CHILEAN Chronicle of a death announced?

G

SANTIAGO, NOVEMBER 2004.

1 PRESENTATION

Chilean Patagonia can be identified as the geographic space over the Province of Palena, Aysén Region and . It is a rich and biodiverse territory in which we can find a great variety of landscapes, together with a variety of different habitats and cultures that, over time, have learned to cope under extreme environmental conditions.

The elements combined in the Chilean Patagonia are the result of both biological and physical processes that shape a territory with a very diverse geography, which considerable amounts of endemic flora and fauna. and Torres del Paine are probably the best-known parts of Patagonia worldwide.

Despite its rich and endemic biodiversity, Patagonia has not been studied comprehensively or appropriately protected. While some 50% of the territory is incorporated into the State-Protected Wild Areas National System (Sistema Nacional de Áreas Silvestres Protegidas del Estado), SNASPE, there are a number of important areas, are still unprotected.

Chilean Patagonia, in addition to its importance for the conservation in situ, is recognized for its striking geographical beauty, which holds considerable amounts of potential in terms of ecotourism and its associated revenue. Other countries, such as Costa Rica, provide examples of how this resource can be utilised.

Greenpeace has started a campaign for the protection of Patagonia, in order to ensure that this part of the country is not degraded in the way that other areas have been. Easter Island and the center-south zone of , in other times a great source of biodiversity, are paradigmatic examples of the degradation of natural resources that can take place with the “short-term-approach” that national development policies have traditionally followed.

The threats that now face Chilean Patagonia are leading us to an unsustainable future. Mining, industrial, aquacultural activities and the introduction of exotic species, lead to questions as to whether the natural resources’ can regenerate in the long term. The degredation of the area is exacerbated by forest fires and erosion.

Chile possesses invaluable natural capital in Patagonia. The nature that grows in the southern zone of our country can, and should, be the basis for a sustainable future. Ignorance and the short-term approach of selling off resources in order to get profits from investments in the shortest time possible are threats that must now be addressed.

These last few years in Chile, we have witnessed an anti-conservation rise in Patagonia. Pumalín Park has been affected by many official hindrances that have made its transfer to a Chilean foundation difficult. Meanwhile, Valle Chacabuco Ranch was in danger, when a group of businessmen pushed to acquire it and exploit it, regardless of the potential degradation to its lands and ecosystems. A great part of Patagonian resources have no alternative use and the weather conditions allow few productive options. The sensible path to take, from a social and long-term point of view, is conservation.

This document, the title of which we have borrowed from the novel by the renowned Colombian Nobel Prize Winner Gabriel García Marquez, that tells the story of a death predicted from the very first chapter and yet does not move the actors to stop it, has been elaborated by Sebastián Tramón, Greenpeace Investigator, under the close supervision of Rodrigo Herrera, Greenpeace Forest Campaign Coordinator. The pictures and design were overseen by Samuel Leiva, Forest Campaign Assistant. The definite text owes its form to the valuable comments of Peter Hartman, CODEF XI Region Subsidiary Director, and Fernando Ramírez, “Bosque Antiguo” Director; who generously participated in this initiative, sharing their knowledge, view and experiences, which we have tried to gather accurately in this report.

The document, which compiles information from different studies and researches, has been structured into three chapters, and also a set of recommendations. In the first chapter, the main historical and socio-cultural aspects of the Chilean Patagonia are summarized. In the same way, the value of its ecosystems and its richness in flora and fauna are described. The second chapter

2 analyzes the main threats that Greenpeace sees in the region. In chapter three, the current state of protection and conservation of Chilean Patagonia is analyzed, whether through the SNASPE, priority sites, or through private initiatives. Finally, a set of recommendations is presented, which have been generated to encourage a prolific dialogue among all the actors interested in protecting this part of the national territory.

We trust that this document will be a contribution to the necessary discussion about the future of this part of our territory, which is physically so distant, for those who live to the north of it, but so close to our concerns.

Our commitment, like Argos, the guardian of the skies, is to keep our eyes constantly open and alert to whatever happens out there.

Gonzalo Villarino H. Executive Director

3 INDEX

INDEX...... 4

FIRST CHAPTER: CHILEAN PATAGONIA, ONE OF THE MOST BEAUTIFUL PLACES ON EARTH...... 6

1. GENERAL INFORMATION……………………………………………………………………………………………………………………………………………………..6 1.1. Geographic Location of Chilean Patagonia……………………………………………………………………………………………………………….6 1.2. Brief Geographic and Weather Description………………………………………………………………………………………………………………7 1.3. Native People of Chilean Patagonia and their later colonization…………………………………………………………………………………8 2. ENVIRONMENTAL VALUE OF CHILEAN PATAGONIA..……………………………………………………………………………………………….8 2.1. Ecosystems.…………………………………………………………………………………………………………………………………………………………8 2.2. Forests and Flora.………………………………………………………………………………………………………………………………………………..9 2.3. Fauna.……………………………………………………………………………………………………………………………………………………………….10 2.4. Land Resource……………………………………………………………………………………………………………………………………………………11 2.5. Water Resource.…………………………………………………………………………………………………………………………………………………12

SECOND CHAPTER: MAIN THREATS IN CHILEAN PATAGONIA.…………………………………………………………………….14

1. The threat over Template Forests………………………………………………………………………………………………………………………..14 1.1. Unsustainable Forest Exploitation…………………………………………………………………………………………………………………………15 1.2. Dealerships of Fiscal Grounds under agreement between Private Investors and Government bodies………………………….16 1.3. Use of Firewood………………………………………………………………………………………………………………………………………………...17 1.4. Exotic Plantations Establishment………………………………………………………………………………………………………………………….18 1.5. Guanaco Farming and Shepherding…………………………………………………………………………………………………………………….18 2. Forest Fires, a Historic and Latent Threat.…………………………………………………………………………………………………………..18 3. Erosion and Desertification………………………………………………………………………………………………………………………………..19 4. Mining in Patagonia…………………………………………………………………………………………………………………………………………..19 5. Salmon Farming in Patagonia…………………………………………………………………………………………………………………………….22 6. The Threat of Introduced Species………………………………………………………………………………………………………………………26 7. The Impact of Fishing and Hotel Industry…………………………………………………………………………………………………………..27 8. The roads that divide the forests…………………………………………………………………………………………………………………...... 28 9. Hydroelectric Mega-Projects……………………………………………………………………………………………………………………………..28 10. Climatic Change and its effect over Patagonia…………………………………………………………………………………………………….29 11. Ozone Layer Reduction…………………………………………………………………………………………………………………………………….30

THIRD CHAPTER: STATE OF CONSERVATION AND PROTECTION IN PATAGONIA…………………………………………..31

1. Area and Types of Public Protection Zones...... ………………………………………………………………………………………………….31 2. Private Protected Wild Areas……………………………………………………………………………………………………………………………32 3. High-Priority Sites within the Regional Biodiversity Strategies…………………………………………………………………………….33 4. International Projects of Conservation and Protection in Chilean Patagonia…………………………………………………………34

RECOMMENDATIONS……………………………………………………………………………………………………………………….36

Regarding to the Protection of Patagonia……………………………………………………………………………………………………………………..36

4 Regarding to the threats that endanger Patagonia……………………………………….………………………………………………………………36

ANNEXES……………………………………………………………………………………………………………………………………...38

Annex 1: Climates in Chilean Patagonia……………………………………………………………………………………………………………………….38 Annex 2: Use of the area in Chilean Patagonia…………………………………………………………………………………………………………….38 Annex 3: Fauna in Chilean Patagonia………………………………………………………………………………………………………………………….38 Annex 4: Hydric Resources in Chilean Patagonia………………………………………………………………………………………………………….39 Annex 5: Property of the Rights over Water………………………………………………………………………………………………………………..40 Annex 6: Production of Sawn Wood…………………………………………………………………………………………………………………………..40 Annex 7: Sawmill Companies in Chilean Patagonia..……………………………………………………………………………………………………41 Annex 8: Currently Existing Regional Development Strategies in Chilean Patagonia……………………………………………………….42 Annex 9: Sectors in Aysén Region where forest exploitations under breach of management plans were detected…………….43 Annex 10: Fires in Chilean Patagonia during the period 1978 – 1990……………………………………………………………………………43 Annex 11: SNASPE in Chilean Patagonia……………………………………………………………………………………………………………………43 Annex 12: Elements Protected by the National Monuments Council……………………………………………………………………………..44 Annex 13: Requirements to declare a zone as Biosphere Reserve………………………………………………………………………………..45 Annex 14: Requirements to declare a zone as Heritage of the Humankind……………………………………………………………………45

REFERENCES……………………………………………………………………………………………………………………………….47

CHART INDEX

¾ STRUCTURE OF LAND PROPERTY AND RIGHTS OVER WATER IN PATAGONIA 13 ¾ TRILLIUM, THE PROJECT THAT AIMED TO DESTROY THE LENGA FORESTS IN 15 ¾ OIL SPILLS IN CHILEAN PATAGONIA: ACCIDENTS OR DISASTERS? 20 ¾ CURRENT MINING CONFLICTS IN PATAGONIA 21 ¾ THE UNSUSTAINABLE ALUMYSA MEGA PROJECT 28 ¾ PROMOTION POLICY IN CHILEAN PATAGONIA 30 ¾ COULD CHILEAN PATAGONIA ASPIRE TO BE A WORLD BIOSPHERE RESERVE OR A NATURAL HUMANKIND’S HERITAGE? 35

TEXTS OF PHOTOGRAPHS

Page 07 The picture shows the disaffected area in National Park Isla Magdalena in Aysen Region, where human settlements were established and which is currently known as Puerto Gaviota (Source: Greenpeace Documentation MVArctic Sunrise, 2004)

Page 17 Substitution of native forest in Nahuelbuta Mountains – Araucanía Region, a situation which might be repeated in Chilean Patagonia (Source: Greenpeace Documentation MVArctic Sunrise, 2004)

Page 29 Beaver Dams in Tierra del Fuego. Picture by Rodrigo Herrera.

5 FIRST CHAPTER: CHILEAN PATAGONIA, ONE OF THE MOST BEAUTIFUL PLACES ON EARTH

1. GENERAL INFORMATION 1.1. Geographic Location of Chilean Patagonia

For this document, we will understand Chilean Patagonia as the geographic region that goes from 43° 38’ until 56° latitude South1 (see image 1), and includes Región de Aysén del General Carlos Ibañez del Campo (Aysén Region) and Región de Magallanes y la Antártica Chilena (Magallanes Region). Unquestionably, and in concordance with different authors, the plurality of ecosystems present in the Chilean Patagonia surpasses the current administrative geopolitical divisions; but at the same time, we must admit that there is no national agreement on what should be understood when we talk about Chilean Patagonia.

Image 1. Location of Chilean Patagonia

By adding the Aysén and Magallanes regions, Chilean Patagonia covers 240.791,6 km2 (see figure 1); that is to say, the third part of the continental area of Chile (756.096,3 km2). On its own, Aysén and Magallanes regions have 108.494,4 km2 and 132.297,2 km2, respectively2. According to the literature referring to the geopolitical and administrative division of the country, the Chilean Patagonia does not include the Antarctic territory, so it is only considered as part of it the continental area of Magallanes Region.

Percentage of National Territory

32%

68%

Rest of the Country Patagonia

Figure 1: Territorial percentage of Patagonia with regard to the national territory. Source: Censo 2002, INE.

