Editor’s note: The shock doctrine is a concept proposed by Canadian journalist Naomi Klein and is outlined in her book, The Shock Doctrine. The Rise of Disaster Capitalism, published in 2007. Its central proposition is that the capitalist markets take advantage of moments of tragedy or disaster, such as the pandemic, to propose or impose policies that benefit them. People’s inability to react at these times favors this strategy.
But the shock doctrine is part of a continuum. Civilization has been doing the same thing now that it has been doing for 10,000 years. Civilization traumatizes individuals, communities and cultures, then takes advantage of that trauma to grow and expand. Modern capitalism is civilization attempting to continue to function and sustain itself, while everything (eco-systems and social structures) collapse around it. People do not willingly hand over their personal power and autonomy and that of their community unless they have first been broken as a human being and built up again as a citizen. The shock will continue until we do something about the problem at the core, civilization itself. Or until civilization reaches its inevitable suicidal endgame.
Historically, pandemics have forced humans to break with the past and imagine their world anew. This one is no different. It is a portal, a gateway between one world and the next.
We can choose to walk through it, dragging the carcasses of our prejudice and hatred, our avarice, our data banks and dead ideas, our dead rivers and smoky skies behind us. Or we can walk through lightly, with little luggage, ready to imagine another world. And ready to fight for it.
—Arundhati Roy, April 2020
Just over two years ago when lockdowns were being declared like dominoes around the world, there was a brief moment when the COVID-19 pandemic seemed to hold the potential for much-needed reflection. Could it lead to a reversal away from the profit-driven ecological and socio-economic dead end we’ve been propelling toward?
Arundhati Roy’s call to critical reflection was published in early April 2020. At the time, she was observing the early evidence, on one hand, of the devastating toll of the pandemic as a result of extraordinary inequality, the privatized health care system, and the rule of big business in the U.S., which continued to play out along lines of class and race.
She was also writing with horror at how the Modi government in India was enacting an untenable lockdown on a population of over a billion people without notice or planning, in a context of overlapping economic and political crises. While the rich and middle class could safely retreat to work from home, millions of migrant workers were forced out of work into a brutal, repressive, and even fatal long march back to their villages. And that was just the beginning.
The jarring “rupture” with normality that Roy wrote about two years ago has reinforced many “prevailing prejudices”, as she anticipated. Whether we’re talking about Amazon, the pharmaceutical industry, or mining companies, big business managed to have itself declared “essential” and profit handsomely. Meanwhile, poor and racialized people have paid the highest costs and experienced the greatest losses in the U.S., India, and many other countries around the world.
But we have also seen how people have fought back hard showing tremendous resilience in the face of greater adversity.
This is very much the case in mining-affected communities around the world, many of whom were already in David and Goliath battles before the pandemic to protect their land and water from the harms of mineral extraction. They have found no reprieve since the pandemic began.
While taking measures to protect themselves from COVID-19, these movements have refused to let their guard down as governments and corporations have taken advantage of greater social constraints to advance the mining industry.
A Pandemic Made to Fit the Mining Industry
Land defenders block mine-related traffic in Casillas, Guatemala, 2019. (Photo: NISGUA, via EarthWorks Flickr)
Since April 2020, the Institute for Policy Studies(IPS) Global Economy Project has been participating in the Coalition Against the Mining Pandemic, which came together to help document what was happening in the mining sector during the pandemic. The coalition is made up of environmental justice organizations, networks, and initiatives from North America, Europe, Asia-Pacific, Africa, and Latin America that work in solidarity with mining-affected communities.
The group observed early evidence that mining companies would be among the worst pandemic profiteers. In the past, after all, these corporations have sought to benefit from floods, coups, dictatorships, and other disasters to rewrite laws and push projects through while local populations are busy dealing with catastrophe and living under the gun.
In addition, the coalition especially wanted to understand what the pandemic meant for the struggles of Indigenous peoples and other mining-affected communities on the frontlines with whom we work in solidarity.
This collaborative research effort has involved local partners in 23 countries to document what it’s been like trying to protect community health from the ravages of the pandemic — while also fighting against the threat of losing their water and territory from the long-term impacts of gold, iron-ore, copper, nickel, coal, and lithium mining.
The 23 countries where we looked at cases have recorded 29 percent of the world’s known COVID cases, 43 percent of recorded COVID-related deaths, and include two of the top ten countries for the highest mortality rates (calculated by dividing the number of recorded COVID cases by the number of COVID related deaths). In order, these are Peru and Mexico. (Ecuador, where we looked at another case study, now ranks 11th.)
As expected, our recently released Latin America report No Reprieve demonstrates how COVID-19 restrictions seem to have been made to fit the mining industry. As Price Waterhouse Cooper observed in its 2021 Great Expectations report on the global mining industry, “by any important measure, mining is one of the few industries that emerged from the worst of the COVID-19 pandemic economic crisis in excellent financial and operational shape.”
Precious metal prices rose in the context of the uncertainty created by the pandemic, leading to historic profits for some companies despite lower production in 2020. Prices for base metals, such as copper, soon followed as markets opened up. This was much earlier than the lifting of social constraints, putting affected communities at an even greater disadvantage than before the pandemic in their struggles for water, land, and survival.
No Reprieve for Mining Affected Communities
The lengthy lockdowns and other public health measures that were put in place not only spelled greater socio-economic crisis than before for these communities. They also meant greater difficulty or outright bans on meeting together to discuss concerns about environmental contamination, hardship, mining projects, and the greater difficulty of dealing with government offices responsible for permitting and inspections.
