by Deep Green Resistance News Service | May 15, 2012 | Biodiversity & Habitat Destruction, Mining & Drilling, Prostitution, Toxification, Worker Exploitation
By Paulina Abramovich / Agence France-Presse
A new gold rush is sweeping through Latin America with devastating consequences, ravaging tropical forests and dumping toxic chemicals as illegal miners fight against big international projects.
With international market prices for metals high, informal “wildcat” mining has been on the rise in recent years in countries like Bolivia, Colombia and Peru, itself one of the largest producers of silver, copper and gold.
Mining investments in those countries are expected to reach some $300 billion in 2020, according to the Inter-American Mining Society.
But over 160 mining conflicts have erupted across the region amid growing opposition from locals against projects they consider a threat to the environment, the Observatory of Mining Conflicts in Latin America says.
During the past decade, the price of gold went from $270 to between $1,600-1,800 per ounce, as people rushed to convert their cash into the precious metal seen as a safe investment during the global economic crisis.
And the price of copper is at an all-time high thanks to China’s insatiable appetite for it.
Unlicensed mining, especially for gold, has already killed hundreds of people and devastated thousands of hectares (acres) in the Amazon forest, where miners have set up camps that destroy everything in their path.
To extract each ounce of gold, it takes two or three ounces of mercury, which fouls waterways after being poured into rivers from the mining sites. In their search for water, the miners raze tropical forestsusing bulldozers.
The phenomenon has also sown disaster among the local population, with thousands of men, women and children exploited and living in squalid camps with no schools or health centers.
In Peru, an estimated 110,000 to 150,000 people work in illegal mines, while a thousand children are sexually exploited in brothels known locally as “prostibars” in the southeastern province of Madre de Dios, according to Save The Children.
The practice is particularly widespread in the improvised mining camps, where fortune-hunter try to make a living from the illegal exploitation of precious metals.
“There are dozens of prostibars, filled with hundreds of girls who were told they would make a lot of money,” said Teresa Carpio, director of Save the Children in Peru.
“It’s total exploitation of a human being. Living conditions are appalling and all human values are perverted.”
Indigenous and black communities have long used child workers for gold mining. And an estimated 200,000 to 400,000 children currently work in small-scale mining in Colombia, according to Alliance for Responsible Mining (ARM) data.
In Madre de Dios, one of the poorest regions of Peru, about 18 tonnes of gold are produced per year, while some 20,000 hectares (49,400 acres) of tropical forest are destroyed.
Thousands of people in Colombia have started exploiting abandoned mines in the northwestern department of Antioquia and Choco. In Bolivia, about 10,000 people make a living off the illegal mining of gold in extreme conditions, ARM says.
The growing thirst for mineral resources makes Latin America one of the most attractive regions for investment, set to dominate world production of precious metals by 2020.
Today, Latin America accounts for 45 percent of global copper production, 50 percent of silver and 20 percent of gold.
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by Deep Green Resistance News Service | May 14, 2012 | Mining & Drilling
By Terry Macalister and Lionel Badal / The Guardian
The International Monetary Fund (IMF) has been warned by its internal research team that there could be a permanent doubling of oil prices in the coming decade with profound implications for global trade.
“This is uncharted territory for the world economy, which has never experienced such prices for more than a few months,” the report warns.
The new IMF “working paper” come as the value of crude on world markets remains at the historically high level of $113 a barrel and just after the International Energy Agency reported that consumption would accelerate for the rest of this year in line with a wider economic recovery.
Undertaken amid mounting concerns about “peak oil”, the IMF study does not presume that there is a constraint on how much oil can be taken out of the ground. It prefers to believe that extraction rates will depend on the price that will be able to be charged for the final product.
“While our model is not as pessimistic as the pure geological view that typically holds that binding resource constraints will lead world oil production on to an inexorable downward trend in the very near future, our prediction of small further increases in world oil production comes at the expense of a near doubling, permanently, of real oil prices over the coming decade,” argues the report, entitled The Future of Oil: Geology v Technology.
The paper, which contains a warning that it should not be reported as representing the views of the IMF itself was nevertheless prepared by several authors including Jaromir Benes, a former head of macroeconomic modelling in the Czech National Bank but now employed by the IMF in Washington.
