Showing posts with label environment. Show all posts
Showing posts with label environment. Show all posts

Monday, May 9, 2011

Peru's Madre De Dios gold enviro disaster is now out of the limelight so not surprisingly....

...production is picking up again.
And what was that about this two-faced piece of crap government caring about the Amazon basin wasteland being created again? What it does care about is the $83m worth of gold that comes out of that hellhole in the month of March (that's just the officially declared production, so double it at the very least to get the real idea).

 Numbers from here

Tuesday, April 19, 2011

Madre de Dios: A new academic paper on the region's destruction

We've covered the ecological disaster area called Madre de Dios on many occasions here on the blog and it since we started the issue of the destruction of the Amazon rain forest due to the search for gold has started to get picked up by real media services that reach a wider audience. But I'm happy to say that the world of academia is also starting to care more, with a new paper out today headed by Jennifer Swenson of Duke University putting the spotlight on MDD and its enviro trainwreck that nobody in Peru with any power cares about (they just want the freakin' money).

Here's the link to the paper and here's the abstract to get you in the mood. We applaud Swenson and company for the good job done.

Many factors such as poverty, ineffective institutions and environmental regulations may prevent developing countries from managing how natural resources are extracted to meet a strong market demand. Extraction for some resources has reached such proportions that evidence is measurable from space. We present recent evidence of the global demand for a single commodity and the ecosystem destruction resulting from commodity extraction, recorded by satellites for one of the most biodiverse areas of the world. We find that since 2003, recent mining deforestation in Madre de Dios, Peru is increasing nonlinearly alongside a constant annual rate of increase in international gold price (~18%/yr). We detect that the new pattern of mining deforestation (1915 ha/year, 2006–2009) is outpacing that of nearby settlement deforestation. We show that gold price is linked with exponential increases in Peruvian national mercury imports over time (R2 = 0.93, p = 0.04, 2003–2009). Given the past rates of increase we predict that mercury imports may more than double for 2011 (~500 t/year). Virtually all of Peru's mercury imports are used in artisanal gold mining. Much of the mining increase is unregulated/artisanal in nature, lacking environmental impact analysis or miner education. As a result, large quantities of mercury are being released into the atmosphere, sediments and waterways. Other developing countries endowed with gold deposits are likely experiencing similar environmental destruction in response to recent record high gold prices. The increasing availability of satellite imagery ought to evoke further studies linking economic variables with land use and cover changes on the ground.

continues here

There's been a decent media reaction to the Swenson & Co paper too, which you can also check out on this link.

Tuesday, March 8, 2011

Madre De Dios: The Peru gov't bullshit never stops

So today we had the lapdog Peruvian Environment Minister, Antonio Brack-Egg (crazy name, crazy guy) stating that he was looking to promote alternatives to mercury for gold extraction/refining in the enviro-wasteland Madre de Dios region. Apparently he's all concerned all of a sudden (because the disaster area is finally making headlines) and also ssay that part of his protfolio is to recover the 32,000 heactares lost to the goldrush so far. 

This is utter tripe as usual. Let's look at the latest official production figures out of MDD, according to the Mining Ministry and while we do, keep in mind that the unofficial production is estimated to match the official numbers. Here's the monthly production from MDD....


...and this chart (featured before) is the one that takes official MDD production as a percentage of Peru's total product.

So yep, it's got slightly better in the last two months since that jawdropping spike, but it's still way way above the historical average for the region and there's still scant progress being made by Peru to combat this filth. The reason for that is simple enough; The bunch of two-faced moneygrabbers running the country don't give a rat's ass. DYODD

Wednesday, March 2, 2011

Two from Peru's Madre De Dios golden cesspool

1) Hey, remember a couple of weeks back when Peru's government made world headlines by clamping donw on the illegal dredging for gold in the Madre De Dios (MDD)? How it blew up the ships that were dredging for gold-rich sands, throwing the mercury contaminated waters straight back and generally screwing up the entire ecosystem? And that bit about how it was planning on destroying 300 illegal dredging operations? Yeah well, this is Peru where money talks and governmental bullshit walks, so yesterday after getting rid of just 35 of these disgusting machines the whole operation was halted after a 5000 strong demo of locals that wants the dredging to continue was met full on by government armed forces on the new Transoceanic highway and the clashes left two dead and many injured.

2) Via Setty, an excellent report from the UK Daily Telegraph (a rarity in itself) about the life in gold rush MDD. This is must-read material but here's the same excerpt Setty used in his post. As he said, stomach-churning.
She was speaking from a refuge, the only one of its type in the area; only 72 girls have made it here since October 2008. It is a simple wooden building on a side street in the chaotic town of Mazuko, the main entry point into the Madre de Dios region, a couple of blocks away from the highway. It was late in the evening and Teresa was waiting impatiently for her parents to arrive from Lima to pick her up.
‘I was lost, I didn’t know where I was,’ she continued. ‘At night everything is dark, there are no lampposts or anything. The policeman told me that it was a miracle that I had escaped because no one can usually; they rape you and throw you in the jungle.’
Hey folks, don't forget that 15% of all the gold produced in Peru comes out of MDD....and that's just the legal production that's registered with the Mining Ministry.

¡Viva Investment Grade Peru!

