mine in response to concerns raised about the company's environmental and human rights performance.

But Goldcorp, which denies the allegations, says the suspension process will take time and for now the mine is operating and expects to continue operating.

The allegations — which include drying up and contaminated water sources, negative health effects and a lack of prior consent to the mining — were brought by 18 local Mayan communities to the Inter-American Commission on Human Rights, a branch of the Organization of American States.

Last month, the IACHR asked Guatemala to shut down the mine until it had time to look into the merits of the complaints.

More:
http://www.vancouversun.com/news/Guatemala+says+will+suspend+Goldcorp+mine/3198018/story.html

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Goldcorp’s Marlin Mine Faces Scrutiny
June 8th, 2010 - 1:01 pm | by GoldAlert

A human rights commission has called for Goldcorp’s (GG) Marlin mine in Guatemala to be shut down pending an investigation into alleged human rights abuses and environmental problems. The Inter- American Commission on Human Rights considers its rulings binding on member governments, which include Guatemala.

The order came down just three days after the release of a study conducted by the University of Michigan revealing that tests in August of 2009 found higher levels of mercury, copper, arsenic, zinc and lead in the blood and urine of area residents who lived near Marlin mine. However, the President of Guatemala, Alvaro Colom, expressed in a radio address that he is opposed to closing the mining operation. Goldcorp has not received a formal indication from the government concerning its response to the ruling, which was issued on May 20th and requires Guatemala to comply within 20 days.

Under pressure from a shareholder proposal by Vancouver-based Northwest & Ethical Investments LP, Goldcorp commissioned its own assessment into Marlin’s conditions. The report was released last month, and cited Guatemala’s poor human rights climate. Specific instances of such offenses included the 2005 murder of a local resident by an off-duty mine guard as well as the killing of a protester. Furthermore, the Inter-American Commission on Human Rights is investigating allegations that the government issued the mining concessions and allowed mining to begin “without the prior, complete, free, and informed consultation” of the local residents.

The Marlin mine produced approximately 275,000 ounces of gold in 2009, or roughly 11% of Goldcorp’s total production, as well as 4.1 million ounces of silver - worth a combined $416 million based on the current prices of gold and silver. Cormark Securities estimated that Marlin is expected to account for 18% of the company’s 2010 cash flow and 6.8% of its net asset value, such that the closing of the mine would have a meaningful impact on Goldcorp’s bottom line. However, the firm also noted that Goldcorp has faced opposition at Marlin for “several years and this is the latest challenge thrown their way.”

http://www.goldalert.com/stories/Goldcorps-Marlin-Mine-Faces-Scrutiny

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Posted: June 18, 2010 10:17 AM
An Environmental Disaster We CAN Avoid: Canadian Mining in Guatemala

http://images.huffingtonpost.com.nyud.net:8090/2010-06-18-image002.jpg

A young child exposed to water near the Marlin mine, run by Canada's
Goldcorp, in Guatemala

Canadian mining giant, Goldcorp, has been ordered to suspend mining operations in Guatemala. The Inter-American Commission on Human Rights found evidence that a mine in an indigenous region outside of Guatemala City was poisoning the water supply essential to agricultural development and human survival in the region.

But the Guatemalan government is ignoring the ruling.

The Inter-American Commission is an international body relying on voluntary nation participation. Its rulings are supposed to be binding on member countries, but in reality, compliance is more about political will than international legal obligations. Guatemala has an investment agreement with Goldcorp that is lucrative for the country. The mine employs over 2000 people in a generally poor area of Guatemala. In the face of immediate financial consequences, long term environmental concerns are taking a back seat.

This is not the first time Goldcorp has run into trouble in Guatemala. Veteran news reporter, CTV's Paula Todd, spent two weeks in Guatemala last month reporting on the human rights abuses inflicted by the company upon the rural community. These abuses include allegations that Goldcorp and/or the Guatemalan government murdered a local activist because of his objection to the environmental destruction caused by the mining operation. The International Labour Organization has already called on the Guatemalan government to close the Goldcorp operation because of human rights abuses in the area. Even Goldcorp's own Human Rights Impact Assessment called for a halt to mining activities because of serious human rights abuses at the mine.

More:
http://www.huffingtonpost.com/emma-rubysachs/an-environmental-disaster_b_617155.html