Much depends on how we do mining – by Kate Heartfield (Ottawa Citizen – June 6, 2013)

http://www.ottawacitizen.com/index.html

Kate Heartfield is the Citizen’s deputy editorial pages editor.

The Canadian-owned Kumtor gold mine accounted for 12 per cent of Kyrgyzstan’s GDP in 2011. Canadians agonize over the bureaucratic changes at CIDA, about how best to go about ending poverty, and meanwhile a Canadian company that isn’t even a household name — Centerra Gold — is responsible for a big chunk of a developing country’s economy.

And as the recent protests and roadblock showed, as the mine goes, so goes Kyrgyzstan’s national politics. If Canada is going to make a notable difference in global development and security over the next few decades, it’s going to be in places like the Kumtor mine.

The UN’s “high level panel of eminent persons” recently reported on what the world’s development goals should be after 2015. How do we maintain or even accelerate the unprecedented reduction in global poverty that has marked the beginning of this century? Globally, the extreme-poverty rate has been cut in half over the last 20 years; that amounts to nearly a billion people pulled out of dire need. Another billion, though, are still extremely poor.

As the Economist pointed out recently, those two decades have taught us valuable lessons about how to reduce poverty. Basic social safety nets, infrastructure and governance are one part of the puzzle; liberalizing trade and investment is another.

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Conservationists launch second legal action against Tasmanian mining plans – by Karl Mathiesen (The Guardian – June 6, 2013)

http://www.guardian.co.uk/

Save the Tarkine group claims the proposed Riley Creek iron-ore mine would put endangered Tasmanian devils at risk
Australian conservationists on Wednesday lodged a second legal action against mining proposals in Tasmania, claiming that endangered Tasmanian devils are being put at risk.

Save the Tarkine co-ordinator, Scott Jordan, alleged that the local government approval process had been “fudged” in order to expedite the Riley Creek iron-ore mine.

“As often happens in Tasmania, when it doesn’t suit the company they toss the rules out the window and do the assessment that they need to get the thing done,” he said. Riley Creek is located in the Tarkine region in Tasmania’s north-west, a bitterly contested landscape where 10 mines are scheduled to open over the next five years.

Tension has been rising with large pro-mining rallies held in communities that see mining as an economic lifeline. The region has the highest unemployment figures in Tasmania, the state with the highest unemployment in Australia.

The Tarkine is the last area that remains free of devil facial tumour disease, a contagious cancer that has killed more than 80% of the world’s Tasmanian devil population. Environmentalists say the impact of mining on devils will be significant.

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Strateco waits for court ruling on funding for [northern Quebec] Matoush project – by Robert Gibbens (Montreal Gazette – June 5, 2013)

http://www.montrealgazette.com/index.html

Strateco Resources Inc. will probably know by month’s end whether it must shut down its Matoush uranium mining project 275 kilometres North of Chibougamau because of a Quebec government moratorium that freezes underground exploration indefinitely.

The Ministry of Sustainable Development, Environment, Wildlife and Parks has decided not to issue a certificate of authorization for the Matoush project until the province’s Bureau d’audiences publiques sur l’environment has submitted its report on the uranium mining industry’s activities in the province.

“That means there will be lengthy delays and even more uncertainties about the high-grade Matoush project after $123 million of investment and seven years of solid exploration and development,” CEO Guy Hebert said.

The Canadian Nuclear Safety Commission, the federal regulator, earlier approved Strateco’s move to drill underground to 300 metres depth, he said (interview). “The Commission supervises every exploration and development step you take and it has ruled Matoush is safe with today’s technology,” he added.

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Centerra mulls offering stake in Kumtor mine to Kyrgyz government amid violent protests – by Peter Koven (National Post – June 5, 2013)

The National Post is Canada’s second largest national paper.

TORONTO – As it faces a barrage of nationalization threats in Kyrgyzstan, Centerra Gold Inc. is studying a possible solution: giving the government a direct stake in its flagship mine.

Centerra revealed Tuesday that it negotiating a potential transaction with the Kyrgyz government that would convert the state’s 32.7% ownership of Centerra shares into direct ownership of the Kumtor mine through a joint venture.

The talks come amid a major crisis for Centerra. Last week, the Toronto-based miner had to temporarily shut down Kumtor after hundreds of protestors set up a roadblock near the mine and shut down a substation that was providing grid power.

The government later declared a state of emergency as hundreds of protestors clashed with riot police near Kumtor. The mine has since re-opened and the road is now clear again. “Probably by today or tomorrow, we’ll be at full capacity again,” said John Pearson, Centerra’s vice-president of investor relations.

