By Joel McKay
The recent commodity boom has created a new problem for Vancouver’s mining sector: civil unrest.
Protestors have struck verbal and physical blows against five locally operated mining companies in the last two weeks.
They say they’re fighting for the environment, the rights of indigenous people and fair wages.
But the near-record value of precious metals and minerals could also be a driving force behind much of the hostility, said one expert.
“The commodity price boom makes governments, labour unions, people around mines and so on think there’s a pot of gold, sometimes literally inside the mine, and it causes hostility toward mining, rent seeking and even attacks,” said Fred McMahon, vice-president of international research at the Fraser Institute.
Precious-metal prices have climbed to record highs throughout the last year, fuelling gold fever inside and outside the industry.
Four of the five Vancouver companies targeted in recent weeks are focused on precious- metal projects, notably gold, silver and platinum.
The most startling example of hostility came last week when London-based African Barrick Gold reported that police had killed seven “criminal intruders” at its North Mara mine in Tanzania after 800 people stormed the mine armed with machetes, rocks and hammers.
African Barrick said the intruders had “attempted to remove ore” from the mine.
Though none of the incidents targeting Vancouver companies have been quite so vicious, they continue to threaten operations.
Eastern Platinum (TSX:ELR) was forced to slow production at its Crocodile River mine in South Africa earlier this month after workers drove vehicles through the security gate and sabotaged underground electrical and pumping equipment to cause flooding.
The next day, representatives from four local First Nations protested against Imperial Metals’ (TSX:III) landholdings in B.C.
Last week, junior miner Southern Arc Minerals (TSX-V:SA) reported that a group of demonstrators had set fire to one of the company’s drilling rigs in Indonesia.
A day later, representatives from indigenous groups in Latin America flew into Vancouver to join forces with MiningWatch Canada, Mining Justice Alliance and the Center for International Environmental Law to protest against Goldcorp (TSX:G) and First Majestic Silver (TSX:FR).
Protestors from Honduras and Guatemala spoke openly against Goldcorp’s operations there, claiming its mines had damaged local housing and contaminated the water.
“What in effect has happened is that the Marlin mine, which is owned by Goldcorp, is participating in a process of ethnocide in Guatemala,” said Guatemalan lawyer Benito Morales.
The issue at Marlin came to light last year after the Inter-American Commission on Human Rights (IACHR) asked the Guatemalan government to suspend operations at the mine until human rights concerns could be addressed.
The mine has remained open.
Goldcorp said in a recent report, “IACHR’s action is based on environmental allegations that are entirely without merit.”
But that hasn’t stopped indigenous and environmental groups from pushing their agenda elsewhere.
The groups have managed to get 15 U.S. congressmen and women to sign a letter asking the Guatemalan government to shutter the mine.
Meantime, pressure is mounting against First Majestic regarding an early-stage project it’s working on in Mexico. Indigenous people say the project, known as Real de Catorce, is located in a sacred area where the Wixarika people believe the sun rose for the first time.
“We are willing to go into an endless battle to be able to save the most sacred place to us,” Wixarika healer Jesus Lara said in Vancouver last week.
But Keith Neumeyer doesn’t believe a battle is necessary.
“This area where we’re at is about five kilometres away from the area they claim is sacred, and there’s never going to be any work in that area,” said Neumeyer, president and CEO of First Majestic. He added that the project is years away from being a mine.
Still, protestors have called on Canadians to stand up for them, pointing out that the Canadian Pension Plan (CPP) has investments in both Goldcorp and First Majestic totalling $260 million.
“Goldcorp’s Marlin mine is an example of a direct investment in conflict and outright flouting of internationally recognize human rights,” said Jen Moore, Latin America program co-ordinator at MiningWatch.
But a rundown of CPP’s investments shows that Goldcorp and First Majestic aren’t anomalies. In fact, CPP has invested in dozens of Canadian-based resource companies.
Although the industry still gets a bad rap for its environmental record, Neumeyer said it’s come a long way and his company invests a lot of time and money in the communities where it operates.
“When we go into an area like this we actually clean up the towns more than any harm we would ever do.”