It says that its oil market “models” have been significantly more accurate than others in a world where predictability has been historically low. But it adds: “Our empirical results also indicate that if the model’s predictions continue to be accurate as they have been over the last decade… the future will not be easy.”
Meanwhile, the Paris-based International Energy Agency, which advises industrialised nations, including the UK on energy policy, said crude prices would remain high in 2012, due to tensions between Iran and the west. “The path of market fundamentals for the rest of the year remains highly uncertain and geopolitical risks will likely continue to keep prices high,” the agency said.
The agency believes that a period of declining demand – triggered by the slowdown in the global economy – is now over and the upward trajectory resumed.
The Opec oil cartel made similar statements a week ago, saying that oil demand growth had “stopped its declining trend”.
From The Guardian: http://www.guardian.co.uk/business/2012/may/13/oil-price-doubling-decade-imf
by Deep Green Resistance News Service | May 11, 2012 | Colonialism & Conquest, Indigenous Autonomy, Lobbying, Mining & Drilling, Toxification
By Fawzia Sheikh / Inter Press Service
An indigenous group in the Amazon rain forest took its anti-oil message to Canada in a case rife with accusations of social and environmental damage that highlights the issue of securing consent prior to commencing exploration operations.
Peas Peas Ayui, president of the National Achuar Federation of Peru (FENAP), told IPS through an interpreter that Calgary-based Talisman Energy Inc. is operating within its ancestral territory, covering one million hectares, without first seeking approval. The Achuar people live on both sides of the Peru- Ecuador border in the rain forest.
“The communities affiliated with FENAP reject the presence of the company” and have no interest in the “additional help or benefits” that Talisman can offer at the risk of environmental contamination, Ayui said.
During three previous visits to Canada, the indigenous leader has issued this message, in some cases meeting directly with Talisman management. The most recent trip featured discussions with government opposition leaders and members who expressed “solidarity” with FENAP’s aim to shut down the Calgary firm’s venture into its homeland, noted Ayui, buoyed by legislators’ resistance to the activities in the Amazon.
The delegation was accompanied by Amazon Watch, a San Francisco-based non-profit organisation that supports indigenous people and aims to protect the rain forest. Discussions with key stakeholders and interested parties in Canada took place from April 21 to May 8.
Talisman, however, shot back at Ayui’s trespassing claim and pointed to the Peruvian government’s permission to engage in oil exploration in certain regions.
Moreover, FENAP lands are based 25 kilometres east of the oil company’s activity area known as Block 64, said media relations adviser Berta Gomez, adding that her employer has used about 115 hectares for exploration activities representing .015 percent of the total area. The oil giant started working in the block in 2004.
“We respect that some communities are opposed to oil development and we will not work there,” Gomez emphasised.
Obtaining consent
While Amazon Watch purports to represent the voice of the Achuar in Peru, it actually speaks only for the FENAP, an Achuar federation comprised of a number of communities opposed to Talisman’s activities, she argued.
Within Block 64, the energy interest has won the support and approval of the FASAM and OSHAM Achuar federations, added Gomez, referring to two new offshoot organisations. Overall, she said, Talisman has agreements with eleven organisations representing 66 directly and indirectly affected communities, more than 1,800 families and five different ethnic groups.
“We are committed to early and ongoing engagement with all stakeholders to share plans and address concerns,” including key authorities, the ombudsman and third-party representatives who act as observers, she said.
Ayui, the FENAP leader, said he has asked that Talisman President and CEO John Manzoni attend a meeting in the Amazon where his company is exploring, but the company has requested discussions be held in a nearby town, requiring the indigenous group to travel for three days.
Gomez confirmed that a March 30 meeting took place for the first time among Talisman’s country manager and corporate affairs manager and indigenous leaders against oil and gas development in San Lorenzo, Peru, with a promise to attend a local indigenous assembly, probably in May, to establish a final agreement regarding land boundaries.
The case spurs important questions about the nature of free, prior and informed consent, which is rooted in the United Nations (U.N.) Declaration on the Rights of Indigenous Peoples, according to a 2011 report by Sustainalytics, a sustainability research and analysis company headquartered in Amsterdam.
The report questions what exactly constitutes the consent of affected indigenous communities – a band council resolution, a referendum, the agreement of community leaders or the approval of all constituents?