The protestors were demanding that the government’s 2009 investment agreement with Centerra be torn up, with some calling for outright nationalization.

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Greek opponents of Eldorado mine take message to company’s Canadian HQ: ‘Leave us alone’ – by David P. Ball (Rabble.com – June 4, 2013)

 http://rabble.ca/

Greek villagers brought their region’s fierce battle against Vancouver-based Eldorado Gold to the firm’s headquarters Friday, marking the end of the activists’ cross-Canada tour opposing open-pit gold mining in their homeland.

Over the past year, a growing conflict in Greece’s Halkidiki region — birthplace of the philosopher Aristotle — has seen thousands of residents blockade roads, raid mine sites, and skirmish with police they say are corrupt and beholden to the company. Another demonstration brought 20,000 protesters to the streets of Thessaloniki.

“Our will will not be curbed,” said Maria Kadoglou, a resident of Ierissos village, Greece. “We will keep on fighting until Eldorado Gold goes away.”

“Eldorado has been trying for a very long time to conceal from the Canadian public and its own investors that fact that there is huge resistance to its operations in Greece. When demonstrations got so big that they could no longer deny it any more … they have been saying the people protesting are anarchists, radical leftists, that we are flying in protesters from other parts of Greece; this is totally false. This is a genuine local resistance movement.”

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MININGWATCH NEWS RELEASE: Complaint Asks Ontario Securities Commission to Investigate Tahoe Resources After Wiretap Evidence Implicates Employees in Violence at Guatemala Mine

http://www.miningwatch.ca/

Monday, June 03, 2013 – Source: Justice and Corporate Accountability Project (JCAP) – MiningWatch Canada

(Toronto/Ottawa) On Friday, the Justice and Corporate Accountability Project (JCAP) submitted a complaint to the Ontario Securities Commission regarding Tahoe Resources’ (TSX: THO; NYSE: TAHO) poor disclosure about violence in connection with the company’s only mine project in southeast Guatemala.

On April 27, security personnel shot and wounded six people gathered outside of the Escobal mine site. Wiretap evidence gathered under orders of the Guatemalan public prosecutor’s office has implicated company employees.

According to the wiretap evidence, Tahoe’s Security Manager Alberto Rotondo ordered the mine security to attack the protestors. Mr. Rotondo has been charged with causing serious and minor injuries and obstructing justice, which included tampering with evidence at the site of the crime. He is currently under house arrest and awaiting an evidentiary hearing in July 2013.

The security advisor for the company, Juan Pablo Oliva Trejo, has also been apprehended in connection to the attack and charged with concealing a crime. According to wiretap evidence, he helped Mr. Rotondo mobilize in the days following the attack, warning him to leave the country to avoid facing legal problems.

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Glencore fires 1,000 workers over wildcat strikes in S.Africa – by by Agnieszka Flak (Reuters U.K. – June 3, 2013)

http://uk.reuters.com/

JOHANNESBURG – (Reuters) – Glencore Xstrata Plc sacked 1,000 workers across three of its chrome mines in South Africa for going on illegal strike last week, bringing those operations to a standstill, the company said on Monday.

The dispute at the mines near Steelpoort, northeast of Johannesburg in Limpopo province, added to long-running friction in the mining industry that has caused production to slow, raised concerns about Africa’s largest economy and sent the rand to fresh four-year lows.

Chromium is a raw material used to produce ferrochrome, a key ingredient to make stainless steel. “About 1,000 of the employees who have participated in the unprotected (illegal) strike have been dismissed,” said Christopher Tsatsawane, a spokesman for the company’s chrome operations.

The strike, which started last Tuesday, was continuing, but supplies to customers were not yet affected, he added. The workers have until Tuesday to appeal the dismissals.

South Africa has well-defined processes for launching strikes and those who fail to get formal approval can be sacked.

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Hundreds storm office of Canadian Centerra mine in Kyrgyzstan, 55 wounded in clashes – by Leila Saralayeva (Associated Press/National Post – June 1, 2013)

The National Post is Canada’s second largest national paper.

BARSKOON, Kyrgyzstan — Hundreds of stone-throwing protesters besieged a Canadian gold mine in Kyrgyzstan on Friday, clashing violently with riot police and prompting the president to declare a state of emergency.

Over 50 people were wounded and 80 detained in the clashes, authorities said. The protest also triggered widespread unrest in the southern city of Jalal-Abad, where hundreds stormed the governor’s office.