Online meetings were often inadequate or unavailable. When there was no other option but to get together to protest, the risks were greater than ever.
In Brazil, as in many other countries in Latin America, mining has continued pretty much without interruption since the start of the pandemic. For over a year, the community of Aurizona in the state of Maranhão has been living without an adequate supply of drinking water since the rupture of a tailings dam at the Aurizona gold mine owned by Mineração Aurizona S.A. (MASA), a subsidiary of the Canadian firm Equinox Gold.
On March 25, 2021, at the height of the pandemic in this part of northwestern Brazil, the Lagoa do Pirocaua tailings dam overflowed, contaminating the water supplies of this community of 4,000 people. Despite company promises, the community continues to lack adequate water supplies. Meanwhile, the company obtained a legal ruling that prohibits street blockades and filed a lawsuit against five movement leaders to try to deter their organizing.
In Colombia, Indigenous Wayúu and Afro-descendant communities in the La Guajira region experienced heightened risks from the continued operation of the Cerrejón mining complex, the largest open-pit thermal coal mine in Latin America. This mine is now owned exclusively by Swiss commodities giant Glencore, which consolidated its control over the mine in January 2022 when it purchased the shareholdings of Anglo American and BHP Billiton.
This mine has already operated for over three decades and displaced dozens of communities. In September 2020, the United Nations Special Rapporteur on Human Rights and the Environment, David Boyd, asked the Colombian government to at least temporarily suspend Cerrejón’s operations, pointing out that the contamination, health impacts, and lack of water the communities already faced increased the risk of death from COVID-19.
Instead, the mine continued and even accelerated operations, while communities suffered serious physical and emotional impacts from greater social confinement and loss of subsistence economic activities. The company donated food and safety equipment to improve its image, but this generated divisions and disagreements among communities that were difficult to resolve given the restrictions on meetings.
Making this situation worse, the government and companies have refused to respect a 2017 Constitutional Court decision that recognized violations of community rights to water, food, sovereignty, and health in authorizing the diversion of the Bruno Creek’s natural course to expand coal extraction. Instead, since mid 2021, Glencore and Anglo American have been suing the Colombian government under the terms of bilateral international investment agreements with Switzerland and the United Kingdom for not letting them expand the mine.
Militarized Mining
Not only did the spaces for community organizing shrink, disappear, or just get a lot harder, violence got worse in many places. In many cases, there was heavy-handed repression, heightened militarization, and ongoing legal persecution of land and environment defenders.
In Honduras, the Tocoa Municipal Committee for the Defense of the Natural and Public Commons spent nearly the entire first two years of the COVID-19 pandemic fighting for the freedom of eight water defenders who were arbitrarily detained for their peaceful opposition to an iron ore project owned by the Honduran company Los Pinares Investments.
They were only freed in February 2022, after the narcodictatorship of former President Juan Orlando Hernández lost power to the country’s first female president, Xiomara Castro. Meanwhile the company, which has ties to U.S. steel company Nucor, managed to start operations in mid 2021 without obtaining the required environmental permit, immediately putting in danger the future of the San Pedro river on which downstream communities depend.
In Mexico, a special group of public armed forces called the Mining Police was inaugurated in 2020, aimed at protecting mining facilities from mineral theft. The recruitment of troops was announced for the first time in July of that year, during an online event entitled “The reactivation of mining in the face of the new normality.” By the end of September 2020, the first 118 federal officers with military training had graduated and were deployed to guard the La Herradura gold mine owned by the Mexican company Fresnillo plc, which is listed on the London Stock Exchange and owned by Industrias Peñoles.
In contrast, no measures have been taken to lower the levels of subjugation, extortion, forced displacement, and violence against the communities that inhabit these same areas — such as the community of El Bajío, which neighbors the La Herradura mine, where the Penmont company from the same business group operated illegally until 2013.
Members of the community of El Bajío have faced violence since this time, despite receiving 67 favorable rulings declaring the land occupation agreements of the community members affected by the Mexican company Penmont (a subsidiary of Fresnillo plc) null and void. These rulings have yet to be executed and the risks for the community have intensified.
Two members of this community were brutally assassinated in April 2021. Beside their bodies a piece of cardboard was found on which 13 names of other community members involved in the resistance to the mine were written, a clear threat. The state has not provided any protection to family members either — although there are constant patrols by state police, the National Guard, and the army to intimidate the population.
Mining for Supposed Economic Recovery
At the same time, administrative processes for companies to get new permits got easier and projects moved forward. The justification was that mineral extraction would supposedly contribute to post-pandemic economic reactivation, but it’s well known that mining tends to divert attention from more sustainable economic sectors at a national level and impoverish local communities.
In Panama and Ecuador — both countries with few industrial mines in operation due to widespread rejection by the affected populations — there have also been attempts to accelerate mining expansion in the name of economic reactivation.
In Ecuador, there is widespread opposition to mining in the country due to its impacts on water, the country’s exceptional biodiversity, and the well-being of small farmer and Indigenous communities.
During his election campaign, current President Guillermo Lasso promoted “human rights and the rights of nature… and the protection of the environment with a sustainable agenda.” However, once he took office in May 2021, he showed his willingness to serve transnational mining interests.
On August 5, he issued Executive Decree No. 151, an “Action Plan for the Ecuadorian Mining Sector,” which seeks to accelerate mining in fragile ecosystems such as the Amazon and high-altitude wetlands (páramos). It gives legal certainty to mining companies by providing a favorable environment for investors, indicating explicit respect for international agreements that favor corporate interests. It likewise proposes the acceleration of environmental permits for mining projects without taking into account the socio-environmental impacts.