Wednesday, December 8, 2010

Peru again fakes caring about the Madre De Dios gold hellhole

Today Peru, via an executive decree, announced it was suspending all petitions for new mining licences in the Madre De Dios region of the Amazon basin that is currently being decimated by a boom in the worst sort of enironmentally poisonous gold mining possible (see previous coverage). The govt's Andina newswire begins this way (translated):

Lima, December 8 (ANDINA): The Ministry of Energy and Mines (MEM) today published an exective decree that prolongs until 31 December 2014 the suspension of the admission of mining petitions in the gold exclusion zone established in the Madre de Dios department.


In March 2010 MEM suspended the admission of mining petitions in Madre de Dios until 31 December 2010.


The measure is to complement the Executive emergency decree published in February that declared the re-ordering of mining in Madre de Dios in the national interest and established that in the exclusion zones no mining or exploration activities will be permitted.


The objective of the exclusion zones is the conservation of first growth forest, of  CONTINUES HERE.

It all sounds very eco-friendly, doesn't it? The gov't does its thing, stops new mining and cracks down on the parabolic growth in the disaster in motion, we all live happily ever after. Unfortunately it's all BS lip-service to appease those who are actually stupid enough to believe what these liars say. As you may recall, the problem isn't the legal miners there, it's the total lack of control the government has over the illegal artisanal mining. As this chart shows, since that "emergency decree" came into force back in February, production out of MDD has shot up and now accounts for 18.8% of the country's gold production, double (yes, double) the number in less than a year. 

And what had Peru done about the illegal mining? What kind of crackdown on the 300 people a day (seriously) that are moving into the area to exploit the gold and be exploited themselves? Nothing zip zero nada (surprise). It's typical Twobreakfasts Peru: Say one thing, do another, screw the environment into the ground, hope nobody notices and go for the cash. Viva Investment Grade.

Wednesday, September 8, 2010

Peru is a third world country according to Alan García

Back in April this year, when the illegal mining that's destroying the Peruvian Amazon jungle managed to keep the world's attention for more than 15 minutes, President Twobreakfasts said that (we quote) "....the illegal activity (of Madre De Dios gold mining) makes us look like a backwards, third world country and leaves open the possibility to be condemned internationally for allowing this chaotic activity to take place." He also explained how..."his government would stop the existence of the informal mining that was poisoning rivers, destroying the environment and making slaves of the youths that were dragged into the sector by the large operators."

Since then, Madre de Dios gold production has gone straight back to where it was before the headlines got made.
click to enlarge

Not only that, but Peru's gold mining industry, seeing production drops in its formal mines like Alto Chicama relies even more heavily on this scandalous export to maintain its economy. Madre de Dios gold now accounts for nearly 11.5% of all gold produced in the country.

click to enlarge

Third world is as third world does, Mr. President, and another thing that Peru has in common with the other third world countries is the bullshit demagogue liar and shyster it has as Head of State. But who gives a damn when we can all shout ¡VIVA INVESTMENT GRADE! as one voice?

Tuesday, August 3, 2010

Peru's two-faced environmental policy

This was Amazon jungle; it's now a environmental nightmare thanks to the
blind eyes turned on informal and illegal mining by Peru's government

Hey, remember back in April when Peru's newspaper of record, El Comercio, started a big debate over the environmental wasteland being caused by informal gold miners in the Madre De Dios (MDD) region of southern Peru? Well if you don't here's a link to the April piece, here's a link to a whole photo gallery of images from the craphole being made in the middle of the Amazon rain forest that was published by El Comercio. From there you can get Googling and check out the reactions in Spanish and in English media if you care enough.

So for a while, April 2010 to be precise, this most awful of governments in Peru decided to care about MDD. Peru's Environmental Puppet Minister Antonio Brack said he was "extremely worried", calls for new controls were made, licences to operate would be revoked and tightened up and the world would get greener and cleaner, right?

Wrong. As soon as the world's eyes were bored of the subject the Peru government did precisely nothing else, giving the green light to "business as usual" at MDD. Here are the official monthly production figures for the MDD area, January 2009 to date, as supplied by the Ministry of Energy and Mining (MEM):

Yep for one puny month the government clamped down, but as soon as backs were turned, production went back to the same as it ever was. And to give you an idea of what this dirty, filthy gold represents here's a chart that shows the monthly percentage of MDD compared to Peru's total production.
It's 10% of Peru's gold production, basically. In 2009 alone, MDD gold added up to 5.68 million ounces officially (it's well-understood that more is produced and gets swallowed by the black market) and by using monthly spot prices for 2009 and comparing to 2009 GDP, it's also 0.42% of the country GDP. Generated by filth.

This is the way of the Banana Republic; pay lip service, pretend you care, then go for the money. Peru, the most wonderful of countries, dragged down by its abysmal leaders once again.

Saturday, July 10, 2010

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Sunday, February 21, 2010

errrm.....toldyaso?


Check out this excerpt of the contents of last week's IKN Weekly on Dorato Resources (DRI.v) and the Cenepa region of Peru again, willyaz?
"....unofficial word from Lima corridors of power is that the fairly new and so-far somewhat toothless environment ministry, led up by pragmatic ecologist Antonio Brack, is keen on making an example of this area in exchange for allowing mining development enviro green lights in other areas of the country. The concept is that Brack can point to the Cordillera del Condor area as a place (rather minor in the great mining scheme of things) where the government has taken action and protected jungle areas. Meanwhile the mining and energy ministry gets its way in other, larger project areas such as the oil projects of the Amazon basin. The trade-off makes sense, but if it comes to pass it would be a killer for DRI. How sad."
Now have a look at what Environment Minister Antonio Brack Egg (great name) said in a radio interview on Friday (translated):
Environment Minister Antonio Brack called the decision by the Ministry of Energy and Mines to suspend the activities of Minera Afrodita (subsidiary of Dorato Resources (DRI.v)) in the province of Condorcanqui (Amazonas) "an answer to the request of the population of the Cordillera del Cóndor zone".