6 1.2. Brief Geographic and Weather Description Chilean Patagonia has a special geography conformed by a very fragmented sector of islands, channels, gulfs, peninsulas, archipelagos, estuaries and fiords, which are the result of tectonic processes of sinking, the action of glaciers and the penetration of the sea through western valleys3. In a second sector, there are the Patagonian Mountains; and finally, a third eastern sector, known as East Patagonia, where Patagonian Steppe stands out, a zone of plains and valleys originated by glaciers. Its coastline, due to the intricate geography of fiords and channels, turns into the bigger coast area in the southern cone4. Tierra del Fuego Island also stands out as the largest island in South America, located in Magallanes Region, covered by vast pampas due to glacier erosion, which was, in some areas, extremely strong, forming even the Strait of Magellan5 that was used in the past as the main way of sea communication between Pacific and Atlantic Oceans. Chilean Patagonia differs from the rest of the national territory in its geographic composition, because from the four characteristic components of the rest of the country (Andes Mountains, Central Valley, Coast Mountains and Coastal Plains), it is possible to clearly identify only the Patagonian Andes Mountains, as in the northern area of Patagonia, the Coast Mountains conforms the coastal archipelagos and the central valley corresponds to the Channel of Moraleda, while in the southern zone we can find the Patagonian

Andes and the steppe6. In the Chilean Patagonian Andes stand out majestic mountains, hills and mounts of great heights, such as San Valentin hill (4.058 meters above sea level), Hyades (3.078 meters above sea level), Fitz-Roy (3.340 meters above sea level), and Torres del Paine (3.000 meters above sea level).

Given the existing geographic conditions and the great extension of the Chilean Patagonia, it is possible to find a great variety of climates: Semi-Arid Cold Steppe Climate, Cold Height Climate, Cold Template and Tundra Wet Climate, and Ocean Cold Climate7. (Annex 1). In terms of climate, Patagonia is a zone that is strongly affected by the winds of West (“westerlies”) coming from the . These are responsible for the high rainfalls in the coastline, reaching its highest level at the high zone of Andes

Mountains8, as the result of the interaction between these mountains and the winds of West. In the west slope of the mountains, we can observe much lower rainfall levels, producing a great pluviometric difference between both sides of the mountains. For instance, in the southwestern area of Chilean Patagonia, rainfalls reach up to 8.000 mm9 in the ice fields, and in Central Patagonia the average rate is 300 mm, such as in Punta Dungeness. That is why there is an important climatic division between the mountains’ eastern and western slopes, the first one being a wide temperature range and low rainfall zone, and the second one, a high rainfall and lesser temperature variation zone. All this comes up as a gradient from West to East, where rainfall and humidity decrease, and this gradient is responsible for the changes in vegetation that are visible in the Patagonia; that is to say, while in the western zone there are Lenga forests (Nothofagus pumilio) and Magallanes Coigüe (Nothofagus betuloides), in the eastern zone there is the Patagonian Steppe, where grass and gramineas growa. Certainly, water resources and the southern and northern ice fields are part of the climate and geography of the Chilean Patagonia, but at the same time are important concerns for the world water shortage predicted by scientists10 (see section 2.5.)

The great variety of climates produces variations in temperature that go from the extreme 31,4°C during the summer to –27,7°C during the winter11. That is why there are zones in Western Chilean Patagonia, extremely inhospitable to be inhabited by humans12, curiously barely studied but with a high protection level, while in the eastern zone, where conditions are less adverse for the establishment of human settlements, there is a clear deterioration due to activities like farming.

In the southeastern area of Patagonia there is a phenomena of great importance with respect to the activities under development: the wind. In cities like , Porvenir and Puerto , it is common to record wind runs over 100 km/h, turning into an important factor to consider when developing certain activities13.

a Gramineans: Grass-Type Plants. The most well known species are wheat, rice and corn.

7 Lastly, and due to the high latitude of South Patagonia (48° L.S.), the length of days greatly varies between the months of summer and winter. During the winter, for example, days have an average duration of 7,45 hours (the sun rises at 8:54 am and it gets dark at 4:59 pm), and during the summer, the day lasts 16,41 hours (the sun rises at 4:28 am and it sets at 9:09 pm). This difference gets bigger as the latitude14 increases.

1.3. Native People of Chilean Patagonia and their later colonization

Patagonia is known as the territory of Patagones, first indigenous tribes to live in the southern zone of the American territory, especially in the steppes zone. The Spanish, due to their height and the big footprints their shoes left, called them Patagones15. The Indian tribes that inhabited Patagonia were: the “Qawashqar” or “Alacalufes” in the archipelagos zone; the “Chonos” in the north of ; the “Aonikenk”, “Patagones” or “Tehuelches” that lived specially in the steppe; the “Selknam” in Tierra del Fuego; and even more to the south of Tierra del Fuego there were the “Yamana”. The Chonos in Gualtecas Islands, and Alacalufes in the islands even more to the south, survived thanks to fishing and recollecting seafood in small ships. Meanwhile, Patagones, who lived in the Patagonian plateau and Patagonian Andes, were nomads mainly dedicated to hunting guanaco16,17.

The contact and the relationships established between native people and the colonists was limited and was produced in a short period of time, mainly because indigenous people had levels of organization corresponding to clans, unlike Incas or Mayas. In addition, their populations were small and could not take the arrival of other invading cultures. These invading cultures were the main cause of the important drop in the number of native people, resulting in the few members of Alacalufe culture found in Puerto Eden.

Chilean Patagonia’s geographic and climatic conditions turned into the main obstacles for its colonization. It is considered that the first colonists arrived to the northern area of Chilean Patagonia in the late 19th Century, settling down in the area nearby , with which they had commercial exchange19; while in the western area, or archipelago’s area, the populated centers are scarce and have limited population, mainly due to the hard conditions for human life. The first populated center in the Patagonia’s northern area was Melinka, and in the beginning of 20th Century the cities of Puerto Aysén (1904), Balmaceda (1917) and Coyhaique (1929) were founded. In the Patagonia’s southern area, the populating process started in Magellan Strait, which was navigated by Ferdinand of Magellan in 1521. In 1843, when Chile had already gained its independency, Fuerte Bulnes was founded, but its population moved five years later to Punta Arenas, a zone that offered better conditions for farming and cattle breeding. Punta Arenas was originally a military settlement and a penitentiary colony, and since 1852 the colonization process and the exploitation of local resources began, bringing about the establishment of the first cattle breeding ranches. The growth of the population in the Patagonia’s southern area is closely related to the active traffic of ships through the Magellan Strait. In a first stage, the populating process’ main characteristic was the presence of great extensions of cattle breeding terrain named estancias (ranches). The colonization of this area produced the foundation of Porvenir (1894) and (1911).

2. ENVIRONMENTAL VALUE OF CHILEAN PATAGONIA

2.1 Ecosystems

There is a mosaic of ecoregions in the Chilean Patagonia, with a rich variety of ecosystems, a large number of endemic species and landscapes that are important for world conservation20,21. Thus, even though Chilean Patagonia has been severely altered, this important area is internationally recognized as one of the few places where the contact between human beings and intact nature is still possible, and where it is also possible to travel across vast territories in the middle of a natural environment, without the presence of human settlements22.

8 Organizations like World Wildlife Found (WWF) have manifested their concern about the state of conservation of the ecosystems in Chilean Patagonia. Regarding the terrestrial ecosystems, the meadows of the steppe support a distinctive regional community of mammals and birds, including very rare genus and families. The grasslands in Patagonia are in a vulnerable state23; and temperate rainforests, just like the meadows, are also considered in danger at a regional level and in vulnerable state, at a worldwide level24. In the next chapter, the threats to the temperate forests in Chilean Patagonia are considered.

As for sea ecosystems, Los Chonos Archipelago is considered as an ecosystem to be conserved at a regional level; just like the

Magallanes and Última Esperanza area25. The special characteristics of the interior channel’s water (temperature, salinity and substrate) generate a great diversification of the sea habitat in Patagonia with regard to the coasts of center and north Chile26. In fact, an expedition in 2003 to the fiords in the northern end of Patagonia, discovered a blue whale feeding and breeding zone, maybe the most important zone for this species in the south hemisphere27. Rodrigo Hucke-Gaete, scientist from Instituto Ballena Azul, has stated that densities significantly bigger than previous expeditions were reported, probably, because the channel’s waters in the south of Chile are fed by waters from glaciers thaw and large rivers, a complex system is formed, which influences the growth of phytoplankton28.

Researches carried out by The Nature Conservancy (TNC) and the Agency for International Development (USAID)b point out that a world-unique eco-region is formed from Taito Peninsula to , and that unfortunately, this region has been barely studied29.

2.2 Forests and Flora.

According to the Land Registry and Evaluation of Native Vegetation Resources of Chile30 (see chart 1), forests cover most of the area in Chilean Patagonia, with 31,2% of total area. Just to point out, surfaces corresponding to Snows and Glaciers, and Areas lacking in Vegetation, are also important, and can hardly have a different kind of alternative use. These areas correspond to 27,9% of the area. We can also say that there are 317.896 hectares in Patagonia over which there still is not certain knowledge about what the present resources are. (Annex 2).

Chart 1 Area and Kind of Use in Patagonia Use Area (ha) Percentage (%) Urban and Industrial Areas 5.188 0,02 Farming Terrains 3.444 0,01 Meadows and Grasslands 4.490.657 18,79 Forests 7.449.061 31,17 Marshes 4.251.804 17,79 Areas Lacking in Vegetation 2.878.863 12,05 Snows and Glaciers 3.777.505 15,81 Water Bodies 720.214 3,01 Not Reconnoitered Areas 317.896 1,33 Total 23.894.632 100 Source: Elaborated thanks to CONAF; CONAMA; BIRF and Universidad Austral. 1999.

Although in Patagonia there is not the variety of species that can be found in the tropical forests, it is still possible to find a great number of endemic species. Next, we point out some characteristics of the endemic richness of Chilean Patagonia:

b USAID= U.S. Agency for International Development (Agencia Norteamericana para el desarrollo Internacional).

9 ¾ Lichens are mainly concentrated in Magallanes Region, with 35 genus and 132 species; while in Aysén Region there are 16

genus and 72 species31.

¾ Seaweeds in southern Patagonia (Magallanes Region) have 50% endemism32.

¾ 30% of vascular plants (1200 species) are endemic, including many genus33.

¾ Non-vascular plants (hepatic) in Magallanes Region are in the first national place with 207 species, and Aysén Region has the third place in number of species, with a total of 85 species. ¾ Main gymnospermsc (conifers) present in Patagonia are: Las Guaitecas Cypress (Pilgerodendrun uviferun, CITES Appendix I), Mañio macho (Saxegothea conspicua), Mañio Hembra (Podocarpus nubigena) and Dwarf Cypress (Lepidothamnus fonckii). d ¾ Vascular plants that form the flora of Magallanes are 776 native species (85%), from which 30,9% are monocotyledons35, . Remaining 15% are introduced species; that is to say, 132 species.

There are six species with conservation problems in Chilean Patagonia, two in Aysén Region and 4 in Magallanes Region (see chart 2).

Chart 2 Flora with Conservation Problems Scientific name Common name Category Region

Hebe salicifolia Hebe Rare Aysén

Schinus marchandii Laura Rare Aysén

Adesmia campestris Paramela de Puangue Rare Magallanes

Hebe salicifolia Hebe Rare Magallanes

Mulinum valentinii Mulino Rare Magallanes

Benthamiella spp. Benthamiella Rare Magallanes

Source: Benoit, 1989. CONAF.

2.3. Fauna

The number of species of terrestrial vertebrates in Aysén Region is 261, of which 190 are birds, 50 mammals, 14 amphibian and 7 reptiles. In Magallanes Region there are 3 existing amphibians, 6 reptiles, 197 birds and 41 mammals, making a total of 247 species.