Similarly, on May 19, 2021, the Panamanian government presented its strategic plan to base its post-pandemic economic recovery on mining. Given the prevalence of corruption and the constant violations of environmental regulations and the Constitution by mining companies in Panama, citizens see this mining stimulus plan as the government aiming to enrich itself and its cronies.
Faced with the fallacy of national economic recovery through mining, a national campaign platform arose called the Panama Worth More Without Mining Movement (MPVMSM). This broad based movement of environmental organizations, teachers, workers, youth, small farmers, and Indigenous communities opposes mining and the renegotiation of the contract over the only operating mine in Panama, Cobre Panama owned by First Quantum Minerals, which they consider unconstitutional and argue should be canceled.
Despite evidence that upwards of 60 percent of Panamanians support this movement’s aims, the government insists on continuing to promote initiatives aimed at making way for mining expansion in the country.
Truly Essential Resilience and Resistance
Despite the conditions for peoples’ struggles having gotten harder over the last two years, the resilience and resistance of people fighting from the margins for their land, their water and their community health has persisted, often with women, Indigenous peoples, and small-scale farmers at the forefront.
From Mexico to Argentina, the communities and organizations who shared their experiences for this report have found ways to continue fighting for respect for their self-determination, community health, and their own visions of their future. While some projects moved ahead, others have not been able to overcome tireless community resistance.
Whether communities are fighting to address mining harms or standing in the way of these unwanted projects, their struggles are potent examples of the sort of reimagining and digging in for fundamental change that Arundhati Roy urged at the start of this pandemic.
Through their resistance, mutual care, traditional knowledge, and efforts toward greater food sovereignty and collective wellbeing, these communities and movements demonstrate the urgent need to shift away from a destructive model of economic development that has been forced on people around the world, based on endless extraction to serve international markets with primary materials that are turned into products for mass consumption.
They point out the vital need for a serious reckoning to address the harms that have taken place and to pull back the reins on such militarized mass destruction in order to prioritize peoples’ self-determination and more sustainable ways of living. This is what is truly essential if we hope to ensure collective health and wellbeing now and for future generations.
Jen Moore is an Associate Fellow of the Institute for Policy Studies.
Featured image: Francisco Tiul Tut mourns the burning and destruction of his home in Barrio La Revolucion. On January 8th and 9th, 2007, the Guatemalan Nickel Company, local subsidiary of Canadian Skye Resources, ordered the forced eviction of five Q’eqchi’ Mayan communities around Lake Izabal in El Estor and Panzos, Guatemala (Photo: James Rodríguez/mimundo.org)
While much of the controversy surrounding Canada’s extractive industry centers on oil and gas projects like SWN Resources’ drilling plans in New Brunswick, Enbridge’s Line 9 pipeline and the widely felt impact of Tar Sands extraction in Alberta, there is a significant lack of debate concerning Canada’s larger and much more influential mining sector.
It’s estimated that 75% of the world’s mining and exploration companies are based in Canada. Collectively, they account for 42 billion dollars of Canada’s gross domestic product, making mining and exploration one of Canada’s most economically powerful sectors. Some 40% of global mining capital is raised on the Toronto Stock Exchange. The impact of Canada’s mining sector, however, goes far beyond mere facts and figures.
Wherever Canadian mining companies operate, they have an indelible imprint on the social, political and environmental realities in which they insert themselves. In countries that are politically unstable or where a culture of impunity is permitted to thrive, that imprint can span generations with successive mining companies following in the footsteps of their predecessors. Such is the legacy of shame that the Maya Q’eqchi people in Guatemala have been forced to endure for the last half century.
The “Fenix” Mining Project in El Estor, Guatemala. Established in 1965 as the EXMIBAL nickel mine owned by Canadian mining firm INCO, the project was transferred to the Guatemalan Nickel Company (CGN) in 2005 after the expiration of the original 40-year license. CGN was the local subsidiary of Canadian Skye Resources, a junior mining company comprised of former INCO directors. Skye was bought by HudBay in 2008, and the project sold to the Russian-based Solway group in 2011. (Photo: James Rodríguez/mimundo.org)
For the average Canadian, the effects of mining and other forms of resource extraction are not immediately apparent; indeed, those who tend to benefit the most from such projects also tend to be shielded from the harsh realities that befall those who are affected by them, as Mi’kmaq lawyer and activist Pam Palmater toldIntercontinental Cry (IC).
“People in far-away cities may enjoy oil for their cars, diamonds from their city jeweler, or minerals needed to build cities and never have to see the housing crisis and lands stripped of trees and wildlife, or see the deformed fish and contaminated water.”
“The people who benefit are separated from the people who pay the social and environmental price,” she added.
For more than two years, Palmater, who leads the Centre for Indigenous Governance at Ryerson University, worked closely with Mathias Colomb Cree Nation (MCCN) Chief Arlen Dumas, who, in 2013, served two Stop Work Orders to Hudson Bay Mining and Smelting Ltd (Hudbay) in connection to the Lalor mine project in Northern Manitoba. According to Chief Dumas, Hudbay failed to obtain MCCN consent to operate its proposed mine, situated on unceded MCCN lands. Soon after the Stop Work Orders were delivered, Hudbay sought out and obtained a court injunction against Palmater and Chief Dumas, restraining them and others from interfering with access to the company’s property.