In conversation in CNE radio's program, 'Direct Dialogue', Brack Egg said that he had directly participated in the decision as it was a demand from the native communities of La Cenepa.

Any further questions? And no Eric, I don't want to work for you so don't ask. Just hire somebody up there that can speak Spanish one time, yeah? Or maybe subscribe to the Weekly, Eric. Only 25 a month.......cheap!

Friday, November 13, 2009

Dead Animals


Last week we ran this story on the sealions found dead on the Colán beach in northern Peru. This morning El Comercio reports the press conference held by Minister of Production (oh the irony) Mercedes Araoz who confirmed the obvious; the 263 dead animals had been poisoned. The method was to feed them fish laced with rat poison and the culprits were undoubtedly small fishermen that work out of the local harbour.

Sit this story alongside the recent one about the Mining Minister who refuses to control the sale of mercury inside Peru while condemning the artisanal mining in Madre de Dios that is wreaking environmental havoc. Spot any pattern yet?

Thursday, November 12, 2009

Peru: Madre de Dios gold mining, as seen by Hambone

The Amazon jungle, as seen by Peruvian gold mining
companies and ignored by its government

I've been given permission by the author to paste up part of chapter 17 of the great book 'Peruvian Plunge' by Sam 'Hambone' Mitchell (another excerpt is here, along with a link to get your own copy...only $5 and well worth your time) that covers the ecological disaster area known as the Madre De Dios gold mining zone (that we covered in this post earlier in the week).

We join our hero as he goes through a difficult waters moment while travelling on a boat up the Madre De Dios river. Read on.....


"....my bladder stretched to the bursting point by two cups of coffee, I begged the captain to pull over for a pit stop. “I know just the spot coming up,” Pablo – who spoke perfect English – assured me. Two minutes later, we drew near to what first appeared to be a rocky beach on the left shore. As we pulled up to it, however, I noticed that the “beach” had been stripped bare of all vegetation as if it had been grazed by a Brontasaurus (who knows, maybe it had); just a few yards back from the waterline, three boxcar-sized pyramids of loose gravel and slag had been heaped there by some unseen giant hand. No bird stirred and no grasshopper whirred in the eerily still, almost sterile air of the place. What the Hell?

“Your first Madre de Dios gold mine, but certainly not your last,” announced Pablo when the motor had died. He indicated the riverside wasteland with a dismissive wave of his hand and weary ironic smile. “This one was just abandoned; I wish I could say the same for the others.”


Thinking that the ruined crescent of beach was “all” there was to the abandoned mine, I scrambled out of the boat and up one of the thirty-foot high slag heaps to find a private place to pee, as no tree or bush remained standing on the waterline. Cresting the top of the pile of loose stones, my eyes were speared by a shocking sight: stretching several hundred feet back into the jungle behind the slag heaps was two to three acres of sun-blasted, scorched-earth wasteland. In the middle of this ruined barren moonscape, covering perhaps a quarter-acre, was a slimy pool of toxic sludge that looked more like anti-freeze than water. Scattered about were stray bits of rusted-out machine parts and plastic jetsam. I added my own stream of human waste to the decoupage of destruction, and retreated back to the boat rocking gently in the waters of the Mother of God.


“This was just a small-time operation, what they call a ‘pirate mine’ because it had no permits to operate by the Peruvian government,” Pablo explained as we waited for the other passengers to finish their business. I asked him if the government had shut this mine down; Pablo laughed a “yeah, right” snort. “The government has neither the money nor the will to shut these mines down. The miners move in wherever they want to, dig until they think they can do better somewhere else, then move further into the jungle. These guys are set up somewhere else by now.”


As I had read but never paid much attention to, the other problem with these mines, legal or illegal – besides the total destruction of the fragile riparian corridor – is the fact that the miners leach the sand and pebbles through mercury, which binds to the gold dust, allowing them to harvest the tiny yellow flecks that have been luring fortune-seekers to Peru for centuries. Once the gold is collected, the mercury is washed on down the river to poison the fish – and anyone who eats the fish, be it bird, otter or human – downstream. Out of sight, out of mind, like so much else in the jungle. With the Peruvian government’s full knowledge and cooperation, hundreds of gallons of the toxic metal are simply washed away down the river for someone else to deal with.


As Pablo knew from experience all too close to home, it wasn’t just the folks downstream from the mines who suffered. “My brother went to work in one of these mines. When he got there, there was no fresh water for the workers to drink. His boss told him, ‘Drink from the creeks and river like everybody else.’ Pretty soon he was sick, then in the hospital for six weeks. He’s better now, but he says he will never work in the mines again.”


Everyone back in the boat, we headed off again. We hadn’t gone a mile before the real nightmarish visions began. They started out small enough, with the one- or two-man small-potato operations. While one guy would shovel wheelbarrows full of sand and gravel to fill the gravel-washing sluices (themselves supplied by a gas-powered water pumps from Hell), his buddy would wash the material through the mercury, ever alert for the tiny flakes that were the ultimate goal of all this carnage. Working together in teams, these small-time Planet Nibblers might be able to destroy a few acres of riverside in a year.