In Aysén Region there are 4 endemic species, and 3 in Magallanes37 (Annex 3).

29,8% of the species in Aysén Region (78 species) find themselves with conservation problems: 8 are in danger of extinctione, 21 vulnerablef, 15 rareg, 18 not properly knownh, 2 out of dangeri and 6 not defined38. In Magallanes Region there is a total of 61 species with problems, breaking down in as 26 mammals, 24 birds, 4 reptiles, 1 amphibian and 6 fishes39 (see chart 3).

c Gymnosperms: Plants with unprotected seed (Conifer) d Monocotyledon: Plants which are mainly herbs, of which seed has only one cotyledon e Those species with a scarce number of specimens in nature and which existence is severely threatened if cause factors continue to operate f Those species that could go into the category in danger in the near future, if the causes of its diminishment continue to operate. g Those species that apparently have also been scarce, and are in the last states of its natural extinction. Or species with a very limited distribution, with little defenses and small power of adaptation. h Those species that are supposedly in one of the previous categories, but which status will be defined through future researches. i Those species that show a state of satisfactory conservation, or that were in one of the previous categories, but currently are relatively safe, thanks to the effective conservation measures taken.

10 Some of the species in danger of extinction are: huemul (Hippocamelus bisulcus), tuco-tuco of Aysén (Ctenpmys colburni), huillín (Lutra provocax), colo-colo cat (Lynchailurus colocolo), canquén colorado (Chloëphaga rubidiceps) and coscoroba swan (Coscoroba coscoroba).

Chart 3

Species and Regions with Conservation Problems Mammals Birds Reptiles Amphibians Fishes Total Aysén 25 28 3 14 8 78 Magallanes 26 24 4 1 6 61 Source: Informe País 2002 and SAG 1999.

With respect to the sea mammals, there are 35 species in Magallanes Region, 18 of which have undefined status. From the remaining 17 species, most of them habitual in the Region and corresponding to the 37% of the total species in Chile, stands out the population of walruses, reaching up to 13.600 individuals (6,3% of Chilean population); the population of fine southern wolves reaching up to 103.000 individuals (approximately 95% of Chilean population); and populations practically unaltered of chungungo and huillín. In specific areas, such as Parry Fiord, the permanent presence of the elephant seal, leopard seal and bigger cetaceans40. The presence of humpback whales and killer whales is also important. All this represents an area with high priority for conservation.

2.4. Land Resource41

Due to the diversity of climates in Chilean Patagonia and the great extension of the territory, it is possible to find a great variety of lands, which support different types of vegetation.

The lands in the archipelagos zone are swamplands, with a high content of organic matter and humidity. These lands are called turbas or turberas (Peat Bogs), and are located, mainly, in depressed terrain areas. In the most exposed areas, we can find the tundra lands that correspond to rocky grounds, which have been intensively eroded by the action of ice and weather, even to the point of finding the rock itself in the surface. These two lands mentioned are sterile for agriculture.

In Chilean Eastern Patagonia and Tierra del Fuego we can find the “Cold Meadow Lands”, where farming has been developed. These lands are thin, and grass and gramineans grow, which serve as food for the cattle. It is also possible to find highly fertile lands, originated from volcanic ashes.

The wrong use of the lands in Chilean Patagonia has produced big erosive processes of anthropic origin. The eroded lands cover an area of 9.512.300 hectares42; that is to say, 40% of the total area of Patagoni has suffered from some level of erosion (see chart 4).

Chart 4 Level of erosion in the lands of Patagonia Regional Eroded Area by Category Percentage of Eroded Region (Thousands of Hectares) Region Severe Moderate Slight Severe Moderate Slight Aysén 1.055,1 2.179,5 1.389,9 9,8 20,3 13,0 Magallanes 900,0 3.463,5 524,3 8,0 30,8 4,7 Total Patagonia 1.955,1 5.643,0 1.914,2 8,1 23,4 7,9

11 Source: IREN, 1979

2.5. Water Resource

Water resources in Chilean Patagonia shape the second largest fresh water reservoir in the planet, and are also the place to find the greatest ice fields in the Southern Hemisphere43. (see chart 5). There are two ice fields44, the northernmost, called ”Campos de

Hielo Norte”, that covers a area of 4.200 km2, and the southernmost, called “Campos de Hielo Sur”, with an area of 13.000 km2.

Glaciers in Chilean Patagonia correspond to 90% of the total glacier counted in Chile45.

Rivers and lakes are also of great importance. For instance, the most plentiful in the country is , with 1.133 m3/sec46, representing 10,8% of the total flow of the rivers in Aysén Region; and O’Higgins and General Carrera lakes, which directly connect with Argentina, have the greatest area in the country47 (Annex 4). It is also worth noting that us the second greatest lake in South America, after Titicaca Lake, and is the deepest lake in Chile.

Chart 5 Main Water Resources in Patagonia Average Flow Region Name (m3/sec) Area (Km2) Aysén Aysén River 628 11.674 (basin) Aysén Baker River 875 26.726(basin) Aysén 574 14.760(basin) O'Higgins Lake Aysén (international) ------1.059 Cochrane Lake Aysén (international) ------320 General Carrera Lake Aysén (international) ------1.840 Campos de Hielo Aysén Norte ------4.200 Aysén- Campos de Hielos Magallanes Sur ------13.000 Source: INE and MIDEPLAN, 2001.

In the Aysén Region there are 122 lakes with glacier origin, of which 88,6% have an area between 3 and 20 Km2. These lakes form the 30,4% of those existing in Chile. Unfortunately, only 8 lakes have been studied, 4 of them in detail. Besides the great volume of water contained in these lakes in Aysén, they stay in scientifically acceptable conditions, their geologic origin is recent, they are oligotrophic, without a history of use, and have natural systems barely touched, with a high aesthetic value. They are considered unique for the chemical and biological balance in their cold (14°), pure waters, with low alkalinity, containing a low level of organic matter and nutrients, thanks to the regulation by the surrounding forest48.

12 Chart 6 Owners of rights over non-consumptive permanent water constituted in Aysén Region. Owner Flow (m3/sec) Percentage Others 145,635 4,09% ENDESA 3.419,1 95,91% Total in Region 3.564,735 100,00% Source: Dirección General de Aguas. 1997

Structure of Land Property and Rights over Water in Patagonia

A great part of the territory forming Patagonia is still property of the State. In Magallanes Region, 72% of the regional area; that is to say, 9.525.398,4 hectares are property of the State, and in Aysén Region, this rises to 82%; which means, 8.896.540,8 hectares. Taking these two regions, we can conclude that Patagonia has 76,5% (18.421.939,2 hectares) in property of the Statei. On the other hand, in this scenario, carrying out activities of conservation and protection seems to be an attainable goal, but it would depend on the conditions of the dealerships given for the future, the classification of the projects, and the way they would be developed, taking care that the activities to be carried out would not have a negative impact on Chilean Patagonia. (See Image 2).

Property of Patagonia

State Private 77% 23%

Image 2 Source: Real Estate Department.

Regarding the rights over water with permanent non-consumptive purposesj for hydroelectricity, Patagonia has a total flow of 15.190,7m3/sec, of which 12.3537m3/sec is located in Aysén Region. The flow that is currently used only ascends up to 17,7 m3/sec, while the remaining is not being used. From this remaining portion, 3.564,735 m3/sec are constituted and 95,9% corresponds to ENDESAii (see chart 6) (Annex 5). This shows that ENDESA already has enough rights for the generation of 4.800 megawatts through hydroelectric plants, while companies like Colbun and Gener may have the rights for the generation of 1.300 megawattsiii. (See Image 3).

j Non-consumptive use: It allows to use the water without consuming it and forces to restitute it in the form determined by the act of acquisition or constitution of the rights. General Office of Waters, DGA.

13 Property of Rights over Non-Consumptive W ater, A y sen. 1997

Other 4%

ENDESA 96%

Image 3 Source: DGA

SECOND CHAPTER: MAIN THREATS IN CHILEAN PATAGONIA

1. The Threats to the Temperate Forests

Chilean Patagonia has one of the five most important temperate forests in the world and the only one in South America52. Nearly a third of the most pristine, unaltered temperate forest in the world can be found in Patagonia53, and is considered to have a high conservation value54. These forests have special characteristics, such a high productivity, great capacity for storing carbon, high endemism, and evolutional importance, due to their isolation from other forest areas.

According to the Native Forest Record, the area covered by native forests in Patagonia reaches 7.4 million hectares55,56; representing 31% of the total area of Patagonia and 55% of the area of native forests in the country57. The main forest types are Lenga, Siempreverde, Magallanes Coigüe and Las Guaitecas Cypress (see chart 7).

Chart 7 Area in Patagonia and Forest Type Total Percentage of Forest Type Aysén Region Magallanes Region Patagonia Forests Las Guaitecas Cypress 514.105 418.318 932.423 13% Lenga 1.440.702 1.124.562 2.565.264 34% Magallanes Coigüe 578.943 1.031.962 1.610.905 22% Siempreverde 2.281.782 50.636 2.332.418 31% Source: INFO 2002

As for the area of the most pristine forests, known as Frontier Forests, it is thought that in Patagonia there are around 2.7 million hectares in this condition, considering an area bigger than 5.000 hectares58. These forests are very important from the perspective of climatic regulation, and as a fundamental part of the natural landscape. In Aysén Region, there are 1.7 million hectares of frontier forests (the largest area in the country); and in Magallanes Region, the area is 0.9 million hectares. The percentage of frontier forests in the State-Protected Wild Areas National System (SNASPE) and in the Private-Protected Areas Network (Red de Áreas Privadas Protegidas, RAPP) within the limits of Aysén Region is 31,4% at a regional level and 12,5% at a national level; while in

Magallanes Region, the percentage is 13,9% and 2,9% at a regional and national level, respectively59. Previous figures show the importance that these forests should have in the planning of protected areas, and the role that the private sector also has to play in protecting areas not covered by the state.

14 1.1. Unsustainable Forest Exploitation

It has not been possible in Chile to consider the forests from the point of view of ecosystem. According to the legislation in force, there is a classification of the forests; that is production forests, protection forests and preservation forests, without considering relevant aspects such as the multi-functionality and the multiple use. As a matter of fact, according to the Foundation for Agrarian Innovation, depending on the Department of Agriculture, 23% of native forests in Patagonia; that is to say, 1.7 million hectares are productive, whether commercially or potentially commercial60. Presenting a figure like this involves some risks, considering that native forests in Chile lack important instruments like a promotion and protection law, as well as the absence of clarity about the goals of forest projects, a real investigation on the dynamic of native forests and the intensity of the harvest, or forestry cutting down methods depending on each site. Protected forests in Patagonia correspond to 2.5 million hectares61, and are located next to protection areas in watercourses and fragile areas. These are protected since decades by general laws, like the 1931 Law of Forests.

Forests in Patagonia are mostly located on use capacity class VIII lands62, and it should not be permitted to develop unsustainable projects on this type of land.

With respect to forest exploitation itself, it is thought that the average performance of the forests is 178 m3ssck /ha. From this amount, 33% corresponds to wood for sawing, 12% to wood for pulp, and 53% is set aside for firewood. In Chilean Patagonia, the total usable wood for sawing corresponds to a total volume of 104.465.379 m3ssc63, a situation that makes forestry companies consider the forests of Patagonia as an inexhaustible resource. The woods used are considered to be of high quality, with export prices from US$503 per m3 of Lenga sawn wood, up to furniture made from the same wood priced for US$4.975. Prices can go up to

US$42064 in the internal market.