Complicating matters is the fact that the Peruvian government awarded concessions and blocks to oil companies without consulting or informing the Amazonian communities, which it has traditionally regarded as “second-class citizens”, states a report published last year by the Ottawa-based think tank, the North-South Institute.
Fostering strife among communities
Among the FENAP’s objections, moreover, is a claim that Talisman triggered social problems within the Amazon’s indigenous population.
FENAP leaders raised grievances with the Peruvian courts about Talisman’s creation of “conflicts and divisions” in connection to a May 2009 confrontation among Amazon groups that “almost ended in violence,” Ayui recalled, but there has been no response. Demands that the Peruvian Congress force the company to vacate the rain forest have also been unanswered.
In his view, the energy firm’s exploration operations have torn apart communities, as eight have opted to sign agreements granting permission to work on their land in exchange for development assistance, while 44 have not.
Based on the needs of federation leaders, Talisman offered “social contribution programs” to improve living standards, Gomez, the spokeswoman, said. Last November, she noted, Talisman signed social community agreements with 11 federations, providing $3 million in resources to fund education, health care, access to electricity, capacity building and local job-generation initiatives in 2012.
Despite the oil firm’s investment in communities, Gregor MacLennan, Amazon Watch’s Peru program coordinator, questioned its interpretation of gaining the free, prior and informed consent of indigenous peoples. He accused the company of winning approval in any way it can – even after indigenous groups initially say no – by presenting more money and resources.
For its part, Talisman has always engaged with all stakeholders in a direct and peaceful manner in full adherence to human rights principles, Gomez stated. However, she said, the oil firm also asks that “the rights of the people to choose to work with us, in an open and transparent fashion, also be respected”.
Talisman plans to maintain dialogue efforts with federations and communities opposing its activities.
Damaging the environment
Rounding out indigenous allegations against Talisman is environmental contamination. The Calgary firm touted new technologies with no risk of repeating the damage done by oil industry players operating in the Amazon in the 1970s and 1980s, but Ayui refuted the claim.
The exploratory wells have affected his community’s hunting and fishing grounds by producing waste which leaks into streams during the rainy season, he charged, and poisons birds and other animals. His people’s ancestors also died on the lands Talisman is now exploring, he added.
MacLennan told IPS that he addressed the drilling fluids issue during a February meeting with Talisman, which acknowledged the problem but explained it will take “several months” for the arrival of a subcontractor and the adequate equipment to undertake the clean-up to a specific standard, a task that includes correcting the poor waste-disposal job carried out by another oil company in the past.
Talisman meets, and in many cases surpasses, environmental regulations outlined by the Peruvian government, Gomez insisted. Waste products, or cuttings, are normally generated during drilling activities and have been “properly managed and stored according to environmental regulations and protection measurements” dictated under the oil firm’s environmental impact assessment, she said.
During the drilling of oil wells, the waste is stored in a “cuttings pit” complete with a roof to shield against rain water and a pit bottom protected with a “geomembrane” to prevent the direct contact of soil and waste, she noted, adding that the whole drilling pad is surrounded by an external ditch collecting fluid, mainly rain water, before it is released into the environment.
During Talisman’s drilling activities, known as SC3X and SN4X, there were no environmental incidents or claims from communities in the area of influence of its operations, Gomez said.
Talisman incorporates an indigenous environmental monitor from the local communities during the drilling projects. The monitor performs daily environmental inspections, immediately communicates problems, participates in monthly environmental monitoring and field environmental audits by regulatory agencies, helps to supervise the handling and shipping of waste and takes part in the abandonment activities and reclamation works, she added.
The company’s abandonment plan for the SC3X project, which details techniques for the treatment and final disposal of cuttings and an outline for re-vegetation and reclamation of the area, is awaiting Peruvian government approval, Gomez said.
Still, Amazon Watch and the FENAP are dissatisfied with Talisman’s environmental precautions and explanations. They dismissed oil companies’ tendencies to blame damage on subcontractors or on the challenges of working in the rain forest.
As the Canadian energy firm heads into a production phase within the next year, there are concerns that a potential spill due to human error would render the area “virtually irrecoverable”, MacLennan warned, spawning “an environmental disaster” destroying the livelihoods of thousands of people in the rain forest.