As we chugged on downstream, we came to the next level of Planet Eating – huge dredges set on barges in mid-stream that sucked the river bottom off its bed like a giant vacuum cleaner sucking up dust from a dirty floor, coughing the sand and rock up onto huge conveyor belts that were combed through by several workers. The tons of mercury-stained silt were dumped directly back into the heart of the river.


But the true, undisputed winner of the Planet-eating blue ribbon prize for inflicting, hands down, the most harm against the Mother of God weren’t the small-potato pirates or the Idaho-baker barges, but the legal “official” gold mines operated with the full encouragement and permits of the Peruvian government. These full-scale assaults against Mother Earth – clearly paid for and operated by some mega-buck multi-national mining corporation – didn’t screw around with piss-ant little wheelbarrows and water pumps. To truly lay waste to a planet, you need bulldozers, front-end loaders, and dump trucks the size of houses to move that rock around. You could almost smell the mercury hanging in the air.


Staring dumbfounded at this unbelievable in-your-face carnage stretching for miles along both banks of the Mother of God River (and this was just the little bit visible from the boat), I asked myself over and over again: what is humanity getting out of this rotten deal? Except for the few guys at the head of the pack – who have probably never even been to Peru – who is the “winner” in this lose-lose situation? The ladies back in the U.S. with their gold jewelry? Are those little flecks of yellow worth this destruction, this needless swathe of death? Could humanity survive without the “precious metal” being ripped from our precious planet? How much insult could one Mother of God take?


Of course, all these miners and their poverty-stricken families needed somewhere to call home. The small-time “pirates” tended to call home tiny little shacks that were really nothing more than overgrown tents made out of bright blue tarpaulins, clinging to the muddy riverbanks in little clearings hacked out between the waterline and the jungle. As we passed these forlorn little bivouacs, packs of curious children would stare out at us; I would stare back at them, wondering what kind of life these kids had to look forward to (clearly not a life in school, as it’s hard to run a school bus up and down a river). I asked Pablo his opinion, and he said, dismissively and unconvincingly: “These people have a lot more money than you think. They don’t have to live this way; they want to live this way.” Whatever you say, amigo…


The really high-rollers in the Peruvian gold-mining game got to move to the downright posh community of Rio Colorado, where they could upgrade from tarp-covered tent to rough plank and tin-roofed hovel. A six-block unbroken line of these depressing miners’ shacks stretched along the right riverbank; perched atop every other one of them like so many invading flying saucers were shiny new satellite dishes, so the miners could come home from a hard day of poisoning themselves with mercury to watch the governor of California blow up terrorists.


Pablo explained that the Colorado River, a major tributary of the Madre de Dios, was being invaded by the miners at an alarming rate. They were pushing deeper and deeper into the pristine million-acre wilderness of the Amarakaeri Communal Reserve, dumping their silt and their mercury into the river, to wind up in the village. When I asked him why the natives the reserve was supposed to “protect” put up with this, he explained that most of the miners in the reserve were the natives! Whatever “noble savage” myth I was still suffering from at that point floated on down the Mother of God with the gallons of mercury dumped there by the Indians who for thousands of years have depended on the river for their food and water. I mean, be real: who would be crazy enough to live in some hut in the forest when you could live in a house in town with a satellite dish on the roof?


The biggest irony in all of this is that the gold miners are opposed to Hunt Oil’s petroleum explorations because they think, for some reason I can’t fathom, that the oil company will shut down their illegal gold mines. Of course, if that does happen, the gold miners can always go to work for Hunt Oil until the oil is gone, at which time they can go back to gold mining: money is money and Planet Eating is Planet Eating, what difference could it make?



Get your copy of Peruvian Plunge here

Tuesday, November 10, 2009

Peru: Gold miners in Madre de Dios

The front page, above fold, of El Comercio today
(click to enlarge)

An excellent piece of journalism in Peru's El Comercio today (a reminder of the newspaper that it used to be) bylined Nelly Luna, showing the ecological disaster area created in the Amazon jungle of Peru by informal gold mining. The Madre de Dios Region is home to an estimated 30,000 miners, nearly all of whom produce gold illegally and with no regard whatsoever to environmental regulations.
Main feature page of the El Comercio page today,
complete with photos of the disaster zone
(click to enlarge)

Here follows my translation of the full report, entitled "Brutal Deforestation of Madre De Dios", and watch out right at the end for a revealing interview with the Mining Ministry Flunkey, who knows what is happening, knows it's illegal and knows that around 50 metric tonnes of mercury legally imported into Peru ends up being illegally sold in the disaster area but doesn't want to do a thing to stop it. His arguments are laughable and clearly just wants to protect the status quo, not giving a damn about the enormous damage that current policies are causing. Viva investment grade.


Who will halt this criminal attack against nature?


Forests are converted into deserts due to the advance of informal mining that illegally extracts gold. Regular buying and selling of mercury is demanded by locals, who use it for the extraction of the precious metal.

An overflight of the jungle between Madre de Dios and Puno offers a panoramic portrait of the devastation; thousands of tonnes of earth removed and forests disappeared or buried beneath the tailings left by years of intense and illegal exploitation of gold in the Amazon. It is possible to make out improvised mining camps, heavy machinery turning over the red soil, flows of rivers cut off and enormous pools of water that hold an un-noticed poison that keeps on accumulating: mercury.

