In the third article in the series, our EVS volunteer Alexandru Mustata tries to understand better why 75% of all the gold mining companies in the world are based in Canada, as well as what their behaviour is in the countries where they operate. In the second part of the article, we see what measures some countries have taken against cyanidation.

In the previous article about gold mining I enumerated a series of accidents caused by this unsafe industry. Today, I wanted to write about bans and how these dangerous practices can be stopped. However, two extremely relevant events took place recently, requiring immediate attention, as they remind us why these methods need to stop expanding, and even cease existence as soon as possible.

The first one too place in Canada, and it was the typical gold mining accident nowadays. A tailings pond (read: cyanide lake) from the Mount Polley copper and gold mine breached and five million cubic meters of toxic waste spread around in the Cariboo area, so far affecting several creeks, lakes, and two river systems. The images captured can give some perspective on the disaster. Although they look like generic flood footage, remember that it’s not only water and mud there, but also toxic substances, especially lead and arsenic. The disaster is affecting Canada’s environment, economy and culture, especially those of the First Nation aboriginals.

The second dam which fell in a 40 day interval was built in Brazil, and it caused the death of three workers. The workers were buried under tons of ore, and the army cooperated with firemen to look for survivors. All the costs for such rescue operations are not covered by the companies which own the mine, but by the government of a country where almost one third of the population lives in poverty.

Such events draw the attention of media, the public and governments. For example, in Canada they represent one of the main environmental concerns. This is caused by two reasons: first of all, the country is very rich in resources, and several times the resources are in areas where indigenous communities have lived for years, therefore bearing special rights for the lands. Secondly, there is an international interest, as roughly 75% of the mining companies in the world are based in Canada. Over 1,300 mining companies, the majority listed on the Toronto Stock Exchange, have their headquarters there, with the capital coming from all over the world. They operate in over 100 countries in Europe, Asia, South America or Africa.

If you ask the companies, the reason for this is the expertise Canadians have, as there exists a century long tradition of extraction, which is historically verifiable. However, as the industry evolved, so did the governments, and the real reason new enterprises emerge all the time is mostly judicial.  Listing a company on the stock exchange is not heavily regulated, you do not need Canadian shareholders or a large amount of transparency, and the government has little interest in the financial details of the mines operating outside of the borders, as long as the local taxes are paid.

In exchange for this, the Canadian government expects these companies to respect the laws of the states where they operate, and there are only two laws which apply internationally against bribery and corruption. But given the amount and variety of companies and local laws, they cannot really check if everybody is acting accordingly. Sometimes, however, they are successful, and Griffiths Energy was recently caught trying to offer the Chad government a $2 million bribe. In other fields, however, they have no possibility to act, and they rely on the local governments to intervene.

And there are several case where they should or should have. Barrick Gold Corporation’s security forces have shot, raped and beaten indigenous women in Papua New Guinea. Anvil Mining Ltd allegedly supported the Congolese militia which massacred hundreds of people, and the Supreme Court of Canada considered that the class-action suit should be held against them in the Congo. Similar abuses happened in the Philippines, China, El Salvador or Guatemala, and you can read about them in detail in this Vice article.

Fortunately, not everybody is blind to the accidents or the flagrant law breaking for which these companies can be held responsible. Thus there are a series of bans on mining throughout the world. In the Czech Republic, there is a resolution since 1999 which regards gold mining as undesirable due to the low domestic gold demand. The Parliament proposed early this year a full ban owing to serious environmental hazards. A few days ago, the neighbor Slovakia effectively banned mining as well, by putting the tailings ponds out of law.

Thanks to the federal system, in the United States cyanide mining is banned at a state or county level in Montana, Colorado and Wisconsin. Turkey and Argentina also have stiff regulations on the use of cyanide, while Costa Rica, Hungary and Germany have completely banned it. Greece has stopped the inception of several gold mines, and in Honduras, Peru or the Philippines there have been grass roots movements against mining.

So what can be done in order to stop the growth of this dangerous extraction method? And especially, what can one individual do to help? In the next and last article in the series, we will look at how a completely grass roots movement managed to stop the creation of the largest gold mine in Europe.

References:

http://www.em.com.br/app/noticia/gerais/2014/09/10/interna_gerais,567542/deslizamento-de-terra-em-mina-deixa-vitimas-e-mobiliza-bombeiros-em-itabirito.shtml

http://spectator.sme.sk/articles/view/55078/10/government_passes_new_rules_for_cyanide_leaching_method.html

http://www.e-mj.com/features/1656-the-current-status-of-cyanide-regulations.html#.U2eCifmSwdc

http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/getting-to-the-bottom-of-the-griffiths-energy-bribery-case/article8122202/#dashboard/follows/