A long line of Canadian mining companies have adopted a similar modus operandi, avoiding their constitutional obligation to consult, accommodate or even inform First Nations before seeking approval of mining projects that could adversely affect their indigenous rights.
Far more companies have been under fire for human rights abuses and other transgressions that took place outside of Canada. Among them, there is Barrick Gold, Fortuna Silver, Sherritt International, IAMGOLD, Curis Resources, Tahoe Resources Inc., Denison Mines Corp., First Majestic Silver, TVI Resource Development, Inc., Nevsun Resources Ltd., New Gold Inc., and GoldCorp.
In their unyielding pursuit for justice and accountability, Indigenous Peoples are presently pursuing at least three of these companies in Canada’s court system. Foremost among them is Hudbay Minerals.
In 2010, Toronto-based law firm Klippensteins Barristers & Solicitors filed a set of civil suits against Hudbay Minerals on behalf of Maya Q’eqchi people in Guatemala who suffered three separate injustices in connection to the Fenix Mining Project in El Estor municipality near the Pacific Coast.
The ongoing case against Hudbay Minerals centers on the actions of its former subsidiary Guatemalan Nickel Company (CGN) and security forces hired by CGN between 2007 and 2009, specifically the murder of Adolfo Ich Chaman, a respected community leader; the attempted murder of German Chub, who was paralyzed after being shot at close range; and the gang rape of eleven women.
The case is widely considered to be a major step forward to holding the Canadian mining sector to account for its actions abroad.
The story of Hudbay in Guatemala goes back several decades to another Canadian mining company, INCO (now Brazilian company Vale). Linking together the history of INCO and Hudbay in this Central American country is crucial to understanding not only the Canadian mining sector but also its role around the world.
HISTORY OF INCO IN GUATEMALA
The violence against Indigenous Peoples who have opposed mining in Guatemala should be viewed as part of the wider violence that swept through the country in the 1950s when a military coup overthrew a democratically-elected government. “The history of INCO in Guatemala is [in its simplest form] the history of the military coup in 1954 and then the aftermath of that military coup”, Graham Russell, director at Rights Action network, stated in an interview with IC.
From 1944 to 1954 two nationalist, reformist and capitalist regimes attempted to modernize and equalize the country[1]. Part of this effort stemmed from a moderate agrarian reform bill in 1952 that would have redistributed hundreds of thousands of acres of land to landless peasants. This bill greatly affected the United States-based United Fruit Company (UFC), which was at the time the largest landholder and employer in Guatemala. Seeing the bill as a threat to its deeply entrenched economic interests, UFC hired legendary public relations expert Edward Bernays to carry out an intense misinformation portraying then-president Jacobo Arbenz Guzmán as a communist threat. While Bernays was busy winning hearts and minds, the company carried out an equally energetic lobbying effort back home to convince lawmakers and the U.S. public that Guatemala desperately needed a regime change.
Once U.S. President Dwight D. Eisenhower came to office, it wasn’t long before he authorized Operation PBSUCCESS, a covert op in which the United States Central Intelligence Agency (CIA) funded, armed, and trained 480 men led by Carlos Castillo Armas, the first of many dictators to succeed Guatemala’s presidency.
A long and brutal civil war ensued that would – over the course of 36 years – take the lives of more than 200,000 civilians and displace more than 1.5 million, culminating in a genocidal rampage against the Maya in the 1980s.
INCO had its own role to play in this vicious circle of violence. The Guatemalan military repeatedly used the company’s airplane landing strip to bring in soldiers and INCO trucks to transport them to Maya Q’eqchi lands for de-population. Graham Russell told IC that INCO’s position in the mining industry was a key factor as well, explaining that “…at this point (INCO) was the biggest private investor in all of Central America, not just Guatemala. These brutal military regimes and the wave of brutal violence starting in the late 60s and all through the 70s was directly associated to INCO’s mining interests in Guatemala.”
INCO was able to gain its status in Central America by cultivating a monopoly on nickel extraction. The company controlled nearly 54 percent of the nickel market in the West. During the 1950s it controlled 75 to 80 percent of the US nickel market[2]. Part of building this monopoly also involved Nazi war profiteering. Prior to World War II, INCO arranged a cartel agreement with the German company I.G.Farben to allow the stockpiling of nickel for the Nazi war effort[3].
INCO and the U.S. Hanna mining company formed Izabal Mining Operations Company (EXMIBAL), a subsidiary company, to operate in Guatemala in 1962. EXMIBAL attained a tax-exemption in Guatemala in 1968 for leading what was described as an “industry of transformation.” Under its contract, EXMIBAL would pay the Guatemalan government $23,000, a tiny fraction of the estimated $10 million it would make each year between 1971 and 1980.
With the civil war well underway, both government and private security forces seized the opportunity to remove any indigenous-led opposition to mining under the auspices of fighting communism. Over 400 massacres were carried out during the period of the civil war, including the notorious slaughter of more than 100 Q’eqchi who were peacefully protesting EXMIBAL’s mining operation in El Estor.
Although there was considerable resistance to EXMIBAL’s mining operation and controversy over how little INCO paid in taxes what lead to the end of the company’s mining operation was the 1980 demand from the military government of Romeo Lucas Garcia that EXMIBAL pay 5% of the value of nickel extracted to the Guatemalan government. EXMIBAL suspended operations and left Guatemala, retaining rights to its mining concession.