This element is as necessary in the exploitation of gold as kerosene is in the production of cocaine. Because of this, mining engineers and environmentalists argue that if the sale of mercury is regulated, in the same way as chemical supplies are to combat narcotrafficking, a large part of the problem of illegal mining and the destruction of the forests. But this doesn't happen; mercury is sold without any sort of control among the population that is found around the mining zones of Puno and Madre de Dios.

Supply and Demand
According to Customs information, in just the last four years the importation of mercury has nearly doubled, from 75,000kg imported in 2006 to 132,000kg last year. And so far this year, only up to September, there have been legal imports of 131,876kg of mercury. The Ministry of Energy and Mines (MEM) says that all these imports are basically used in artisanal mining, where levels of informality (no mining or land titles held or environmental impact studies approved) reach 90%.

For every gram of gold produced, two or three times as much mercury is needed. A recent study by Cáritas estimated that more than 50 tonnes of mercury is used in the Madre de Dios region per year- Despite the large scale of the mining exploitation, tax evasion due to the informality of the industry is enormous; this region receives only S/15,000 (U$5,200) in mining royalties from the state.

Up to March 2009, the Institute of Geology, Mining and Metallurgy (Ingemmet) and the MEM had authorized 1,592 mining concessions in Madre de Dios and only 19 have approved environmental impact studies, with another 1,089 in process. There are also 87 mining concessions that overlap the Peru State Nature Reserve of Tambopata. According the the MEM, the control of current illegal mining is the responsibility of the regional governments.

"The mining concessions have been authorized without taking into account other existing rights such as agricultural properties, forestry concessions, conservation concessions and protected areas" according to the diagnosis of the Ministry of the Environment. With this disorder of concessions and a lack of controls, mercury is feeding into waters, lands and even in fishes. In improvised stores located around the mining zones such as Huepetuhe or Inambari, where the taxman never appears, one kilo of mercury sells for between S/150 and S/180 (U$52 to U$63) in jars with the ticket names American Mercury or El Español.

No Clear Rules
National rules establish that all companies that use mercury must have mechanisms that allow for the recapture and re-use of mercury, but nothing more. There is no rule that regulates the adequate final disposal or the metal. Experts say that the ideal situation would be to take it to safe depositories overseas (Peru does not have any). Without clear rules, each year more and more tonnages of this dangerous element arrives to stay (or evaporate) in some part of the country.

It is worth mentioning that 83% of mercury imported by Peruvian companies comes from the United States or Spain. Mercantil SA, Triveño Mercury Corporation, JH Minerals, Aldo Orlando Torres Rojas and M&M Trading S.R.L. are the main importers. The quantities that arrive are mainly destined for the mining industry, with lesser percentages for the production of chlorine and dental curation work.

But mercury is not the only element used in illegal mining in the Puno and Madre de Dios regions. Every day, front load diggers arrive that cost half a million dollars apiece along with lorries, trucks, excavators and drags. The economic investment is very large, nothing to do with small mining. The Ministry of the Environment estimates that 50 truckloads of fuel arrives to the zone every day, 175,000 gallons of diesel and gas is used and approximately 1,500 litres of oil is spilled by the machinery and boats. Who will put a stop to this situation?

Interview with Víctor Vargas Vargas, Director General of Mining, MEM
"Prohibiting sales could generate contraband"

"If the commercialization of mercury is regulated, wouldn't it reduce illegal mining?

Mercury is freely traded. There are formal companies that import and sell it in a legal manner. If it were prohibited, it may generate contraband in this material.

Imports have nearly doubled in the last four years.

This is connected with the rise in price of gold, which causes a greater demand for mercury in the marketplace. What's more, 98% of informal mining activity in the country is dedicated to gold mining and the basic ingredient is mercury. What we would like is that the technical requirements of the recovery of this element are complied with.

Therefore, mercury that arrives legally to the country finishes as being sold to illegal mining.

Indeed. Anybody can buy mercury, just like they can buy gold. There are no restrictions. What is needed is to formalize these people and teach them to correctly handle this resource. Large mining companies do not use mercury, but cyanide. Mercury is only used in artisanal mining. However, there are mines that during the exploitation process obtain mercury as a byproduct, for example in Yanacocha, that is then exported.

Is there a regulation, as there is for cyanide, that locates the final destination that the mercury must have?

There is no rule about its control, but there is perhaps thought of creating one, without aggravating the already existing problems. Blocking its comemrcialization would stimulate a black market and a rise in the price of this material.


Wednesday, October 21, 2009

Hunt Oil: Playing Dirty in Peru's Amazon Basin

The 'Reserva Comunal Amarakaeri', Amazon basin Peru

On the website of international oil company Hunt Oil we have a snippet of information one of their projects in Peru.
On May 2, 2006 Hunt signed a License Contract for Block 76, covering 3.5 million acres located in the provinces of Manu and Tambopata along the Camisea gas trend. Hunt, along with Repsol (50 percent), is currently in the first 2.5-year period of the contract, which entails geology and geophysical studies, and environmental impact assessment, field study and seismic processing. The second period of the contract commences in the first quarter of 2009.

What the company fails to mention, however, is that Lot 76 is also bang inside a region known as the "Reserva Comunal Amarakaeri" (the Amarakaeri Communal Reserve) (RCA), a legally recognized and established nature reserve in the 'Madre De Dios' Amazon basin region of southern Peru.
Not only is the nature reserve legally recognized by the government of Peru (an armslength of laws and regs right here) but it is also supported by international environment protection laws and bodies to protect the rights of indigenous peoples living there, the conservation of its environment and the preservation of its flora and fauna.