The twin developments threatened further turmoil in this impoverished Central Asian nation of five million, which hosts a U.S. base supporting military operations in nearby Afghanistan. Protesters want the northeastern Kumtor gold mine to be nationalized and the company to provide more benefits.

The mine, operated by Toronto-based Centerra Gold, is the largest foreign-owned gold mine in the former Soviet Union. It accounts for about 12% of the nation’s economy and has been at the centre of heated debate between those favouring nationalization and officials who believe that would deter much-needed foreign investment.

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Mining bill calls for local processing and more transparency – by Kevin Dougherty (Montreal Gazette – May 30, 2013)

http://www.montrealgazette.com/index.html

Companies would have to pay full cost of restoring sites

The Parti Québécois government has presented its long-awaited Mining Act in the Quebec National Assembly. Bill 43 would require mining companies to put up 100 per cent of the cost of restoring mining sites to their natural state once the work is complete and calls for more processing of minerals in the province as a condition for granting a mining lease.

All mining projects would have to pass an environmental assessment, and the bill calls for dialogue between mining companies and nearby communities. In the name of transparency, mining companies would have to make public the tonnage of minerals extracted and the amount of royalties paid to the province.

Companies would have to make public their claims within 60 days and reveal operating plans 90 days before work starts.

Martine Ouellet, the PQ minister of natural resources, said it took almost nine months to frame Bill 43 because she consulted the mining industry and municipal governments about exclusion zones, where mining would not be allowed.

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MiningWatch Canada News Release: Imperial Metals Operating Without Consent: First Nations Oppose Mining on Indigenous Lands

 http://www.miningwatch.ca/

Wednesday, May 29, 2013

(Vancouver, Unceded Coast Salish Territories) – Today, members of the Neskonlith Secwepemc Nation and Ancestral Pride Ahousaht Sovereign Territory will join other First Nations and allies in voicing opposition to Imperial Metals (TSX: III) operations across British Columbia.

According to Janice Billy of the Secwepemc Nation, “We will be making our voice’s heard at the companies annual general meeting in Vancouver. In our territory as elsewhere, the company has not followed Canadian or international standards and legal obligations to obtain the free prior informed consent of the Indigenous peoples affected by its projects.”

The Ruddock Creek project is located near Tum Tum lake in the headwaters of the Upper Adams River. The project is in the advanced stage of exploration but has not obtained the consent of Neskonlith for current or any future activities. The Secwepec territory includes the Adamas River Watershed – home to the world’s largest sockeye salmon run and the location of Imperial’s Ruddock Creek lead and zinc project. The area is of great importance to the Neskonlith who continue to use and occupy the area for hunting, gathering, education and ceremonies. In addition to being the headwaters of the Adams River, the area is also home to threatened mountain caribou and grizzly bear populations.

“As part of the Secwepemc Nation, the Neskonlith retain Aboriginal title and rights to their territory and have never surrendered the land to British Columbia,” further states Billy.

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Copper-nickel mining divides Ely [Minnesota] residents – by Dan Kraker (Minnesota Public Radio – May 31, 2013)

http://minnesota.publicradio.org/features/

ELY, Minn. — The polarizing divide over the future of mining around Ely will be on display this weekend, when an anti-mining group opens shop on Sheridan Street, the canoeing mecca’s main drag.

Workers in the new center, dubbed “Sustainable Ely,” will encourage tourists to take action urging President Barack Obama to protect the region’s environment from copper-nickel mining. They also want people to urge Gov. Mark Dayton’s administration to expand a mining protection zone around the Boundary Waters Canoe Area.

Down the street from tourist shops like Mostly Moose and Loony’s Northwoods Emporium, the new center houses a shiny Wenonah canoe dotted with several signatures scrawled in black marker. Anti-mining activists aim to gather thousands more.

“We hope to portage this down the mall in Washington, D.C., and present it to President Obama, and ask him to protect the Boundary Waters watershed from sulfide ore mining,” said Becky Rom, a retired attorney who is among nearly 100 contributors to the center.

Although the center’s organizers see mining as a major environmental threat, many in town believe it copper-nickel mining can be done safely and jumpstart the region’s economy.

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Kyrgyzstan protesters storm Canadian mining office – The Associated Press/CBC News World (May 31, 2013)

http://www.cbc.ca/news/world/

Centerra Gold’s electricity cut off after rioters enter transformer unit

Kyrgyzstan has imposed a state of emergency on a northern district after clashes between riot police and protesters over Centerra Gold’s Kumtor mine.