In 2003, the former director of INCO became the president and executive of the Canadian company Skye resources. Days before the 40-year concession on the old EXMIBAL mine expired, it was transferred to CGN, the local subsidiary of Canadian Skye Resources (purchased by Hudbay Minerals in 2008). The concession also gave CGN the “right” to expel the Maya Q’eqchi. In 2006, the International Labour Organization (ILO), a branch of the United Nations, held that Guatemala broke ILO Convention 169, a binding international law, by failing to carry out free and prior consultations with the Maya Q’eqchi. Five years prior to this, in 2001, the constitutional court of Guatemala held that the property rights of the land in question belonged to the Maya Q’eqchi. Both rulings were ignored by the Guatemalan government and CGN.
As if tearing a page straight out of Guatemala’s civil war, CGN proceeded to order the eviction of five indigenous communities from the concession area. In January 2007, a combined police and military force arrived to carry the order out with help from residents from neighboring areas who were trucked in by CGN. During the eviction, hundreds of homes were burned to the ground and, in the community of Lote Ocho, a total of 11 women were gang raped by CGN’s mine security personnel and members of Guatemala’s police and military forces.
Homes in the community of Barrio La Revolucion are burned and destroyed by personnel hired by the Guatemalan Nickel Company (CGN). (Photo: James Rodríguez/mimundo.org)
One year later, HudBay Minerals purchased Skye Resources and promptly changed the company’s name to HMI Nickel Inc.
Despite the re-branding, however, the Maya Q’eqchi would continue to face a routine of repression with HudBay’s security forces shooting and killing Adolfo Ich Chaman and paralyzing German Chub Choc in 2009. One year later, Angelica Choc, the wife of Adolfo Ich Chaman, announced her intent to sue HudBay Minerals and its subsidiary in Canada.
Eager to evade a potentially catastrophic ruling, HudBay Minerals promptly sold CGN, the Fenix mine and its other Guatemalan assets to the Cyprus-based Solway Investment Group. The sale, however, did not deter Canada’s courts from agreeing to hear the case(s) against Hudbay.
PATHWAYS TO JUSTICE
A favorable ruling could have far-reaching implications not only for Hudbay but for the entire Canadian mining sector. As Graham Russell explained to IC,
“…there is a growing number of Canadians becoming aware that there are hundreds, if not more, [Canadian mining companies] operating in many places around the world [that] are often involved in creating environmental harm or contributing directly or indirectly in serious human rights violations including killings and gang rapes.”
The possibility that anyone who suffers at the hands of a Canadian mining company could turn to Canada for their day in court could very well change the face of the industry.
Katherine Fultz, visiting Instructor of Anthropology at Pitzer College in Claremont, CA, who has studied opposition to mining in the Highlands of Guatemala, told IC by phone that community referendums as a tool to resist mining projects are also gaining popularity among mine-affected communities:
“It actually started elsewhere in Latin America. The first one was held in Peru and a number were held in Argentina and later in Columbia … Guatemala has held more than any other country with more than sixty votes at this point. Over half a million people have participated in them.”
These community referendums have rejuvenated anti-mining activism in the highlands of Guatemala leading many communities to take direct legal action against the Guatemalan government to protest mining on a national level.
Recently, the Guatemalan constitutional court ordered the suspension of two hydro-power mega projects (Vega I and Vega II) for failure to properly consult with affected Indigenous communities. Other mining projects have also been suspended due to lack of consultation with indigenous communities. In one case, the rural community of Zunil in the municipality of Quetzaltenango carried out referendums (consulta) declaring their territory to be a mining free zone.
An avenue that Canadians can use to stop international human rights abuses by mining companies may one day be found in Canada. In 2009, Liberal MP for Scarborough-Guildwood John McKay introduced Bill C-300 as a private members bill to the Canadian House of Commons. The bill called for the creation of an ombudsperson that would oversee Canadian mining firms. Bill C-300 ultimately lost by six votes in 2009, even though the NDP and Liberals held a majority in the House of Commons at the time. McKay said in a recent interview that, although he thinks existing structures that oversee mining companies need to be strengthened, re-introducing the bill is a high priority for the Liberal government.
Instead of the provisions in Bill C-300, Canadian mining and extraction companies fall under “Building the Canadian Advantage” (BCA) which the Conservative government put in place instead of Bill C-300. Viewed by critics as an irresponsible PR gimmick, BCA moved Canadian International Development Agency (CIDA) funds to support community projects run by Canadian mining companies and created a Corporate Social Responsibility (CSR) councilor to mediate disputes between affected communities and mining companies. None of these provisions, however, are binding; and while there is strong language about protecting human rights in BCA they are little more than guidelines that companies are under no obligation to follow.
The historical and contemporary case of Canadian mining companies operating in Central America shows that one should have no illusions about the role these companies play around the world. While building more north-south solidarity and mine-affected communities holding referendums are positive steps on the road to justice, there is the bigger issue related to the way that mining is tied to larger social, political, environmental and economic realities.
In an interview with Canadian Dimension Magazine, Alain Deneault, who was sued along with his co-author and publisher by Barrick Gold for the exposé Noir Canada, ties together the issues of over-consumption and planned obsolescence to the mining industry. “If we could put all of these questions on the agenda at the same time, we could say, okay, maybe it’s worthwhile to dig that hole in that specific area because we need zinc, but we’ll use it carefully. We’ll exploit zinc carefully because we’ll make sure that what we dig out will be recycled in many objects that we will use.” Deneaut went on to advocate for the creation of a permanent and independent commission of inquiry that would have powers to not only inquire into the activities of corporations but also summon their representatives to appear and submit documents.