In Chilean Patagonia, elaborated sawn wood basically corresponds to native forest wood and is mainly concentrated in one specie:

Lenga. Its production over year 2002 was 61.379 m3 (Annex 6), using 145.370 m3 ssc, becoming the second biggest sawn wood production area, after . An important forestry sector is being developed in Patagonia, and in case of not having the effective control and inspection measures, can turn into a serious threat to the native forests, based on the level of its ecosystems and its fragility.

We must consider that in Chilean Patagonia there are 40 sawing companies (20 in Aysén and 20 in Magallanes) that process an important volume of wood (Annex 7); only one does not work with native species65. In Chilean Patagonia there are no certified companies with the FSCl certification, which shows that wood has come from the sustainable use of the forests.

TRILLIUM, THE PROJECT THAT THREATENED ALL THE LENGA FORESTS IN TIERRA DEL FUEGO In 1994, the American company Forestal Trillium settled down in Tierra del Fuego, with the polemic Río Cóndor Project, with an investment of US$100 million. The project, which area of influence covered 270.000 hectares, included the exploitation, in a first stage, of 103.000 hectares of native forest, considered as the only sub-Antarctic lenga forestsiv. The lands belonged to Trillium until December 2003, being transferred to one of the biggest investment banks in the world, Goldman Sachs, because Trillium could not afford unpaid promissory notes for US$ 30 millions. There was also a strong national and international campaign in different sectors, scientific and environmental, that questioned the sustainability of this project. Finally, on September 10th, 2004, the rights over lands were granted to the Wildlife Conservation Society (WCS), and this way, the polemic project was closed under the criteria of conservation and protection. After Trillium and other native forest extraction projects, questions have arisen about the sustainability of exploiting Lenga. In 1995, France’s Office National de Forèts carried out research, stating that lenga in Magallanes would run out in 25 years if current exploitation rates continued and that only 500.000 hectares could be industrially exploitedv. As a result, in order to avoid the destruction of the forest as the result of inadequate forest exploitation in Patagonia, many techniques have been developed, which allow exploiting the forests in a way that ensures their sustainability. These techniques are not applied in every forest though, but, according to some research, when they are, protective tree felling or selective cutting should avoid the degradation of the Lenga forests in Patagonia. k ssc: solid without bark l Forest Stewardship Council - FSC is an international, nongovernmental, independent and non profit-making organization. The forest certification, supported by FSC, guarantees an exploitation of forests and plantations with processes that consider, in a balanced way, social, environmental and economic aspects.

15 One of the species of greatest value in Patagonia is the Las Guaitecas Cypress (Pilgerodendrum uviferum), which leads the vegetal composition of the archipelagos. This species was incorporated into CITES in the year 1975, due to its over exploitation, moved by the extremely high quality of its wood, which is practically unrottable68 and has been destined mainly to the construction of poles, for farming ranches of Southern Patagonia and also for vineyards in central Chile. Its listing on Appendix suggests that is close even to the point of extinction, which means that is must be protected by a very strict regulation in order not to jeopardize its survival. In addition, it was said that its marketing will only be authorized under exceptional circumstances69.

Greenpeace has identified zones where Las Guaitecas Cypress is still being exploited. Among them, stand out Vargas Lake, Quetro Lake-Pascua River and Tortel Bay. In this last one, there is a Las Guaitecas Cypress sawmill, and in its origins, locals admit that it was a wood camp in the middle of cypress fields peat bogs, from where the cypress poles were transported to the shipping place and loaded into Navy Ships70 heading to Punta Arenas. There are zones in Patagonia difficult to get to, where it is not used to perform effective controls; for example, in Alacalufes National Reserve. It is well known that in this place, illegal exploitation of wood, mainly Las Guaitecas Cypress, as well as indiscriminate hunting of animal species like wolves and otters71, is taking place. As in most cases, trees are cut by poor people living in the zone. As in the majority of cases, there is probably a network behind these operations but little information is currently available.

1.2. Dealerships of Fiscal Terrains under agreement between the Private Sector and Government Organizations

The authorities should carefully study dealerships of fiscal terrains. Next, we present two clear examples of how current dealership policy is being developed in Aysén Region, and how this could turn into a threat for the forests, considering the low inspection capacity of public organizations and the level of demands to productive activities that contrast with the goal of keeping the environmental quality in Chilean Patagonia.

Patagonia Azul Program is being carried out in Aysén Region, as the result of the signing of an agreement between CORFO and the Department of National Goods. The project will allow granting lands to investors in the tourism sector through a sale-dealership system72. One of the most characteristic cases are the 30.000 hectares granted to the Nalcayec S.A. company, which plans the construction of a hotel in Nalcayec Island, in the archipelagos area of the region.

On the other hand, the Department of National Goods is in position to grant fiscal terrains for the development of productive activities, whether they are farming, forestry, or other. This situation is supported by the Regional Development Strategy, which points out as one of the important elements “the definite incorporation of fiscal lands to the process of production generation, whether it be through the transference to the private sector or other systems.” 73 (Annex 8). It is mentioned, as an example, the agreement signed between the Department of National Goods, CONAF and the forestry company Maderas Aysén S.A. The lands, from capacity of use class V to VIII, which were given in dealership, equal to 27.190 hectares in the Río Ibañez commune74. For the exploitation, a dealership of US$7.000.000 for a period of 30 years is expected, becoming a “characteristic” project for the region and “priority” in the regional development agenda.

According to Mr. Julio Stuardo, Regional Secretary of the Department of National Goods, the dealership policy “is a strategic chance of public-private linking regarding a better future for the forests of Aysén” 75. However, we ask ourselves…what about the problems to inspect the management plans?, what are the regulations for private sector in Patagonia?, what are the limits in Patagonia to take investment alternatives that affect the environmental value of this valuable heritage?, what is the productive load capacity Patagonia can bear? These questions remain unanswered. It is well known that the Forest Corporation’s (CONAF) capacity to inspect the management plans given to the forestry companies is low and insufficient, as well as their inspection of native forest wood illegal extraction. This is not only the opinion of environmental organizations such as Greenpeace, but also from Members of the Parliament such as Carlos Recondo (member of Alerce investigation commission), who declared that “the inspection capacity of CONAF is insufficient” 76, and Mario Varela77, who said that “the need to have a structure to improve the inspection activity of CONAF is evident”. Greenpeace documented part of Patagonia during

16 2004, detecting zones where management plans have not been enforced as for the extraction of Lenga, specially in the zone of Lagunas Valley and Cajon River in Aysén Region (Annex 9).

1.3. Use of Firewood

Firewood is one of the most important energy sources for countries in the way of development. Unfortunately, the issue has been barely studied, it is not included in national statistics, is used under an informal economy, does not have clear and adequate legal instruments, and usually, is outside the investment and development policies78. In Chilean Patagonia, firewood consumption is mainly centered in Aysén Region, because in Magallanes, natural gas is mostly used. According to information provided by CONAF XI Region, it is believed that firewood consumption per house in the city of Coyhaique is between 18 to 21 m3/year, and involves 99% of houses. For cities like Coyhaique, Chacabuco and Puerto Aysén, home firewood consumption is between 296.347 m3/year and 345.738 m3/year. These figures are greater than the National Energy Commission (CNE) had estimated for year 1992, with a firewood and derivates consumption of 270.000 m3. A recent study carried out by Forest Institute (INFOR) and CNE point out that firewood consumption in cities like Coyhaique and Puerto Aysén is approximately 373.594 m3 of wood79, which is equal to 227.219 tons. In these estimations, wood consumption by industrial, residential, commercial and institutional sectors is included, with the conclusion that residential sector is the one that evidently consumes more firewood as fuel, reaching up to 95,7% of the total used80. The use of firewood does not correspond only to the use for heating (64%), but also for cooking and boiling water.

The INFOR-CNE research delivers interesting results on the causes that lead the inhabitants in the region to use firewood. The reason for its use is that firewood heats up more, there is a “firewood culture”, due to customs or habits, and it is also less expensive. Big consumers (industry, commerce and institutions) consume firewood because of its greater heating power, equipment requirements and because it is easy to obtain. The research detected that average annual consumption is 18,3 m3 in Puerto Aysén, and in Coyhaique, 9,34 m3 of industrial wastes are used as complement to the firewood; while firewood consumption for big consumers is solid 118,8 m3 per year, and industrial wastes consumption is 468 m3 per year81. Lacking in cargo capacity, these figures are intriguing.

The main specie used for firewood is lenga (Nothofagus pumilio), filling 70% of the residential sector demand and 95% of big consumers sector82. This equals to solid 207.477 m3. The following specie, in terms of consumption, is ñirre (Nothofagus antarctica), with solid 54.510 m3, coigüe (Nothofagus betuloides), with solid 13.533 m3, and other species with solid 13.485 m383.

The way citizens acquire the firewood is not in settled markets, less formally, such as with trucks and vans in the zone. 62% is acquired this way, 23% is bought from merchants, and the remaining 15% is directly acquired from producers84. Wood industrial wastes are acquired in similar percentages85. Due to this, the field of firewood is extremely informal, being evident that 97% and 75% of consumers in Coyhaique and Aysén, respectively, have never received a legal document (invoice or receipt)86. Other research carried out in the region determined that only solid 103.063 m3 come from producers under the regulation of management plans, so some 270.532 m3 would come from illegal exploitations. Producers that do not have management plans, produce 245 m3 of firewood and 1.758 m3 of forest wastes87. This research says that 92% of demand (256.550 m3) is satisfied by producers that are not under any regulations.

When doing a projection of firewood consumption in Chilean Patagonia, we must start from the hypothesis stating that the growth of population implies an increase in firewood consumption, and that consequently measures should be taken in order not to impact to badly on the native forest sustainability, whilst ensuring that Patagonia inhabitants have a resource that allow them to satisfy their needs. Developing mechanisms such as firewood certification, which implies to obtain the firewood from well-managed forests, is a solution that should be part of the energetic forests in the region. As long as the current energetic matrix in the region is kept, a negative impact for forests near the cities is expected in the future.

17 1.4. Exotic Plantations Establishment

Even though exotic forest plantations of rapid growth in Chilean Patagonia do not reach the same levels as to the North of parallel 44°, forest history in the last 30 years and short-term mentality would suggest that Patagonia is not far from this threat. A great part of established plantations has been created aiming to recover eroded lands, but there is no clarity in the projections for plantations, considering that important enterprises like Mininco would have plans to develop industrial projects in Patagonia, which could have a strong impact from the point of view of the fragmentation of ecosystems, modifying their flows and also their biodiversity.

By year 2002 in Patagonia, 33.137 hectares of exotic forest plantations were registered88,89, with pino ponderosa being the most used specie. 99% is concentrated in Aysén Region. The most important thing about figures is that annual forested area has been increasing, because in 1993, planted area was 1.706 hectares and in 2002, this area reached 2.611 hectares; that is to say, an increase of 53% in only 9 years.

1.4. Guanaco Farming and Shepherding

Farming is producing the movement of Guanaco (Lama guanicoe) populations into forests of lenga in Patagonia. The use of grasslands and meadows by sheeps in Patagonia, brings about the introduction of guanaco into the forest, generating a strong negative impact, due to shepherding, thus deteriorating the forest quality. The loss of habitat by wild species, as a result of the introduction of farming, is a problem also recognized by the authorities of Patagonia90.

2. Forest Fires, a Historic and Latent Threat

99% of forest fires in Chile are the result of human activities. In Chilean Patagonia, different authors point out forest fires as one of the biggest environmental disasters during the period between 1900 – 1950, when burns for fitting out lands went out of control and ended up with a destroyed area, calculated by many authors for 3,0 million hectares in Aysén Region91,92. After the fires, the locals incorporated farming, which through shepherding, made forest regeneration even more difficult. In addition, there was great land degradation, which is possible to state in a great part of Patagonia.