Hundreds of protesters in Barskoon stormed the office of a gold mine run by the Canadian-based company, demanding its nationalization and more social benefits.

Protests at the Kumtor mine operated by Centerra Gold have been going on for several days. Police arrested 80 people Thursday night after several hundred, some on horseback, entered a power transformer unit and cut off electricity to the mine for several hours. That effectlvely prevented the mine from shutting down.

Centerra says the protests are illegal and that it is working with the government and local authorities to resolve the situation. President Almazbek Atambayev imposed the state of emergency and a curfew on Dzhety Ohuz district of the Issyk Kul region until June 10, his office said.

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Kyrgyzstan imposes state of emergency to protect Centerra mine – by Olga Dzyubenko (Reuters U.S. – May 31, 2013)

http://www.reuters.com/

BISHKEK – (Reuters) – Kyrgyzstan’s government imposed a state of emergency on a northern district on Friday to protect Centerra Gold’s Kumtor mine from protesters.

Police on Friday cleared away demonstators who had been blocking the road to Kumtor for days and arrested 92 people, Prime Minister Zhantoro Satybaldiyev told a news conference.

A few hours later police used tear gas and stun grenades in clashes with villagers who tried to seize a substation and cut power supplies to the mine, a police spokesman said. Several protesters were hurt.

Hundreds of villagers had blocked the road to Kumtor, in Dzhety Oguz district, on Tuesday afternoon and threatened to move on the mine if the government did not tear up its agreement with the company.

President Almazbek Atambayev imposed the state of emergency and a curfew on Dzhety Ohuz district of the Issyk Kul region until June 10, his office said. “Those who broke the law must be brought to justice in line with the full severity of the law,” it quoted Atambayev as saying during a meeting with security officials.

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Canadian mine giant Barrick fined a record $16.4M in Chile – by Canadian Press/CBC News (May 25, 2013)

http://www.cbc.ca/news/business/

Native population complains of cancerous growths and aching stomachs

The Diaguita Indians live in the foothills of the Andes, just downstream from the world’s highest gold mine, where for as long as anyone can remember they’ve drunk straight from the glacier-fed river that irrigates their orchards and vineyards with its clear water.

Then thousands of mine workers and their huge machines moved in, building a road alongside the river that reaches all the way up to Pascua-Lama, a gold mine being built along both sides of the Chile-Argentine border at a lung-busting 5,000 metres above sea level.

The crews moved mountaintops in preparation for 25 years of gold and silver production, breaking rocks and allowing mineral acids that include arsenic, aluminum and sulfates to flow into the headwaters feeding Atacama desert communities down below.

River levels dropped, the water is murky in places and the Indians now complain of cancerous growths and aching stomachs. There’s no way to prove or disprove it, but villagers are convinced Barrick Gold Corp. is to blame for their health problems.

“We don’t know how much contamination the fruit and vegetables we eat may have,” complained Diaguita leader Yovana Paredes Paez. “They’re drying up the river, our farms aren’t the same. The animals are dying of hunger. Now there’s no cheese or meat. It’s changed completely.”

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Well intentioned ‘blood mineral’ provision backfires – by Lauren Cook (Medill News Service/UPI.com – May 24, 2013)

http://www.upi.com/

A U.S. law that imposed an embargo on mineral trade used to finance Congolese armed groups has backfired, affecting the region’s poorest artisanal miners.

WASHINGTON, May 24 — A provision in the Dodd-Frank financial reform law aimed at reducing money to militia groups in the Democratic Republic of the Congo by imposing rules on buying minerals from the region has backfired, exacerbating and depriving at least 1 million subsistence miners of their livelihood, several experts told a congressional committee Tuesday.

“Dodd-Frank 1502, the conflict minerals provision … is a case study in how good intentions can go awry,” said David Aronson, panel member and editor of CongoResources.org. “The law imposed a de facto embargo on mineral production that impoverished the region’s million or so artisanal miners; it also drove the trade into the hands of militia and predatory Congolese army units.”

The original intent of the conflict mineral provision, or Section 1502, was to reduce financing opportunities for the militia groups in the Congo’s mineral market by establishing disclosure requirements for companies that use minerals like gold, wolframite, casserite, columbite-tantalite and their derivative metals (tin, tungsten and tantalum) to make their products.

The companies are required to report the particular mineral’s origin. If the material is determined to be from the DRC — or if its source is unknown — they must notify the Securities and Exchange Commission.

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