From Inter Press Service: http://ipsnews.net/news.asp?idnews=107718
by Deep Green Resistance News Service | May 10, 2012 | Mining & Drilling
By Amazon Watch
Grassroots opposition is mounting as ConocoPhillips’ plans to drill for oil within the fresh-water source for Peru’s largest rainforest city, Amazon Watch said today on the occasion of the company’s annual shareholder meeting in Houston, Texas. Conoco is currently advancing plans to drill exploratory oil wells in Blocks 129 and 123, found within one of the most ecologically sensitive regions in the world.
According to a May 2012 map produced by PROCREL, the Loreto regional environmental authority, ConocoPhillips is planning a total of 16 oil platforms and 48 wells between Block 129 and the adjacent Block 123. Thirteen of these platforms are found within the Upper Nanay-Pintuyacu-Chambira Regional Conservation Area.
“Conoco’s shareholders need to understand that the company’s plans in northern Peru are being met with increasing popular opposition across the region,” said Robert Collier, Corporate Campaigns Director at Amazon Watch. “The reputational risks for Conoco grow by the day.”
“The oil company’s installation and Block 129 in the Nanay watershed has alarmed us because we all know the consequences of oil extraction in other Amazonian watershed,” said José Manuyana, president of the social organization Colectivo Amazonía in today’s local paper La Región. “We know the devastating results and are worried this will happen in the Nanay headwaters which provide drinking water to all of Iquitos’ 500,000 citizens.”
In March of this year citizens of Peru’s Loreto region organized themselves into the Iquitos Water Defense Committee, specifically in response to Conoco’s plans. Today the Committee demanded that the regional government hold a public hearing to explain why they are allowing ConocoPhillips to advance with the exploration. They have also asked that information about Conoco’s plans be made public and that the Regional Government respect prior decisions to exclude mining activities from ecologically sensitive areas.
According to the Iquitos Declaration, issued by the Iquitos Water Defense Committee on April 24th of this year, “The situation is currently getting worse. ConocoPhillips has an oil concession in the headwaters of the Nanay River, even though the first article of the Regional Order No. 020-2009-GRL-CR of October 15th 2009 declared of regional public interest the conservation and protection of the headwaters of watersheds found in the Loreto Region. For us, this river is the primary source of water supply for the city and source of other resources like fish, bush meat, and wood for our house construction.”
International scientific experts are also expressing concern about the probable impacts of oil activities on this ecologically sensitive area. According to Bob Stallard, a bio geochemist who has sampled and analyzed waters from throughout the Amazon and Orinoco river basins since 1976, “Great cities try to protect their water supplies, and Iquitos has one of the best. Based on hundreds of published analyses of dissolved salts in rivers, the Nanay is among the purest rivers in Amazonia. Spills of formation waters and wastes associated with drilling could damage the Nanay as a drinking-water supply.”
The Iquitos Declaration cites information that seismic testing has carved 778 kilometers of lines through the jungle, clearing over 180 hectares of forest cover and detonating more than 15,500 seismic explosives. The statement continues, “now they are trying to get the approval to drill 18 exploratory wells that would function from six platforms within Block 129.”
“Biodiversity in the Nanay basin is spectacular. In three weeks we recorded more than 1,800 species of plants and animals. Because the Nanay River begins in the Peruvian lowlands – not in the Colombian or Ecuadorian Andes like many other rivers in Loreto – it created a singular opportunity to conserve almost the entire watershed,” said Corine Vriesendorp, Ph.D., Director of the Andes-Amazon Program at The Field Museum in Chicago. “Clean water and robust fisheries were the rallying cries for creating the regional conservation area. Now oil activities threaten to negatively impact both water quality and fish stocks, critical for forest dwellers in the Nanay basin and urban residents in Iquitos.”
From Amazon Watch: http://amazonwatch.org/news/2012/0509-conoco-drilling-threatens-water-source-for-half-million-in-peru
by Deep Green Resistance News Service | May 9, 2012 | Mining & Drilling, Toxification
By Natural Resources Defense Council
All currently available options for dealing with contaminated wastewater from fracking are inadequate to protect human health and the environment, but stronger federal and state protections can better safeguard against the threats posed by this byproduct, according to a new report from the Natural Resources Defense Council (NRDC). The report reveals how gas companies in Pennsylvania disposed of more than 30 million gallons of wastewater last year and details the dangers presented by the disposal methods used.