So, as you might have guessed, Hunt Oil (who are also 50% owners of the big Camisea NatGas plant in Peru and very snuggly and cozy with the Twobreakfasts gov't) have a slightly different perspective on life than the indigenous locals that live in that jungle region and have the duty of protection for the nature reserve (both culturally and legally). The two sides have met and discussed the potential (or not) of development in the area on several occasions. According to Peruvian law, the locals in and around a protected area such as this have the final decision on whether it is developed in any way. From the start, the locals have opposed the presence of Hunt Oil and its 50% partner, Spain's Repsol, in the area. From the start, Hunt and Repsol, along with the tacit support of Twobreakfasts' crew of corruptos, have turned a blind eye to the enviro laws and locals' wishes. But now, watch out folks cos it's all coming to a head.

In recent developments, both sides met on September 4th to thrash out a definitive deal. A deal was in fact reached and signed on September 13th by both indigenous representatives and representatives of Hunt Oil and said (excerpt of copy of agreement with signatures of Hunt Oil people):


"...that the entry of Hunt Oil and Respol into the interior of the RCA to execute seismic projects is not accepted, a decision that will be respected by the Peruvian State, Hunt Oil and Repsol, who have been present witnesses to this decision"

And so, with the agreement signed, Hunt Oil did what any normal oil company would do and totally ignored it. Against the wishes of the locals and contrary to the agreement that Hunt itself signed, it has continued its seismic survey program inside the boundaries of RCA. Not surprisingly, the locals are now rather pissed. We are now at the point where the indigenous community has given Hunt Oil (and Repsol) an ultimatum: "Get out or we throw you out".

This document dated October 12th....
...states the locals' determination to forcibly eject, if need be, the oil company and its staff. After the death and destruction we saw at Bagua this year that came about due to a confrontation very similar to the one we're now seeing over RCA, we now have a real live potential flashpoint emergency situation on our hands. Reports coming through from the region say that there is suddenly an influx of police officers in the local town of Salvacion and that the atmosphere between the two sides is getting ugly.

I'll leave you with the President of the region's indigenous organization making things crystal clear on this video interview. Either Hunt Oil (and Repsol) leave on their own accord or they will be removed.



It's not too late to stop another violent episode between people who are far from the ignorant savages that the government of Peru in cahoots with their lapdog media make them out to be. These are people that have gone through all the correct channels of dialogue and have stood up for their rights. Whatever else you might hear, they do indeed have the last word as to what goes on in the RCA (Hunt Oil disparagingly calls it 'lot 76') region. They are charged with the protection of it by the laws of the land and have been more than polite so far.

It's time that others stood by the people defending RCA, not only under threat from development but from their own government. The way forward is very simple. The people responsible for the protection of this protected zone and who have the executive decision on its future want Hunt and Repsol to leave. So they must leave. The end.

For more information (and word of the disinformation campaign favouring Hunt that has already started in the Peruvian press), please go to the Spanish language FENAMAD blog.

Thursday, October 1, 2009

ISO 14001 Environmental Management System standard

ISO's main products are the International Standards. ISO also publishes Technical Reports, Technical Specifications, Publicly Available Specifications, Technical Corrigenda, and Guides.
Click the figure below to see the video.

 ISO 14001 Environmental Management System standard.
See more:
ISO 14001 Environmental Management System standard

Thursday, August 6, 2009

Petaquilla (PTQ.to) recommended closed by Panama's Ombudsman

The Office of the Ombudsman in Panama (Defensoría del Pueblo) today published the findings of its investigation in LatAm's worst mining company, Petaquilla Minerals (PTQ.to), currently permanently laying waste to the environment of first growth rain forest around its operations under the stewardship of its CEO, convicted drug runner Richard Fifer.

The report published by the Ombudsman can be found on this link right here (Spanish only) so link-thru and knock yourselves out, but in a nutshell it takes into account 23 (yep twenty-three) different considerations of illegal or reportedly illegal activity by PTQ.to and makes seven resolutions, the main three of which being directly significant to PTQ.to are:
1) The Ombudsman states that Petaquilla Minerals has violated Panama's constitutional right of a healthy environment by proven acts of pollution, non-compliance with laws and abuses of rights (I mean hey...why mess with breaking a piffly law or two when you can go the whole hog and violate the country's constitution, right?).

2) The Ombudsman recommends to the Ministry of Commerce (MICI) and the Ministry of the Environment (ANAM) that they take steps via some precise and existing laws to stop all activity at the mine immediately.

3) The Ombudsman recommends to the Ministry of Commerce (MICI) that it moves to rescind the contract of Petaquilla Minerals under the law of "Substantial Non-Compliance" that's part of the Pananamian statute.
The ministries now have 30 days to get their acts together and move on this. It explains why the company says it's finally commissioning its mine but the stock has done nothing despite the BS pump PRs and ridiculous cheerleading from corrupted Panamanian websites that try to part expats from their retirement lump sums (and are seemingly unwilling to run today's news on Fifer's craphole...what a surprise, Don Wanker).

The sooner this thing is shut down forever, the better it will be for the world. PTQ.to is a prime example of the kind of rancid operation that gives the whole world of mining a bad name and gets dirt thrown at the good as well as the bad. Meanwhile, the sycophantic Canadian mining scene just keeps it mouth tightly shut about the stock and the scumbags running the company; it's about time you learned how to weed out your own, boyz.

