In a major victory for the people of Peruvian mountain towns near Newmontís massive Yanacocha mine, Newmont Mining Corporation has relented in its quest to expand the mine to Mount Quilish, a mountain that many consider sacred and where expansion would further endanger water quality and public health. Large-scale protests that mobilized 10,000 or more local residents blocked access roads to the mine and put pressure on Newmont to cancel expansion plans. Greengrants grantees, such as Asociación Civil Labor, have worked to increase participation of local people in mine development decisions and environmental enforcement.
The November decision by Newmont to withdraw expansion plans comes as a great relief to the communities surrounding Minera Yanacocha, the largest gold mine in South America. Co-owned by Denver-based Newmont, the Buenaventura Mining Company of Peru, and the World Bank’s International Finance Corporation, the mine has long been at the center of environmental controversy in the region.
Plans to expand the mine to nearby Mount Quilish, which provides fresh water for City of Cajamarca and many other downstream communities, prompted Cajamarca in 2003 to declare unprecedented protections for Mount Quilish and its watershed to make it off limits to mining, despite concessions already granted to Minera Yanacocha. Majority-owner Newmont’s persistence, and local concerns about water pollution and other environmental harm, prompted protests in September that blocked roads and temporarily crippled the mining operation.
In the past, the mine has drawn fire for allegations of bribery during the permitting process, use of cyanide heap leach methods that have led to water quality issues for farmers and communities downstream, and a mercury spill in 2000. Among the most controversial aspects of this mining operation has been its track record in failing to respect the rights of nearby communities. Newmont’s decision to withdraw current plans (though it has not relinquished its concession, which leaves open the possibility of later expansion) is a significant gain for local people who have long worked to improve Newmont’s responsiveness to local concerns. A decision earlier in the year by the Peruvian Constitutional Tribunal upheld Cajamarcaís right to restrict mining at Mount Quilish, and it set an important precedent for communities facing similar developments in Peru, where resource developers enjoy tremendous power.
The tribunal also set the stage for greater involvement of local people in consultation on any future environmental impact statement. An increase in such involvement has been a major goal of Greengrants grantee Asociación Civil Labor, which has held workshops for affected communities to increase their ability to participate in decisions on resource development and to pressure the government to enforce environmental regulations.
A mercury spill in 2000 may have galvanized public distrust of Newmont and helped increase local willingness to stand up to the corporation. On June 2, a mine truck on its way to Lima spilled more than 330 pounds of elemental mercury onto the road passing through Choropampa and other villages. Curious children and adults quickly gathered the shiny liquid and soon spread it into hundreds of homes and public spaces. Nearly 300 villagers suffered health effects from the spill, such as blindness, kidney disorders and brain damage.
The incident and Newmont’s inadequate response were catalysts for anger and protest captured by grassroots video documentarians who were recommended for a grant by our Andes Advisory Board. The grant allowed the group, Guarango Cine y Video, to complete the editing of the video “Choropampa: The Price of Gold,” which went on to win several international film festival prizes and build tremendous international awareness of Newmont’s handling of the spill. A second grant to Guarango supported the efforts of a youth group in Cajamarca to create its own video, “Save Mount Quilish.” The seasoned Guarango team helped teach the students to use cameras and editing equipment and produce a film shown in communities around the region.
Newmont claims that it has invested almost $10 million to decontaminate soils in and around Choropampa and that it has paid settlements to victims of the spill ranging from $500 to $6,000 depending on the severity of their illness. But many criticize Newmont’s execution of the settlements, believing that compensation was inadequate and that Newmont officials did not publicize the fact that acceptance of a settlement constituted a waiver of the right to sue the company in the future. Newmont claims that there are no long-term health effects from the mercury exposure, and it also cites the fact that the mine has provided jobs for many in the region and has developed village infrastructure, including a medical post in Choropampa.
The spill and other problems with the mine clearly played into public sentiment against Newmont. The willingness of Cajamarca municipal officials to oppose expansion of Yanacocha, despite the mine’s 8,000 local jobs and $70 million in estimated 2004 tax revenue, according to Newmont, suggests that the tide may be turning.