“Contaminated wastewater has long been one of our biggest concerns about fracking, and this report confirms that current practices put both the environment and public health at risk,” said NRDC attorney Rebecca Hammer. “Americans shouldn’t have to trade their safe drinking water for fuel. We need strong safeguards on the books to ensure oil and gas companies aren’t polluting our rivers, contaminating our drinking water or even risking man-made earthquakes when they come to frack in our communities.”
The report, In Fracking’s Wake: New Rules Are Needed to Protect Our Health and Environment from Contaminated Wastewater, represents one of the most comprehensive reviews to date of the available options for disposing high-volume wastewater from fracking. It analyzes wastewater disposal practices in Pennsylvania last year, and provides recommendations for better protecting public health and the environment nationwide. It was co-authored by NRDC and an independent scientist.
Wastewater Disposal Methods
The five most common disposal options for fracking wastewater currently in use are: recycling for additional fracking, treatment and discharge to surface waters, underground injection, storage in open air pits, and spreading on roads for ice or dust control. All of these options present significant risks of harm to public health or the environment. And there are not sufficient rules in place to ensure any of them will not harm people or ecosystems.
Some of these methods present such great threats that they should be banned immediately. These methods include treatment at municipal sewage treatment plants and subsequent discharge into surface waters, storage in open air pits and road spreading. Meanwhile recycling for reuse in fracking operations and underground injection into properly designed and sited disposal wells (that better protect against groundwater contamination and seismic activity) hold the most potential for improvement if strong safety standards are instituted for these methods.
Treatment at industrial facilities faces significant hurdles that may also be addressed with improved safeguards. But it would still remain a less preferable disposal method for a number of reasons, perhaps the most significant of which is the risks it would still pose to people’s health in the event of a misstep, as the treated wastewater is dumped into waterways that provide drinking water.
Pennsylvania Wastewater Disposal in 2011
In Pennsylvania, a majority of the state’s wastewater last year was released into bodies of water—including drinking water supplies—as a result of poor treatment practices. More than half of all fracking wastewater was sent to treatment plants—either industrial facilities or municipal sewage plants. Of this, about 10 percent—or more than 2 million gallons—was sent to facilities that that the state has exempted from its most current water pollution limits, meaning it could be discharged with higher levels of contaminants than waste processed at updated plants.
When this wastewater is sent to municipal sewage facilities, harmful chemicals and other pollutants are merely diluted, rather than removed, and then released into surface waters, posing serious threats to the state’s rivers, lakes and streams, as well as drinking water supplies. Industrial facilities, too, are often not designed to treat the contents of the wastewater, and can also release it into waterways or send it for reuse, after it is processed. Complete information about where industrial facilities sent processed wastewater in Pennsylvania last year was not made available by the state.
Additionally, about one-third of Pennsylvania’s fracking wastewater in 2011 was recycled for reuse in fracking, and about 10 percent was disposed of by underground injection (the majority of which took place in Ohio). The remaining less than 1 percent was reported to be in storage pending treatment or disposal, though information was not available on whether it was in open air pits or enclosed tanks. An unknown amount was applied (typically after only partial treatment) to roadways for ice or dust control, where it is often carried into nearby waterways when it rains or snow melts.
The problem of what to do with this byproduct is growing as the volume of wastewater continues to increase rapidly with the expansion of fracking in the Marcellus Shale formation and nationwide. In Pennsylvania alone, total reported wastewater volumes more than doubled from the first half of 2011 to the second half.
The wastewater disposal methods most commonly used in Pennsylvania differ largely from other parts of the country. On average nationally, 90 percent of wastewater is disposed of in injection wells. The Marcellus Shale region, however, poses particular problems because the geology cannot accommodate large volumes of injected wastewater. Therefore, gas companies there have to ship large quantities of it elsewhere.
“Pennsylvania and the entire Marcellus Shale region have geological limitations that make wastewater disposal a particularly vexing problem for the area,” said Kate Sinding, senior attorney at NRDC. “But the lessons learned there are applicable nationwide. It is critical states in this region that are already fracking clean up their act fast. And states like New York, where gas companies are still knocking on the door, must not let them in until they get this right.”
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