Tuesday, May 26, 2009

Petaquilla Minerals (PTQ.to): Updating LatAm's worst mining company

Felipe Camargo: Noriega's henchman and convicted human rights
abuser is now Head of Security at Petaquilla Minerals...
you just can't get the staff these days, can you?

As birds of a feather flock together, the latest recruit to the empire of Richard 'lil dick' Fifer should come as little surprise. Its new head of security hired to keep the locals in check is a guy named Felipe Camargo. If that name rings a bell amongst all the Latin American modern history professors tuning in tonight let me refresh memories by saying that yes, it is the same Major Felipe Camargo who was head of the G-2 'Military Intelligence' army hit squad in Noriega's time and ol' pineapple face's right-hand man. Yes, it's the same Felipe Camargo that was in charge of Noriega's gun running operation. Yes, it's the same Felipe Camargo who was jailed after the overthrow of Noriega and later convicted in 1992 of human rights violations and yes, it's the very same Felipe Camargo with another 30 charges of human rights abuses left pending and unanswered.

That's the kind of guy who gets a job as "Chief of Security" under the scumbag Fifer and his worst-of-breed goldmine. I bet the Scrabble board doesn't get much use in the company canteen.

Meanwhile, locals have also stepped up their campaign against this aberration of an open pit slum and as of May 11th blocked the road to Petaquilla demanding that the government close the thing once and for all. The roadblock was solid and permanent until May 23rd (ie last weekend) when the local police were ordered to unblock the road by ultra-corrupt local politico for the Coclé region, thus the cops moved in, cracked heads, arrested 20 people including famed enviro activist Carmencita Tedman and the local head of the anti-mining lobby.

Also, despite the fact that the company is still in non-compliance with the national environmental laws it says it will be producing at a rate of 2,200tpd throughput as of next month. Its spokesidiot was also quoted in the local press as saying there is no proof that PTQ.to has polluted the local environment despite things like dead fish floating in rivers and the minor detail of a one million US dollar fine from the ANAM environmental agency that was slapped on its tush in 2008 and has so far refused to pay.

The company cannot legally operate. Got that? Without the environmental permit that it still does not have it should be under a total stop-work order. However it didn't stop these douchebags from claiming on April 9th that the mine had made first pour of gold. It ignores laws, collects fines and then refuses to pay them. It hires convicted human rights abusers to run its security operation (torture and rape were just two of Camargo's calling cards according to the judge) and then beats the living crap out of non violent protestors. Petaquilla Minerals and the people that run it are a pox on the reputation of all Canadian mining companies in Latin America. How can you possibly claim to be responsible when the whole industry, from fellow miners to brokerages to analysts to commentators to investors, turn a blind eye to companies like PTQ.to? Allowing Fifer and his woeful excuse of a mining company to continue reflects badly on the sector, not just one company. Ask yourself if you want a clean and respectable industry. If you do, join me in denouncing Petaquilla Minerals.

So what's going on over at Aquiline (AQI.to)?

The company has been tight lipped about things, but according to this Spanish language report from way down Chubut Argentina way and dated the morning of Thursday, 21st May, the Environmental Impact Study submitted by AQI.to to the provincial government of Chubut has been rejected and they have a maximum of 60 days to come up with a better idea.

In the news report, Chubut's Environment Minister Juan Garitano tells a local radio station that "the updated report of environmental impact (for Aquiline) mentioned in the reference is not in conditions to be approved for the environmental aspects it refers to, as it does not comply with the sufficient technical requirements for the stage in which it finds itself."

It never fails to amaze me that mining companies forget to mention these things to their shareholders. I mean, screwing up an EIA, getting a red light from the local bigwigs and putting the whole project at risk is probably something they'd like to know, dontcha think?

Thanks to reader M for the headsup on this.

Thursday, April 30, 2009

Doe Run Peru: Public Relations Fail of the Day

Yesterday I got the following comment from a reader named 'Dremco' added to the bottom of this post about Doe Run Peru.

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Dremco has left a new comment on your post "
Doe Run Peru: The truth will out": I have visited La Oroya several times over the years, since 1984, in order to visit and work at the Metallurgical plants. In the early years, of Centromin ownership, there was never any apparent environmental work done in the entire area.

However, since Doe Run bought the company there has been a very extensive cleanup of the plants, and especially in the communities. La Oroya looks entirely different, and more attractive since the Doe Run purchase.

It is probably impossible for any company to do a good enough cleanup effort to satisfy the environmentalists, but from my perspective as a visitor to the area, Doe Run has done a remarkably good job.