More current records of great fires are the ones occurred during 1997-1998 summer season, in Gran Guaitecas Island and Level Island, where about 18.000 hectares of native forest were lost, with an important presence of Las

Guaitecas Cypress93. During the fire in Level Island not a single fire fighting action was taken, even though the area was part of Las Guaitecas Reserve, a SNASPE unit and was supposedly protected by CONAF.

Considering the period between 1998 and 2002, total hectares burned in Patagonia was 41.447 hectares94,95 (Annex 10). The lack of capacity and resources to prevent and fight the fires in Patagonia is a situation discussed in different seminars and meetings with the government, but unfortunately, without a concrete solution in terms of an effective policy for preventing and fighting forest fires.

Forest fires represent a threat in Patagonia, as in addition to the lack of resources and capacity, there is a problem with the big distances between the fire fighting squads and the location of fires. In fact, in the previously mentioned islands, rains were an important factor to stop fire. But, what happens when there are extended dry periods like the recent summer season of 2004? The focal points of fires are still possible to prevent, specially in those places where fire is still used to fit out lands for farming (situation permitted by CONAF), the construction of new roads, and the increase of tourism activities, for example.

3. Erosion and Desertification

18 40% of the area in Chilean Patagonia is under some category of erosion (see chapter 1, point 2.4) 96. This figure does not mean that remaining 60% is free from this problem, as we have to deduct the area equal to Ices and Glaciers, and the high peaks where there is no vegetation. Two main factors have affected the erosion of lands: Fires (mainly in Aysén Region), eliminating the vegetal cover that protected the land from the rough climatic conditions in the zone; and the introduction of cattle in Magallanes Region (specially sheep, in the Patagonian Steppe zone). In fact, WWF states over-shepherding and the associated erosion, desertification, and fires, as threats for the Patagonian Steppe97. The erosion in Patagonia is setting the stage for desertification, currently considered as one of the main problems humankind is facing98, understood as “the degradation of lands in arid, semi-arid and dry sub-humid areas, resulting from the negative human impact” 99. Desertification is also stated as the result of massive introduction of sheep and cow cattle since early XIX century100. The damage over Patagonian meadows is mainly due to not only a problem of cattle overload, but also to the wrong usage and inadequate distribution of cattle in the territory101. Given the high impact of farming over vegetation, terrains that are exploited with this purpose turn rapidly into erosion focus points. Deforestation with forestry purposes, fires or fitting out terrain for farming, allow rains to drag fine materials from the ground surface, loosing a high level of fertility102. In Chilean Patagonia, sheep cattle reaches up to 649.868 heads and represents 88% of the total in the country, mainly concentrated in Magallanes Region, with 85%103. By diminishing the fertility of the land, it loses aptitudes for farming; then, the next step is to fit out new terrains with enough food for the cattle, with the following elimination of native forest. That is how there are still zones where the land capacity has not been damaged yet and food for cattle grows. However, in the future, the land will lose fertility and produce poorness, and other zones will have to be fitted out. On the other hand, between 1996 and 2003, the area given a bonus by the Program for Recovery of Degraded Lands was 39.929 hectares104. This figure corresponds to 0.004% of total hectares in Chilean Patagonia, being the recovered area extremely small. Added to this, there is no Land Conservation and Recovery Policy, and no Integral Land Law that demands its protection, recovery and promotion, avoiding that an owner destroys the resources in their terrain to a point of no return.

4. Mining in Patagonia

Even though great mining in Chile is concentrated in the Northern Zone of Chile, Patagonia is not free from extraction activities based on metallic and non-metallic mining. The following productive work can be currently found in Patagonia:

Contractual Society Minera El Toqui: It is located about 125 kms. to the north of Coyhaique. It belongs to the Canadian zinc- producing corporation Breakwater Resources Ltd105. Subterranean mining is developed according to works that exploit 1.200 tons/day, with an approximate annual production of 65.000 tons of zinc concentrates, with a zinc average grade of 49%, adding up to an annual production of about 2.000 tons of gold concentrates grading 50 grs. of gold per ton106. It is very important to state that zinc obtained in the region represents approximately 96% of national production. The influence of Minera El Toqui in the economic development of the region is very important, especially in the provinces of Aysén and Coyhaique. Their installations include a concentrating plant with capacity to process up to 1.200 tons of minerals a day. Currently, the company is working to start operating the new Zinc deposit Estatuas (located 1,5 kms. to the west of Doña Rosa mine, where current exploitation is developed) and, recently, a seam called Aserradero, located 1 kilometer to the south of Doña Rosa107. In October 2003, the company incorporated a project to the Environmental Impact Evaluation System, through a Declaration of Environmental Impact, in order to increase Confluencia Rewash Dam crowning height from 632 to 638 m.s.n.m., being approved in May 2004108, through resolution of environmental classification (R.E. N°0331).

The threat this mining exploitation represents in Chilean Patagonia refers to the problems created by rewash dams and the emission of material from these waste stocking centers, which correspond to highly contaminating material

19 that gets to the nearby rivers, specially to Mañihuales river, and which also alters the ecosystems down the watercourse of the rewash dam.

Minera C.D.E. Fachinal Ltda.: In October 1995, the subsidiary of Coeur D’ Alene, an American company which after several years of explorations initiated the exploitation of gold and silver in its bed in Laguna Verde, started production. This project is located about 20 kms. to the west of , in the road that connects this location with Puerto Guadal and Cochrane. Fachinal is a project that combines subterranean and open pit mining. Its estimated useful life is approximately 7 years to a production rate of

1.500 tons a day. Annual average production of concentrates was calculated in 60.000 oz of gold and 2.000.000 ozm of silver109. Very promising seams have been found, with high contents of gold and silver, which made the Headquarters take the decision of reinitiating its activities in Chile Chico, now under the name of Compañía Minera Cerro Bayo Ltda., and according to public deed dating October 24, 2001, which modified the company name of Compañía Minera Fachinal Ltda. Inspections undertaken have shown that the waste canal, to avoid the spilling of waters from outside the mining process, had not been constructed. In addition, the owner had asked to deposit the dam clear waters about 500 mts. away from Laguna Verde, this being authorized after the fulfillment of the corresponding emission Regulation (DS 90 of MINSEGPRES). Finally, it was stated many times that the rewash slope did not have moisturizing and that, because of the winds, great amounts of particulate material flew away110. The same way as Minera El Toqui, the threat corresponds to the liberation of material from the rewash tank, whether in the form of liquid or suspended material, which lands directly on Laguna Verde.

SECOND PART

ENAP (National Oil Company): The first exploratory drilling in Magallanes land was made in 1907. Since 1945, oil has been drilled in the Springhill Well in Tierra del Fuego111.

In 1999, the General Manager of ENAP, Mr. Alvaro García, made a public warning, saying that the oil reserves in the Region would be exhausted in 6 years112. This made the business to look for a change onto the natural gas exploitation. In the year 2004, the company Veritas is hired in order to exploit the gas reserves in Mercedes Lake, Tierra del Fuego113.

OIL SPILLS IN CHILEAN PATAGONIA: ACCIDENTS OR DISASTERS?

The Chilean Patagonia has a notorious record of accidents in oil spilling. In May 12, 2004, an oil spill occurred in the Patagonia coast, when the high-sea tug boat Seacor-Laredo collided with the French oil tanker Berge Nice. More than 350 cormorants were found dead or in critical state in only two thousand meters of coast in the Primera Angostura area, the east access to the Magellan Strait. The extension of the contaminated coast was estimated in 10 Km of the coast of Tierra del Fuego114.

Another sad accident is the Metula case, not as well known in the media as the spill of the EXXON VALDEZ oil tanker in Alaska, but with similar characteristics. The Metula ship belonged to the Oil Company Curacaosche Sheepvaart Matas, and was under contract for the ENAP. The Metula load consisted in 193.472 oil tons (near 276.399 m³ or 1.738.293 barrels) 115.

On August 1974, the Metula entered the Magellan Strait. There were two high precaution points during its crossing of the strait (Primera Angostura and Segunda Angostura). After poor manoueverinr, the ship ran aground, spilling 53.500 oil tons into the sea environment. The extension of the oil spill was over 2.560 km², reaching the coasts of the Magellan Strait. The depositions covered a coastline of 60-80 Km long, 15-60 m wide and with an average thickness of almost 10 cm 116. The recovering measures were extremely slow due to the climatic conditions in the area.

The data of the period indicates that, until September 6, 1974, there was no intention of containing the oil coming out the Metula, to apply dispersants or other chemicals to the oil in the water, or at least to remove or stabilize the oil in the beaches. Also, the government of the period did not concern for the arriving of penguins to the area, especially in the Vírgenes Cape, Argentina, where a colony of 200.000 penguins gather to mate, and stays in the area from September to March every year.

Aside the large background of environmental oil disaster occur in the Region, the threat of this type of exploitation is not solely related to the spills that may come from the tankers, but also there are those occurred in oil pipelines or polyducts, used to transport oil or other materials. These ducts have a potential risk, especially for the oceanic ecosystems. Among the environmental passives that can be found in the Magallanes Region, there are precisely the contaminated soils of the areas near the oil storage tanks.

Compañía Minera Del Pacífico (Pacific Mining Company): Extracts limestone from Guarello Island in the Madre de Dios Archipelago (Magallanes Region). The Island is exploited by open pit and produces 650.000 tons per year117. This mining also m 1 Oz. = 28,7 grams.

20 loosens a big amount of material that must be reallocated in other areas. These areas could have a high relevance, as ecosystems and also as landscapes. If the material areas stocking have not been evaluated in a proper way, it could result in damage to the established objectives by the Region al Development Strategies for the Aysén and Magallanes Regions, in other words, the protection and conservation of the Environmental Quality of the Patagonia.

Peckett: Coal mining company that started its operations in 1987 using the mobile pit mining system. It achieved the country’s largest production capability with 1.1 Billion metric tons n/year. Nowadays, the mine is property of the INGESUR enterprise, related to the Catamutún Group118.

The main coal reserves in the Magallanes Region correspond to 4 interest Regions for the coal industry in a near future. These are:

Brunswick Peninsula: Area where the present Peckett extraction works is located. Thirteen different mantles have been identified and more than 100 Billions cubic tons have been measured, but only two of these mantles are economically viable119. : It is the area with the largest coal reserves of Magallanes and the country, where many interest zones have been identified with innumerable known outcrop. The estimated reserves of the Riesco Island are 3.200 Billion tons 120. North of Skyring Inlet: there is knowledge of outcrops in the north shores of the Skyring Inlet, in front of the “Ensenada de Ponsoby” sector of Riesco Island121. During the year 2003, CORFO rented the mining concession of Riesco Island to the Inmobiliaria Agrícola Industrial y Comercial Vicente S.A. with an area covering 4.030 hectares, where reserves for more than 670 Million coal cubic tons were measured122. Rubens – Natales: In this zone there is an interest area of 340 km², located between the Rubens River and Puerto Natales. This coal has more caloric power than those located in the interest areas more to the south, and it is believed that it has similar characteristics to the coal of the Turbio River in Argentina. These reserves have been estimated in 600 Billion tons123.

