Vancouver-based gold giant Goldcorp (TSX:G) (NYSE:GG) and the accusations it has faced over allegations of environmental damage and human rights violations in countries where it operates, particularly Guatemala, have been put in the spotlight by investigative filmmakers.
In an in-depth documentary, news outlet AlJazeera TV analyses the claims against the miner, which has said in its defence that it is sharing its high revenue with the underprivileged local community by providing jobs and economic development.
The company owns Guatemala's Marlin gold mine, which opened in 2005 despite the residents' opposition. While critics say the operation is environmentally unsound, Goldcorp has pointed out that it has built schools, roads and health clinics in the region around the mine, which is home to two of Guatemala's indigenous Maya groups, Mam and Sipakapense.
The accusations against the company have recently reached Canadian politicians. In late September, a trip by five parliamentarians to the Central American country – invited by the company and flown to Guatemala on Goldcorp's private jet – raised questions from the public and the mining industry watchdog over lobbying regulations.
"Having closed-door meetings with government officials and having select meetings with certain community actors positions [Goldcorp] in a conflict that makes them look very one-sided and is going to undermine whatever they may have to say coming out of this," Jen Moore, Latin America Program Coordinator for MiningWatch, told CBC News.
According to the industry watchdog, companies such as Goldcorp are discrediting Canadian mineral and mining firms overseas.
Added Moore: "The credibility and the independence of Canadian government and elected members is [also] undermined by flying in the company's jet."
Meanwhile, the gold miner keeps adding to its financial success.
At a time when most miners are reporting profit below estimates, Goldcorp posted better than expected third-quarter results as it benefited from operating improvements at its two flagship operations: Canada's Red Lake and Mexico's Peñasquito mines.
Goldcorp, which keeps its books in U.S. dollars, posted adjusted earnings of US$441 million, or $0.54 per share, surpassing analysts' estimate of $0.46. Revenue reached a quarterly record of $1.5 billion.
The news surprised a few as the company lowered its production guidance earlier this year due to ongoing operating problems. Goldcorp was having difficulties reaching a high-grade zone at Red Lake in Ontario and had water shortage issues at Peñasquito.
However, the miner said gold production more than doubled at Peñasquito, mainly thanks to stronger ore grades.
The Canadian miner has three new mines set to start production next year: the Cerro Negro project in Argentina, Eleonore in Quebec and Cochenour at Red Lake. •