For now, the more the Canadian public is informed about the activities of Canadian mining companies, the better. Pam Palmater advocates for a broad approach to bring Canadian mining companies abuses to light and urges that we work together to fight for our collective futures:
“…the more the public knows about the destructive activities of mining companies, who’s really profiting and what it means for our collective futures, the better chance we have at forcing change through varied means used simultaneously – including protests, court cases, political pressure, shareholder pressure, advocacy at the international level and building allies amongst social justice activists, environmentalists, scientists, First Nations, other countries, politicians and legislators.”
Notes[1] Guatemala: the politics of violence pg 1.
In a surprise move this week, the province of Ontario has declared that 23,000 square kilometres of traditional Kitchenuhmaykoosib Inninuwug (KI) land is now off limits to mining companies. It’s the single largest withdrawal in the history of Ontario.
However, it’s not without controversy. While the welcomed decision was based in part on information it received from KI, the province utterly failed to consult them before making the move. The government is obligated by law to consult Indigenous Nations in any decision that would impact their lands for better or worse.
What’s more, it would seem that the government is merely attempting to ‘appease’ KI’s leaders while simultaneously trying to avoid a PR disaster over the growing crisis with Gods Lake Resources (GLR).
A recent Ontario press statement asserts, “The Ontario government has made several attempts to facilitate communication between KI and God’s Lake Resources (GLR), a junior mineral exploration company that holds a mining lease and mining claims in the vicinity of KI, north of Red Lake in Northwestern Ontario.”
As if to say that KI’s not listening to reason, the statement continues, “Our government’s goal is to ensure that all affected parties have the opportunity to benefit from the province’s immense mineral wealth potential. When industry and First Nations communities work together on the basis of mutual respect and understanding, all parties see the economic benefits.” The decision does not have any effect on GLR’s mining interests.
“This decision could have been and can be an historical event, but once again we were excluded,” said KI Chief Donny Morris. “Now let’s finish the job. I challenge the Minister to come to KI for an historical event where we sit down, come to an agreement, and sign off together to make this withdrawal permanent under Indigenous protection. And that should included our lands that Gods Lake Resources is trying to access.”
“We are mobilized to go to Sherman lake. I cannot allow our graves to be desecrated by a company that is hiring guns to block us on our own land. That’s no way to do business,” said Chief Morris.
Editor’s note: Changing the face of a globalist, imperialist organization whose mandate is the equitable exploitation of “the common heritage of mankind” will not stop deep sea mining. We will need to stop the first attempt at enclosure and destruction of the sea floor, by any means necessary. Delegitimize, discredit and scuttle this operation. If you would like to help contact Deep Sea Defenders.
Brazilian oceanographer Leticia Carvalho will be the next secretary-general of the International Seabed Authority (ISA), the U.N.-mandated organization that oversees deep-sea mining activities in international waters. She won the election with 79 votes, while her predecessor, 64-year-old Michael Lodge, who served as the ISA’s secretary-general for two terms, received only 34 votes. Lodge has previously been accused of siding with mining companies, which went against the duty of the ISA secretariat to remain neutral and may have influenced the direction of the prospective deep-sea mining industry.
Carvalho previously told Mongabay that she would work to make the ISA more transparent and rebuild trust within the organization.
Brazilian oceanographer Leticia Carvalho has been named the next secretary-general of the International Seabed Authority (ISA) after winning an election that could change the course of the deep-sea mining industry.
Carvalho, 50, who currently works as an international civil servant for the United Nations Environment Programme (UNEP), was declared the winner of the race on Aug. 2, the last day of the twenty-ninth assembly meeting of the ISA. She won the election with 79 votes, while her predecessor, 64-year-old Michael Lodge, who served as the ISA’s secretary-general for two terms, received only 34 votes.
Carvalho will begin her term at the ISA, the U.N.-mandated organization that oversees deep-sea mining activities in international waters, in January 2025. She will be the first woman, the first oceanographer, and the first representative from Latin America to serve in this position.
Commercial-scale deep-sea mining has not yet begun anywhere in the world, but mining companies have been pushing for an imminent start of this activity — and Lodge has been accused of doing more than he should to help this process along.
During his time as secretary-general between 2016 and 2024, Lodge pushed for the finalization of a mining code, a set of rules that would allow deep-sea mining exploitation to begin. However, this code was not ultimately finished over his tenure. Lodge has also been accused of advocating for mining companies, which goes against the ISA secretariat’s duty of remaining neutral and keeping the ISA’s processes and procedures unnecessarily opaque. More recently, Lodge was also embroiled in allegations that he misused agency funds and that one of his supporters tried to bribe Carvalho to drop out of the election in exchange for another high-level position within the ISA. Lodge, however, has refuted all of these claims.
In a previous interview with Mongabay, Carvalho said that if elected, she would work to make the ISA more transparent and rebuild trust within the organization.
“For me, the mission of the ISA and the leadership of the ISA is to be a trustee — an honest broker that brings decision-makers together, offering space that belongs to the whole of humankind,” Carvalho told Mongabay in July. “It should offer transparency of its own procedures, on the decision-making processes, on the management of the budgets — all of this.”
One mining company, Canadian-based The Metals Company (TMC), has repeatedly expressed its intention to apply for an exploitation license later this year, even before the mining code is finished. However, Carvalho has said that she believes granting such a license before regulations are in place would be a “source of litigation.”
Advocates of deep-sea mining say seabed minerals are needed to fulfill metal shortages and provide materials for renewable energy technologies like electric car batteries. Yet critics say deep-sea minerals are unnecessary for such technologies and that deep-sea mining could irreparably damage the seabed and overall marine environment.