CURRENT MINING CONFLICTS IN PATAGONIA

THE CASE OF PECKET MINE

It refers to the illegalities made by the coal mining works in the area near Punta Arenas, specifically the . The conflicts had been generated by the INGESUR S.A Company, which is performing works in the Pecket Mine that, on its first stage, was an open pit mining operation. In 1997, a project is presented that would change the S.E.I.A open pit work to an underground work, but in the near 1999 the COREMA of Magallanes Region find irregularities in the works, by changing back to the open pit configuration without presenting any kind of project to the S.E.I.A. In the year 2002 the company rented a portion of land of 400 hectares, located 6 km from the former work, where it started new operations that were abandoned in 2003124, when an underground layer was found that flooded the operations. The exploitation mentioned before is located in the east zone of the Otway Inlet, and in the south east of the former work. This exploitation is located in a zone that highlights for the presence of soft hills, vegetation formations for agriculture and livestock use, the presence of fertile low lands, and the Los Patos River. As for the impacts generated by the mining works, the following have had a high magnitude, being of relevance: the enormous holes in the vegetation that were left without being covered, putting in risk the life of animals and persons; the vegetal covering of the area, leaving an erosion spot; the construction of roads that did not respect the existent water courses, temporal or permanents, blocking them and affecting the supply of low lands. Also, damage and destruction has been caused to the meadows near the operations by stocking barren material; the Los Patos River has been contaminated by pumping water from the flooded operation and releasing it to the stream, which also affects the coast line, specially the coast of the Otway Inlet, nesting area for the Magellan Penguins and a popular tourism area of the Chilean Patagonia. All the mentioned impacts have strong repercussions over the native flora and fauna, being of high relevance the presence of the American ostrich, moose and wild ducks. The scale of the environmental damages done in the area are stipulated in the report of the Environmental Commission Field Visit 2003, that indicates: “The environmental damages are obvious at the first moment you enter the indicated area”, it also says that “all the disposal material, slag and others (thousands of cubic meters) are stocked in the area near the mine, conforming multiple elevations that do not comply with the most elemental environmental care principles that must follow the companies carrying out these type of activities (restoration of the vegetal layer and slope softening)”125. Finally, the company did not complied with the demands set by the Region al authorities, according to the report of the Inspection N° 127/99, made by the National Service of Geology and Mining (SERNAGEOMIN), where is said that the company must notify about any modification to the project. The company ignored this when it started the works in the new zone. Due to the lack of presentation of these last modifications, there is no Restoration, Compensation or Mitigation Plans. The prior environmental conflict has had a big covering in the Regional media, showing the concerning of the citizenry for the protection of the environmental quality in the Chilean Patagonia.

OPEN PIT SUB-BITUMINOUS COAL MINE CONFLICT

The project “Open Pit Bituminous Coal Mine Conflict”, approved by Environmental Impact Decree in February 2004, and whose proponent is the mining company Otway S.A., has generated an environmental conflict mainly due to the location of the works and the transit routes that it will use, plus the remaining doubts about the environmental responsibility of the company, being its representative the same as INGESUR. It must be indicated that, during the Environmental Impact Declaration process, observations were received from many public services: Sernageomin, First City Hall in Punta Arenas and the National Monuments Council, among others. Besides the impacts described in the case of the Pecket mine that could be present in this works too, it must be added the high flow of coal trucks (2.280 trips per month) through the areas where human populations are settled, specifically the Santa Elena Village. Seeing this, the citizen organizations met to present a protection appeal, saying that this project should have been registered as Environmental Impact Research (E.I.A), not as Environmental Impact Statement (D.I.A). The Supreme Court, annulling the approval from COREMA of the Magallanes Region to the D.I.A for the described project, favorably accepted this appeal.

21 A number of other large explorations are also being developed, seeking areas to start mineral extraction works. Among these, stands out the Patagonia Project Southern Rio Resources and those made by the Universidad de Chile Geology Department126 (See figure 8).

Figure 8 Company Exploration Placement

Patagonia Pólux Lake and Southern Rio Gold and Silver Castor Lake Resources Project

Fondef Project, U. De Chile Azul Lake – Gold and Silver Geology Cochrane Department. Fondef Project, U. De Chile El Faldeo – Polymetallic Zinc Geology Cochrane Department. Fondef Project, U. De Chile Chacabuco Polymetallic Various Geology lagoon- Cochrane Department. Granite Outcrop, Pto. Aysén- Pto. San Marino Granite Chacabuco Marbles, Spain Source: Mining Department, 1999.

Studies have been performed in the Magallanes Region, revealing the existence of zones for the potential extraction of high interest non-metallic minerals127, being among them:

¾ Clay in the Pescado River, for the construction of ceramics. ¾ Puzolana in San José de Palomares, for the fabrication of abrasives and insulating panels. ¾ Aymond Mount, extraction of basaltic rocks for slabs, paving tiles.

Considering that only the 2% of the extracted material is in fact the desired material and the rest correspond in a 50% to barren material, 44% to second washings and 4% to spoil heaps128, it can be said that mining generates a big amount of highly toxic residues. These residues are stored in dykes. Chile is not free of accidents connected to these, one of the most well known occurred in 1965, at the El Cobre dyke, where 200 people died129. Furthermore, stern safeguards must be taken in a country with a high seismic and hydro-geological risk. There are also the dust creation problems, soil contamination, water consumption and failures in the disposal system130. This is the reason why the population near the mining sites and the natural resources that can be reached by the generated impact are under a high risk. As a consequence, the set up of these types of project must be analyzed considering all the steps that would help to avoid the impact of the mining operations and the related works.

One of the elements that could characterize the mining projects in the Patagonia is the fact that they can develop mining operations in remote zones, where the access of external agents to the works is difficult. But the fact that the mining operations are located in zones away from urban areas does not mean that such activity could not generate any impact. These can affect directly or indirectly the population, the vegetal and animal species and even entire ecosystems.

5. Salmon farming in Patagonia

Chile has 4.200 km of open coast and nearly 30.000 km of protected coast, located mainly in the archipelagos and fiords of Chiloé, Aysén and Magallanes131.

The salmon farming is one of the productive areas with the largest development and growth in the last years. The annual production numbers reaches 482.392 tons132, second after Norway, generating exports for a total of US$ 1.147 million FOB133. The Patagonia exports represent a 19% (90.985 tons) and a 1% (4.960 tons) for the Aysén and Magallanes Region s, in that order. The remaining salmon production is focused in the Los Lagos Region. (See picture 4).

22 Picture 4 Source: SERNAPESCA 2002

In the Aysén Region, between 1994 and 2000, 1.758 dealerships and aquaculture authorization requests were processed, mainly aimed to the salmon and trout farming134. In the year 2003 almost 60 Environmental Impact Statements were being studied for the Magallanes Region, in the Beagle channel or the Horn Cape in the southern part of Chile135. At the same time in SERNAPESCA, another 220 dealership requests were being processed136. In the Aysén Region, the aquaculture industry represents almost the 70% of the industrial employment137.

In the Development Strategy for Aysén, the hand over of land to aquaculture, is promoted and suitable mechanisms have been developed speeding up of the request process138. Until July 2004, there were 2.000 requests being processed. In the other hand, since the Impact Evaluation System came into effect in Chile in 1997, an 83% of the declarations handed in the Aysén Region were related with the aquaculture, while the percentage in the Magallanes Region is 29%139.

Of the aquaculture dealerships handed over for the salmon farming, 20% of the dealership hectares are owned by 5 big enterprises. The development of aquaculture is seen as an activity that will continue growing strongly in Patagonia, as the access routes are improved and the distances to the processing centers decreases. It must be take in consideration the existence of incentives in the Region for the non-traditional exports, benefit that allows the refund of taxes through the devolution of the 10% or 5% of the FOB value (Law N° 18.480 in effect since 1985), plus other financial assistances as the Order in Council Nº 889 and the Southern Law140.

Impact of the Aquaculture over the coast and lakes

Chart 9 summarizes the main impacts originated by the aquaculture activity in the southern coastal zone of Chile, some of them specifically identified in the Los Lagos Region. amonio Chart 9 Impact of the Aquaculture on the coastal marine ecosystems The copper in the sediments increases notoriously in areas used for salmon farming. The deposit of organic matter is relevant when there is a presence of farming systems. The amount of ammonium increases notoriously in the Chiloé zone in comparison with the Reloncaví Depression. However, in the Reloncaví Depression an increase of phosphate is observed, related with the farming system. Some effects of little significance were detected, about the nutrients and metal concentration related with the farming system. Cadmium and mercury increases in sites with or without farming activities in the Chiloé islands, in comparison with the Reloncaví Depression. There has been little impact on the biodiversity of benthonic macro fauna, however, changes have been observed in the relative composition of some species in both the Reloncaví Depression and the coast of Chiloé. The presence of salmon farming systems generates an average mortality of one sea wolf every two months. The presence of omnivorous, diver and carrion birds increases significantly in areas with aquaculture activities. Source: Terram Foundation, 2002.

Many salmon industries have started their operations in lakes, causing a severe impact to the natural ecosystem141. The effect is different to the one found in the aquaculture over coastal zones, due to the existence of ocean currents that “minimize” the negatives effects in this sector. Chart 10 shows a list of the environmental effects associated to the aquaculture in lakes.

Chart 10 Impact of Aquaculture over continental water systems A notorious increment of the nitrogen in the water column associated with floating cages. Copper in the continental water bodies has notoriously increased due to the aquaculture activities. The large number of phytoplankton (especially diatoms) notoriously decreases in zones associated to floating cages, and the abundance of phytoplankton is higher in continental lakes. The biodiversity in the richness of the Phytoplankton species significantly decreases in zones associated to floating cages. The copper in the sediments notoriously rises in zones being used by the aquaculture, being this effect bigger in the continental lakes than in the ones located in Chiloé Island. Also the benthonic macro fauna showed a notorious decreasing in its biodiversity, this being dramatic in the insular Chiloé lakes. The presence of omnivorous, diver and carrion birds increases significantly in areas with aquaculture activities. Source: Terram Foundation. 2002.

23 Use of Antibiotics and Antifouling Paints

On aquaculture a large amount of chemical agents are used, for disease and algae control. Its use is not free of problems, thus creating a number of impacts for the environmental and the human health. The figure 11 details the agents used in aquaculture and its major risks:

Chart 11 Chemical Agents used in Aquaculture and their Risks Chemical Agent Risk Antibiotics Resistant Bacteria Selection, residues in food Antiparasites Toxic for sea animals and irritants Fertilizers Eutrofication Anesthetics Carcinogenic Ovulation Hormones Minimal Oxidants Explosives, irritants and toxic Algae and Weed Killers Toxic for all living forms in the water, irritant, carcinogenic. Source: Terram Foundation. 2003.

In Chile, the problem of antibiotic resistance is a serious public health problem, as a result of the indiscriminate use of antibiotics in human medicine as well as in veterinary and agriculture142.

The aquaculture and the stockbreeding are activities that use a large amount of antibiotics. In general, the use of these products is indiscriminate and without a clear scientific or economic reasoning143. This lack of logic entails strong impacts to the human and animal health, and over the environment. Some of the antibiotics used during the salmon farming are not biodegradable and they remain in the water for a long time, years in some instances.

It should also be noted that important alterations are produced in the ecological relationship between humans, animals, bacteria and the environment, as a result of the environment contamination with residual antibiotics, which retain their antibiotic capabilities.

The specific impact over other bacteria belongs to genetic phenomenon of mutation and transmission of genetic material between bacteria, observing certain resistance in the bacterial flora in ponds, cages and water; aside of the normal flora of some fishes used in aquaculture and in different bacterial pathogen, which causes disease in fishes144.

The jump of the antibiotics to the environment occurs through food, into which antibiotics are incorporated. The food is not completely consumed, meaning that some antibiotics are released to the aquatic environment. These residues help to the propagation of resistant bacteria, affecting the native flora and fauna145.