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Now when somebody sticks up for one of the worst polluting companies on the planet in such a sycophantic way (not joking either; the Blackstone Institute put Doe Run Peru in its top ten most polluted places on the planet), my BS meter tends do that "Geiger Counter meets U308 yellowcake" thing. So on checking the where reader Dremco was sitting when writing the comment*, it turns out to be Chandler AZ, a town just South of Phoenix. Our mystery reader arrived directly on the page by searching "Doe Run Peru" in Google and then stuck around for over 30 minutes checking out other Rennert-related articles (some of the following has been XXXd out to respect privacy):

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VISITOR ANALYSIS
Referrerhttp://www.google.com/search?sourceid=navclient&ie=UTF-8&rlz=1T4WZPA_en___US258&q=Doe Run Peru
Search Engine PhraseDoe Run Peru
Search Engine Namewww.google.com
Search Engine HostGoogle
Host NameXXXXXXXXXXXXX
IP Address67.XXX.XXX.XXX dremco
CountryUnited States
RegionArizona
CityChandler
ISPSun Lakes Cable
Returning Visits0
Visit Length31 mins 22 secs
VISITOR SYSTEM SPECS
BrowserIE 7.0
Operating SystemWinXP
ResolutionUnknown
JavascriptEnabled

Navigation Path

Date Time Type WebPage
29th April 200917:32:08Page Viewwww.google.com/search?sourceid=navclient&ie=UTF-8&rlz=1T4WZPA_en___US258&q=Doe Run Peru
www.incakolanews.blogspot.com/2009/03/doe-run-peru-truth-will-out.html
29th April 200917:36:39Exit Linkhttps://www.blogger.com/comment.g?blogID=507788417054293017&postID=7735749254938621153&isPopup=true
29th April 200917:44:42Page Viewwww.incakolanews.blogspot.com/2009/03/doe-run-peru-truth-will-out.html
incakolanews.blogspot.com/search/label/ira%20rennert
29th April 200917:58:00Page Viewincakolanews.blogspot.com/search/label/ira%20rennert
incakolanews.blogspot.com/2009/03/ira-rennert-doe-run-peru-leopards-and.html
29th April 200918:03:21Page Viewincakolanews.blogspot.com/search/label/ira%20rennert
incakolanews.blogspot.com/2009/03/ira-rennert-doe-run-peru-leopards-and.html
29th April 200918:03:26Page Viewwww.incakolanews.blogspot.com/2009/03/doe-run-peru-truth-will-out.html
incakolanews.blogspot.com/search/label/ira%20rennert
29th April 200918:03:30Page Viewwww.google.com/search?sourceid=navclient&ie=UTF-8&rlz=1T4WZPA_en___US258&q=Doe Run Peru
www.incakolanews.blogspot.com/2009/03/doe-run-peru-truth-will-out.html

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Bizarrely enough, if you leave Chandler and travel South 30 miles or so on I-10 you arrive at the town of Casa Grande, home of a very large lead (Pb) products plant owned by.....yes you guessed it folks...The Doe Run Company.

So let's see now: Is it just a wild coincidence that somebody sitting 30 miles from one of the few Doe Run operations in the world suddenly decides to type "Doe Run Peru" into Google and leave glowing and demonstrably false comments about just how wonderful, clean and caring Doe Run is at La Oroya, Peru? Or maybe there's a connection somewhere. Waddya think?

Therefore commenter Dremco, you win this week's coveted award. Public relations dumbassery taken to a new level. All yours, dude:


*and don't worry, I rarely do it and unless you're at a company registered IP there's very little I can find out.

Thursday, April 16, 2009

Fortuna Silver (FVI.v) and its press release today

Two people have already mailed me this morning about this press release from FVI.v today. According to the presser, illegal roadblocks have been set up byprotesters at the company's San José silver project in Mexico. So rather than send the same copypasted mail to the 3rd, 4th, 5th etc mailer (although getting your mails is great, so keep 'em coming) here are my thoughts:

1) I don't work for the company and have no special information. In fact FVI.v hasn't even bothered to pick up the phone and say "hi" since I pointed out to them that they were hitching their wagon to a real unhinged scammy pump artist (who'll remain un-named this time as he scans Google for mentions of himself and them bombards you with hatemail if he doesn't like what he reads) who doesn't give a damn about anyone but himself. I haven't lost any sleep, though. This is business, not love.

2) Even if we talked today the company wouldn't be in the position to hand out information away from the official line that could be quoted, so no point in asking them. The water rights issue is the touchy one, for sure. Note that the enviro permit papers have just been filed, so this might be a Corleone-style negotiation tactic or NGOs making a fuss...or a bit of both.

3) FVI.v has always valued good community relationships and I've seen that attitude in action first hand. However Continuum were definitely faster and looser and unliked in the San José area, especially on a couple of projects that locals said were leaking pollution. This may be the root cause now that CNU.v has been fused in to the company.

4) FVI.v isn't managed by stupid people, it's managed by intelligent people. I'm the first one to call out the scam artists of this industry, but also I'll call the good ones as good. FVI.v is a responsible mining company that does care for the environment around it, just the type that will win out. Therefore with silver where it is right now, anything sub 90c is a buying opportunity if people decide to panic themselves out of selling an excellent silver mining comapny.

Disclosure: I don't own right now. Those of you that bought the NOBS report on FVI.v in February (still available, see link here) will know that I consider it inside a short-term trading range until further notice and know where my likely buy and sell points are. So far it's done pretty much what I expected.

Thursday, April 9, 2009

A most impressive map of the Amazon rainforest

A couple of weeks ago IKN ran this post with a chart that shows just how much (read 'how little') of the Amazon rainforest is protected by its host countries. Well now the people behind the study RAISG, have released their truly fabulous interactive zoom-in detailed map of the whole region, it's protected areas, its indigenous territories etc etc

Click to enlarge (it gets very big)

The above map is a screenshot from the site, but you should really go to the link right here and have a play for yourself. It really is everything you've ever wanted to know about the Amazon rainforest but were too afraid to ask and you can zoom in and out, change parameters, look in close detail and all the rest. A highly recommended website and superb source material.