A Deep-sea Exploration by NOAA. The nodules seen here and strewn across the seafloor were deposited here millions of years ago and grow about 2 millimeters every million years. Image by NOAA.
A recent study in Nature found that polymetallic nodules, metal-rich rocks found on the seafloor, produced a kind of “dark oxygen,” which experts say gives valid reason for slowing down the race to commercially extract nodules from the deep ocean.
During the recent ISA meetings, Austria, Guatemala, Honduras, Malta and Tuvalu joined a group of nations calling for a moratorium or precautionary pause on deep-sea mining. There are now 32 countries calling for such measures.
Matt Gianni, co-founder of the Deep Sea Conservation Coalition, a group of NGOs that campaign against deep-sea mining, said he was surprised by the number of country delegates that came to this year’s ISA meeting or sent in their proxy votes for the election, and also that “such a large majority” voted for Carvalho.
“This is a historic moment for the ISA and we congratulate Leticia Carvalho and the government of Brazil [for] her election,” Gianni said in a statement. “The ISA has an opportunity to champion a new way forward for sound ocean governance that prioritizes the precautionary principle and secures the health of the deep sea and its benefits for future generations.”
Elizabeth Claire Alberts is a senior staff writer for Mongabay’s Ocean Desk. Follow her on Twitter @ECAlberts.
Editor’s note: Any compensation from chemical companies cannot make up for the repercussions of mining, in this case, salt mining. The petrochemical company Braskem, the largest plastic producer in the Americas, is responsible for the displacement of people and was well aware of the risk that the city of Maceió could sink. Yet it kept on operating the mine. As long as companies like Braskem put profit above all other needs – social, environmental, health of communities and thriving wild habitats – this ecocrisis in which we live will only get worse. It can’t go on like this anymore.
Decades of salt mining in Maceió, in northeastern Brazil, have led to earthquakes and cracks in several of the city’s neighborhoods, making buildings there unhabitable. As a result, about 60,000 people have been displaced.
Braskem, the chemical giant that acquired the original salt mining company, has agreed with authorities to clean up the affected neighborhoods and compensate locals. But those affected complain that Braskem has offered them meager amounts, with no negotiation; the sums don’t cover the value of their properties, while compensation for moral damage is also extremely low.
Locals indirectly affected do not receive compensation and continue to suffer losses, as properties within a 1-kilometer (0.6-mile) radius around the disaster zone can no longer be insured and lose value; businesses adjacent to the now unhabitable neighborhoods have also lost customers.
Maceió, Alagoas, Brazil
Streets lie deserted. Gardens have overgrown homes. Doors and windows are bricked up. The Bebedouro neighborhood in Maceió, in Brazil’s northeastern coastal state of Alagoas, is a shadow of its former self. And soon not even that.
Every building there is numbered. As soon as a property has been fenced off by iron sheets, the bulldozers will appear to flatten the land. Large parts of the historical area have already been turned into an anonymous plain.
Bebedouro is one of Maceió’s suburbs where officially nobody can live anymore. Following heavy rains in February 2018, large cracks appeared in floors and walls. Then, on March 2, a magnitude 2.5 earthquake hit the city of some 960,000 people, widening cracks and tearing up asphalt.
“Everyone went out on the street in shock, as this had never happened before,” said Neirivane Ferreira, a Bebedouro resident at the time. “Only later we learned on the news it had been an earthquake with its epicenter in the neighboring area of Pinheiro.”
But Maceió didn’t have a history of seismic activity. In 2019, the Brazil Geological Survey concluded that parts of Maceió were subsiding due to nearly 50 years of rock salt extraction, which caused the tremors and cracking. As a result, five neighborhoods were declared unhabitable by the local government; 60,000 people were forcibly displaced.
Salt mining continues
Compensation for residents was left with petrochemical company Braskem, the biggest plastics manufacturer in the Americas. But those affected complain that Braskem’s compensation program has been abusive, lacking enough coverage and often forcing them to choose between low payments or no compensation at all.
Maceió’s salt deposits were discovered during a quest for oil in 1943. Since extraction started in 1976, the city has been pierced by 35 mine shafts, the deepest reaching up to 2 kilometers (1.2 miles) below the surface.
The salt was first mined by Brazilian company Salgema, which in 1996 became Trikem, which in 2002 merged into Braskem.
One study from 2010 warned that higher underground pressure due to rock salt mining could cause the ground to sink, while subsequent research warned that subsidence caused by rock salt mining could reach up to 1.5 m (4.9 ft) in parts of Maceió. Yet, salt extraction continued as before.
“The extraction of rock salt in Maceió has always been internally and externally monitored, using the best techniques available, supervised by the competent public bodies and with all the necessary permits,” Braskem PR consultant Nicolas Tamasauskas said in an email to Mongabay. “Following the events in 2018, Braskem stopped extracting and presented a permanent closure plan that was accepted by the national mining authorities.”
As a result, since 2018, more than 14,000 premises, including homes, companies, churches and schools, have been declared unfit for habitation in the five suburbs. More than 60,000 inhabitants were forced to leave their homes. More than 4,500 people lost their businesses. Thousands had to look for alternative jobs, schools, sport clubs and health clinics.
Ferreira said the move felt abusive. “It felt like a second act of violence, as we were never consulted. We were left totally vulnerable, while Braskem was free to dominate the negotiations and establish derisory values.”