Recent studies show the presence of bacteria with a high pathogenic potential that also have multiple resistance to antibiotics. They also shows that, inside the aquatic environments surrounding the aquaculture zones in Chile, there is a strong relation between the releasing of antibiotics and the appearance and permanence of these bacteria146.

Unlike other countries like Norway, Canada and the United States, there are no regulations in Chile over the use of antibiotic and antibacterial products in the aquaculture147. In Chile the amount of antibiotics being used has grown together with the growth of this industry in the country, reaching nearly 500 tons of antibiotics in the year 2000148. The increase in the use of antibiotics in the aquaculture contradicts with the global tendency in the restriction over the use of antibiotics in human health. The use of antibiotics in the Chilean aquaculture is probably of the preventive type, more than therapeutic; “Preventive” from the point of view of diseases generated by the inefficient hygiene and technology used in the Chilean salmon farming. In comparison with the Norway salmon farming, in Chile there are used 75 times more antibiotics. The concentration of bacteria per cubic centimeter of seawater in the pelagic euphotic zone is of 1 x 106/ml (1 million / ml), and of 1 x 108 (100 millions) per gram of ocean sediment149. If the release of tons of antibiotics is considered, the impacts will prompt not only the selection of bacteria resistant to antibiotics, but also drastic changes in the quality and quantity of the types and number of the bacterial plankton in lakes and sea. These changes can generate other types of phyto and zooplankton.

Toxic substances are also discharged into the environment through salmon farming. The elements used for this activity are the antifouling paints that allow underwater structures, such as nets, to avoid the attachment of moss and algae. “The antifouling toxic substances enter the organism if they are inhaled, eaten or if it enters in contact with the skin and eyes. The cupric oxide has bioaccumulative heavy-metal characteristics in living organisms. The benzene and its by-products as the xylene have carcinogenic action, mainly producing leukemia and lymphoma, hepatic damage (hepatotoxic action) and generate marrow aplasia affecting the immunological system”150.

The malaquita green is a fungicide forbidden worldwide due to its carcinogenic effect. This product was found in Holland on June 25, 2003, being ordered the confiscation of 180 tons of Chilean salmon in Rotterdam151. The malaquita green has also being found in the United Kingdom, in November 2002, starting a world environmental alert due to the presence of this dangerous agent in a Chilean cargo152.

The impacts of the use of antibiotics over the environment can alter the ecological balance in the population of microorganisms, causing a decrease in bacterial diversity and an accelerated proliferation of some groups of bacteria, algae and protozoan. There has been detected a decrease in the biodiversity of the surrounding zones of the salmon farming facilities, a decrease that is manifested in quality and quantitative modifications of the plankton species. These impacts are of relevance because the bacteria fulfill an

24 important role in the nutrient environment cycles that, if modified, can impact all the living beings of that environment. But the changes not only can be produced at a macro level, there is also a modification in the macroscopic flora and fauna (fishes, birds and marine mammals). These modifications arise mainly from the modifications in the aquatic environments, as a result of the eutrofication generated by the release of organic wastes (food and depositions), phenomenon that can result in the apparition of bacteria, as the cyanobacteria153. In places where the concentration of cages is high, an increase of the nitrogen in the water can be detected, which can produce a bloom of marine dinoflagellates, some of which can have detrimental impacts154.

Residues produced by the salmon farming

It is estimated that the residues released by the aquamarine Chilean industry reaches a value equal to the one generated by a human population of more than 3 millions habitants155; in other words, 2.25 times more than the population of the X, XI and XII Regions, where the aquaculture is held nowadays.

Salmon farming also produces effects in the water column. This is due to the fact that almost 70% to 80% of the nitrogen released by fish remains dissolved on it. The presence of nutrients generates a eutrofication process, producing an increment in the photosynthesis of the aquatic environment, as a result of bigger food availability for other organisms. This leads to seasonal decreases in the oxygen levels and the biodiversity of the area156. The threats to the biodiversity by the eutrofication generated by the salmon farms in the internal channels is presented as an impact that falls, in the end, on the cetacean population in the zone157.

Studies made in the year 2002 revealed that, even if it is difficult to determinate an important increase of the dissolved nutrients in the water column, experiments performed with algae in the proximity of the salmon farming cages showed that the nitrogen quantities increased notoriously, concluding that the salmon facilities are indeed a nutrients source for the aquatic environment. The same study showed an important copper increment, detecting average values of 110 µg/g in zones with salmon farming activity158. The concentrations found below the cages, suggest the development of ecological effects over the ecosystems developing in the areas nearby. These phenomena could decrease because, if organic material is present, the copper joints with it and it became less bio-available. The high concentrations of copper are produced mainly by the use of “antifouling paints”.

About the effects in the benthonic biodiversity it has been found a decrease of many marine invertebrate species, as well as an important increment of the capitella invertebrate159.

Other impacts generated by aquaculture in the southern area of Chile are the increase of carrion, omnivorous and diver birds in the coastal and aquaculture farming areas. This increase can have important environmental impacts by increasing the population of these types of birds in the areas.

Finally, there is information about the death of marine mammals, especially sea wolfs. Studies reveals that one sea wolf dies by asphyxia every two months in the areas near the farming facilities, and considering the large number of these facilities, we can assume that the estimation of the dead walruses is of thousand of individuals.

Escape of salmon

The last known case of a salmon escape in the Patagonia is dated on July 8, 2004, in the Acantilado Harbor, Aysén Region, with the liberation of more than a million salmon. This is not an isolated accident, but a common one160, generating a strong impact over the native species in the zone, like smelts, sea bass and sardines, as salmon is an exotic predator species. Studies performed in Canada, reveals that the escape of salmon occurs for the following reasons: Climatic problems (48%), industrial accidents (32%), third party actions (16%) and by predators (5%) 161.

Until July 2002, there were 693 authorized feeding centers in Chile, over an extension of 7.866 hectares162, potentially then, there is a large number of salmon that could escape.

About the quantification of the salmon escapes in Chile, studies change in function of the information used to make the estimations. Regardless of this, there is no discussion about the large amount of predator exotic species that are now impacting on Chilean ecosystems. According to research, the aquaculture industry escapes reach 1.5% of the total biomass of farmed individual fish163. This means that during the period of1985-2001, there were 574.256 salmon that escaped per year. Another research study estimated that during the period 1993-1996, an average of 1.688.989 individuals escaped every year from the farming centers164. Finally, other numbers shows that nearly 5% of the total farmed salmons escape every year; the total number of escaped individuals during the 1985-2001 period would be 23.816.516 (5 Kg each)165. It is believed that in the Aysén Region the salmon population will be strongly increased as a result of the escapes and the condition of the aquatic ecosystems in the Region. For example, escaped salmons can easily seen in the Simpson River166

There have not been many investigations in Chile into the effect of salmon releases, unlike the countries in the Northern Hemisphere167. However, the effect of the farming salmon over the wild salmons has been studied, producing among other problems hybridization, disease transmission, competition and depredation over native species.

Impact of the Farming Facilities

There are problems related with the salmon farming facilities, mainly because when the human activity increases in virgin areas, the noise level increases as well as the impact over the near coastal zones, as said by the current President of the Coyhaique Tourism Chamber, Mr. Julio Meier Trujillo: “The Magdalena Island is in serious risk, no one who has seen it can believe that it is a National Park. What is CONAF doing with the administration of the park? There are burned and cut down trees, old

25 nets, metallic cages and abandoned torn nets, inhabited camps and sawmills, melted plastic in the beaches, empty food plastic bags floating all around, corpses of wolves and birds shot down in defense of the cages, fishes with diseases that escaped from the cages, etc.”168 The large amount of floating cages for salmon farming installed in the Patagonia is seriously affecting the channels landscape. “My job at Tourism and Sport Fishing allows me to travel over most of the Region carrying national and foreign tourists, making me a sad witness of the fast and overwhelming destruction of the landscape and the touristic value caused by the salmon industry”, said Mr. Meier169. Also, the President of the Coyhaique Tourism Chamber, Mr. Patricio Silva Armanet, has expressed anxiety about the impact produced by the salmon companies in the Region, in this case specifically in the surroundings of National Parks, impacts like the cages installed in the Queulat National Park and the Southern Road170.

Summarizing, the salmon farming is an activity in Patagonia that aims to become the economical growth engine of the region. But it should be questioned due to its effect on the environment. It is precisely the fact of being such a profitable activity that the authorities and the salmon farming companies must look for mechanisms and tools that allow making the salmon farming a sustainable activity which does not lead to the contamination and destruction of surrounding ecosystems. The intensive salmon farming exploits and damages valuable zones, impeding the development of other productive activities that give work to another sector of the population. The harmonizing of the production activities in Patagonia must be discussed by civil society, the private sector and the authorities, in order to avoid further detrimental impacts on land and sea.

6. The threat of introduced species

Chilean Patagonia, as well as the rest of the country, is not free of exotic species that threaten the native species and generates serious impacts over the environment. Nowadays, it is believed that the exotic species are one of the most dangerous threats to the survival of thousands of other species. Commonly, the exotic species creates what is called a competitive exclusion; they compete with native species for the same resources and, in some cases, the native species ends extinct, generating strong chain reactions that greatly change the ecosystems, through hybridization between different species or by the creation of a genetic elimination. It is also relevant that the invasive species of new environments in general do not have natural or pathogen predators that could control their populations171.

The main land species introduced to the Chilean Patagonia are: the sheep (Ovis ammon), the muskrat (Ondatra sbeticus), the hare (Lepus capensis), the rabbit (Oryctolagus cuniculus), the beaver (Castor canadensis) and the mink (Mustela vison).

Below are described the origin and effect of these three introduced species:

The beaver was introduced first to Argentina. Already in 1963 it could be found in the draining rivers of Fagnano Lake, and in 1993 its distribution reached a range of 20.00 km², mainly in Tierra del Fuego. In Chile the first record of beavers goes to 1964, in the west zone of Fagnano Lake. The distribution of the beaver includes forest and steppe zones, where it constructs dams using bushes. The Beaver has been sight in Tierra del Fuego, , Lomas Harvor and Hoste Island (Dumas Peninsula). It is estimated that in the Chilean portion of Tierra del Fuego there are nearly 41.000 Beavers and almost 20.000 on Navarine Island, severely damaging more than 5.400 hectares of forest172, transformed into open meadows due to the utilization of Lenga barrens and branches for the construction of its dykes and beaver dams173.

The mink was introduced between 1934 and 1936 for hunting purposes, near Punta Arenas and in zones near Coyhaique. After the failure in the breeding attempts, the individuals were released. Nowadays its distribution is unknown in South America, but in Chile it has been found from Bío Bío Region to Tierra del Fuego. It is held as the responsible for the decreasing of the huillín or river otter population (Lontra provocax) in rivers and the coipo in Argentina; and it is also considered as capable of killing marine birds, mammals, fishes, as well as poultry and newborn lambs174.

The muskrat was introduced during the 40´s175 in the Argentine part of Tierra del Fuego, and nowadays it can be found scattered through all Tierra del Fuego, Ambarino Island and the Hoste Island. This species is also considered harmful for vegetation because, with the construction of its tunnels, it generates irrigation and dyke problems, producing flooding and loss of habitat176.

Unfortunately the threat of this species over native species has not been studied in depth. Because of this, the quantification of its real impacts is unknown. But there is consensus in the idea that, when an exotic species has established in an area, its eradication can be almost impossible177.