Victims claim insufficient compensation
In January 2020, Braskem reached a settlement with public prosecutors and in cooperation with the authorities launched the Financial Compensation and Relocation Support Program. Through it, Braskem helps residents search for a new home, pays for relocation and offers a temporary rental allowance of 1,000 reais ($200) per month.
Braskem works with so-called “facilitators,” who appraise properties, assist with paperwork and eventually negotiate with residents the final value of their properties. Compensation covers that value plus 40,000 reais ($7,822) for “moral damages.”
The company has allocated a budget of 14.4 billion reais ($2.8 billion) to deal with the disaster. It already spent 9.2 billion reais ($1.8 billion), some two-thirds of which was paid as compensation for damage to private and public properties. The remainder mainly concerned the process of closing the mines.
“There were no negotiations,” said Alexandre de Moraes Sampaio, president of the Association of Entrepreneurs and Victims of Mining in Maceió. “Braskem prepares a proposal, which you accept or not. If you don’t, as I did, then it turns silent for six months before you hear from them again.”
Sampaio owned a real estate agency and a small marketing company in Pinheiro, while his wife had a psychological practice. Pinheiro was the first Maceió neighborhood to experience cracking and degradation in 2018. Braskem offered them one payment for all three entities.
“I don’t want to go into detail, but it was a ridiculously low amount,” Sampaio told Mongabay. “In the end I received more, but it was still nothing compared to my real losses. However, after three years of negotiating, with hardly any income, I had no choice but to accept.”
Sampaio was on the brink of bankruptcy. Today, he lives some 100 km (62 mi) south of Maceió, where he has managed to revitalize his real estate firm. Most victims found themselves in a weak negotiating position, as they had been forced to leave their properties.
Disaster zone much larger
Ferreira also negotiated for three years to receive compensation for her Bebedouro home. “It was shameful what Braskem offered,” she said. “In most cases, Braskem offered a sum that amounted to not even half the property’s value, which made it very hard to find something similar elsewhere.”
According to Sampaio, damages related to the mining disaster have been reduced to “land and stones,” as Braskem pays the bare minimum for properties, disregarding many other costs.
“The compensation for moral damages is a mere pittance,” he said. “Braskem … should pay a higher amount to every victim, not just owners.”
Sampaio said that the 1.7 billion reais ($332 million) compensation Braskem paid the Maceió municipality was below par, as it did not account for things as lost income from taxes and lost utilities and infrastructure. “Braskem arguably should have paid four times more,” he said.
Damages exist even outside the disaster zone. The difference between what is considered safe and uninhabitable is at times only a street wide. A restaurant or company located safely “across the street” that lost half its market due to the relocation of 60,000 people receives nothing.
“Insurance companies no longer insure properties in a radius of 1 km [0.6 mi] around the designated disaster zone,” Sampoio said. “As a result, some 40,000 dwellings lost 30% of their value. Yet, none of this is compensated.”
Braskem now owns the city
In December 2023, Intercept Brasil unveiled a leaked compensation agreement, containing several special clauses. First, the signatory is not allowed to disclose the amount of compensation, otherwise Braskem can reclaim the payment.
Second, to finalize the compensation agreement, all property deeds must be handed over to Braskem. As a result, the chemical company today owns 99% of the disaster area. People in Maceió fear that Braskem aims to turn the disaster into an opportunity for future development.
According to Tamasauskas, that is not the case. He pointed at an agreement signed by Braskem and the Maceió municipality, which states the former “will not build in uninhabitable areas for housing or commercial purposes. And a change in ownership will not change that.”
Brazilian construction giant Novonor is Braskem’s majority owner, followed by Petrobras. Formerly known as Odebrecht, Novonor is in talks with the Abu Dhabi National Oil Company to sell its Braskem stake for an estimated $2 billion.
A third clause in the contract states that no one can sue Braskem on the outcome of a current or future investigation. In December 2023, a parliamentary inquiry into Braskem’s handling of the mining disaster was launched.
Finding justice abroad
In 2020, eleven victims sued Braskem in the Dutch city of Rotterdam, where the firm’s European head office and two financial holdings are based. The claimants demand that Braskem will be held liable for the disaster and needs to pay for damages.
“Braskem’s financial compensation program has been criticized for failing to hold Braskem liable for the disaster it caused,” said Bruna Ficklscherer, legal director of Pogust Goodhead, the British law firm representing the eleven victims.
Ficklscherer confirmed that people affected by the disaster, yet located outside the designated disaster zone, have had no opportunity to receive compensation, even though education, employment, health services and transportation have deteriorated in the neighborhoods surrounding the risk area.
Braskem tried to have the case dismissed by arguing the Dutch court lacked jurisdiction, as the case solely concerned Brazil. But the judge rejected the claim, on the grounds that the company has financial entities and its European head office in Rotterdam.
During the first hearing in February, Braskem consistently referred to the mining disaster as “the geological event,” while it presented the compensation program as the most beneficial possible. The eleven claimants argued the exact opposite. The Dutch court is expected to issue a verdict in towards the end of the year.
Meanwhile, Maceió’s worries are all but over. On Nov. 28, 2023, a rupture occurred in Braskem’s mine 18 in the neighborhood of Mutange. A week later, part of the suburb had subsided by almost 2 m (6.6 ft).
Fearing immediate collapse, the authorities declared a state of emergency, even though the area had been vacated. Today, nothing remains of Mutange. Braskem’s bulldozers have razed the neighborhood to the ground.
Many of the walls still standing in Bebedouro, and elsewhere in Maceió’s disaster area, are now covered in graffiti. “Here lived art, happiness, sadness and disaster,” one reads; another simply reads, “justice.”