Concerning the Flora introduced to the Patagonia, at the weed level it has been detected that in the Aysén and Magallanes Regions there are between 63 to 100 kinds of these vegetal species, respectively178; producing impacts mainly in the most fragile and less protected ecosystem of Patagonia: the Steppe. This is added to the threat over this species due to the erosion created by the intensive livestock. Many of the species were introduced in the Patagonia with a productive aim and, after the failure of the projects, the individuals were released into areas inhabited by native species or ecosystems unprepared for the arrival of introduced species. Nowadays, we can conclude that this has generated a change in the ecosystem and landscapes of the Chilean Patagonia that could harm important activities such as Ecotourism.

7. The impact of Fishing and Hotel Industry

The Fishing Industry: When the extraction of marine resources surpasses its natural reposition, there is overexploitation of resources. By extracting the majority of the individuals during their reproductive period, there is no descendents who could preserve the species in that area. Thus, to allow a specie to preserve over time, it must be balanced the number of deaths (natural or by fishing) with the number of births of new individuals; if the deaths surpass the births, the specie decreases or might disappear179.

Although the decrease of marine resources in the Aysén Region is bigger than in Magallanes, the fishing industry of Magallanes has a major relevance, especially the one associated to the processing of extracted marine resources. The catch of all the sectors

26 associated to marine resources in the Aysén Region reached 121.067 tons during 2002, while in the Magallanes Region the numbers reached 43.561 tons180. Concerning exports, the most important species are salmon, trout, sea urchin, hake, spider crab and king crab. In the Magallanes Region, until 2002, there are 41 fish processing plants, against 13 in the Aysén Region181.

In the Aysén Region the main species not farmed and fished are the tail hake, with 10.495 tons caught during the year 2002. The southern hake had a catch of some 6.282 tons. In the Magallanes Region the main exploited resource was the sea urchin, with 25.210 tons caught in 2002, followed by the king crab and the spider crab, with 4.630 and 2.451 tons, respectively. The hake is also exploited on this region182.

The sea urchins (Loxechinus albus) can be found from the Peruvian coast to the Horn Cape. Nowadays there is a free access system and there have been detected a significant decreasing of numbers caught in the Magallanes Region, concluding that the species is under a serious threat. It should be said that the country does not has reliable information about the stocks of the resource; therefore, to obtain measures to manage it is a difficult task.

The southern hake (Merluccius australis) can be found in Chile from Chiloé to the Horn Cape. The southern hake fishing has lead to the decrease in a 24% of the adult’s sizes (over 8 years old) and a 19% of the young group (less than 2 years old). Catches have dropped from 70 thousand tons in 1988 to 30 thousand tons, being made from 40% to a 48% by the artesian sector and the rest is caught by the industrial sector. Evaluations made to the southern hake stock shows a big drop, from almost 450 thousand tons in 1989 to only 100 thousand tons in the year 2000. The southern hake stock is overexploited, as the result of a high mortality due to the fishing of young individuals, especially by the artesian fishing on internal waters. It must be considered the impact generated by the fishing in external waters of the southern Chile during the 80´s and early 90´s, meaning that the stock will not recover and will continue decreasing. This is the reason why closed seasons are set during the reproductive periods since 1991183.

The tail hake (Macroronus magellanicus), is still heavily fished, and as such it is necessary to improve the existent regulations over the use of this resource184. The hake is fished using trawling nets, which not only captures this resource but also creates physical and biological damage in the oceanic bed, affecting many other benthonic species essentials to the balance of the marine ecosystems. The spider crab (Lithodes antartica) and the king crab (Paralomis granulosa) are crustaceans for which no study has been made to determine their stock. There is a study contemplated for the year 2004 by the IFOPn, to determinate the condition of the resources; however it is believed that it is at the edge of overexploitation, which is why there are closed seasons for its capture. Despite the fact that these resources have temporal closed seasons, the presumption of its overexploitation is based in the seizure of illegal captures, such as on August 4, 2004, where 360 kg of spider crab under legal size were seized in the City of Porvenir185. Regarding the king crab, its capture started in the 70´s, in the east zone of the Magellan Strait, later moving to the southern part of the Magallanes Region, from the Beagle Channel to Horn Cape186.

The Patagonian tooth fish (Dissostichus eleginoides) is industrially exploited in the Magallanes Region and it is managed by a system of bidding quotas determined by the Fishing Sub department prior evaluation of the stocks. It is the most exploited demersalo species in the Region187, at artesian and industrial level. It suffers from heavy illegal exploitation. The biggest catch occurred in 1992 with nearly 30 thousand tons, a number that has dropped to under 10 thousand tons during the year 2001. The biomass of this resource drops from 230 thousand tons in 1991 to 150 thousand in the year 2000, again showing that this resource is overexploited188.

As well as problems associated with over fishing, there is also the problem of waste generation. In terms of waste generation, in early 2004 in the Aysén Region, the CODEFF (National Committee for the Protection of Flora and Fauna - Comité Nacional Pro Defensa de las Fauna y Flora) reported an illegal rubbish dump used by the fishing industry of Puerto Aysén and Puerto Chacabuco. The rubbish dump is in the road between Puerto Aysén and Puerto Chacabuco, 150 meters away of the road189. it is not the first rubbish dump found in the Region. In May, 2004, the (Aysén) Chile Fishing Zone Manager, Emilio Rodríguez, said in an interview “I can see a terrible future for the industrial wastes. I believe there will be a terrible problem in Aysén”190. In short, the problem of industrial wastes from the fishing and salmon companies continues without solution. It is a topic of big concern if we consider that the Regional Commission of the environment (COREMA) is evaluating 110 binding projects, 90% belonging to this productive sector. The population of Aysén has suffered a decade of failed attempts trying to give a solution to the problem, with projects rejected by the health authorities, also the use of illegal rubbish dumps and sanitary indictments, which has generated an absolute mistrust about the real interest of the industry to give a solution, while they defend themselves saying that their goal is to generate jobs and not garbage191.

Hotel Industry: Another activity that is growing bigger is the Hotel Industry, which in order to take full advantage of the landscapes wealth of the Patagonia, searches for places with high nature levels and environmental quality, ensuring the tourists that they will truly enjoy the elements they are looking for in the Patagonia. This has lead to the construction of tourism accommodations, even hotels inside National Parks, a phenomenon that, if not well managed, can lead to the destruction of the elements on which its construction is based. If these ecosystems are destroyed, the tourism activity becomes a threat, and that is the reason why the promotion of sustainable tourism must be ensured, using effective mechanisms and creating the necessary controls.

8. The roads that divide the forests

In Chile, the construction of tracks or roads over or near valuable forest ecosystems has always been a topic of strong debate between civil society organizations and the government. Perhaps the problem is not the construction of the road, because it is clear that many people need to improve their connectivity and life quality. However, when these works are designed without consideration of the regional or even the national criterion, as the environment conservation or there is just no respect for the valid environmental n IFOP: Instituto de Fomento Pesquero (Fishing Promotion Institute) o Demersal: Water near the seabed.

27 legislation, they become in a big threat to the biodiversity and its ecosystems. For example, it is said that the forest resources of the Aysén Region have not been exploited due to the lack of roads that would allow reaching these reserves192. Due to its lower forest accessibility and the fact that it also has more forests than the northern , it is concluded that the protection of its forests must be a high priority element at the moment of creating and implementing the road policies in the Patagonia193.

Greenpeace is concerned about the construction of some stretches in the Chilean Patagonia, where projects would affect valuable forest ecosystems, and where, in places, some are drawn over protected areas. That is the case of the Río Bravo- Ventisquero Jorge Montt works, where the military work corps is currently deployed. According to the information we were able to recollect, this road was not under the S.E.I.A since the beginning; the same as the project for the works and construction of an aerodrome in the Laguna San Rafael National Park. Another stretch is the one being constructed in the Aysén Region, reaching Exploradores Harbor, following the limits of the park mentioned before. The Environmental Impact Evaluation System Regulations points up that any project must be entered to the system such as “airports; bus, trucks and train stations; railroads; gas stations; speedways and public roads that could affect protected areas”. There is also the discussion if only the works inside a protected area can affect it or also projects near the protected area affects it. The Regulations says that there must be entered to the system all those projects that “could affect elements or parts of the environment that are the reason why this (these) area(s) is (are) protected”194. Another work identified is the so-called Mayer Access that will be an alternative for the inhabitants of Villa O’Higgins, but there is also the discussion about this road being helpful for the wood exploitation195.

Under construction is the Puerto Natales - Fiordo Staines stretch in the Magallanes Region which, in order to reach the fiord according the original project, has to enter the Bernardo O’Higgins National Park. Finally, it is pointed up the Estancia Vicuña - Yendegaia connection in Tierra de Fuego, where the Yendegaia Foundation has presented an alternative course with less environmental impact in the Santuario de la Naturaleza, lands of its property, of which there is still no definitive resolution from the Regional government196.

9. Hydroelectric Mega Projects

Facing the crisis caused by the Argentine Gas situation, many solutions have been suggested. One of them was suggested by the Enersis President, Mr. Pablo Yrarrázabal who, in June 22, 2004, stated that “We need the right signals to be already thinking in the hydroelectric centers which can be built between the Pascua River, Baker, in the south of Chile, where those huge water reserves are located”197. The construction of big dams in this zone would create major impacts on biodiversity, especially if it is considered that the involved area is an important zone for the conservation of the huemul, a species in danger of extinction. ENDESA already has the water rights to generate hydroelectricity in the region, because it monopolizes the 95.91% of the rights over the constituted unused water for no consumption198. In this way, it is clearly evidenced the threat of the hydroelectric mega centrals over the Aysén Region, taking advantage of its water resources and the high hydroelectric potential of its rivers. The town councilors of the Cochrane, Tortel and Villa O’Higgins communes says that, if the construction of a hydroelectric central is carried out in the zone, it would be “the end of the ecotourism and the range of biosphere reserve that this zone of the planet has”199. The beginning of these projects would mean an investment of US$3.000 millions for the generation of 2.650 megawatts.

It must be highlighted that this type of project has the support of local congressmen, such as the Member of Parliament Sr. Pablo Galilea. It also has detractors, such as the M.P Mr. Leopoldo Sánchez, who said that such a work would harm an important tourism development zone, and would even “flood the City of Cochrane and the Chacabuco Valley”200. This is the reason why it is necessary to perform the right studies to avoid the impact to a zone with agricultural lands (rare in the Region) and also to avoid the flooding of Chacabuco Valley201.

Below are shown the main negative impacts of the big dams202:

¾ The loss of forests and natural habitats, entire species populations and the damage to basins upstream due to the flooding of the reservoir zone. ¾ The loss of the aquatic biodiversity by the fisheries up and downstream and the loss of the services provided by the flooding plains downstream, by the wetlands and the ecosystems in the shores and near estuaries. ¾ Accumulative impacts in the water quality, natural flooding and the composition of the species when several dams are built in the same river.

THE UNSUSTAINABLE ALUMYSA MEGA PROJECT

The Alumysa project from the Canadian multinational Noranda Inc. is considered one of the biggest threats to the heart of the Patagonia. The project, with an investment of US$ 2.750 millions, attempted to construct an aluminum refinery plant in the Aysén Region, three hydroelectric central, six dams, one port, one pier, new roads and electric transmission lines.

The project was under Environmental Impact Evaluation since September 2001, and had to hand its 2° Addendum in November 2003, in response to all the doubts that the public services and civil society organizations had against the E.I.A. The project was strongly supported by the Economy Minister, Mr. Jorge Rodriguez Grossi who, in order to increase the foreign investment, was willing to destroy and contaminate the heart of the Patagonia. However, Noranda withdraw its project from the evaluation system on August 19, 2003, after the President Ricardo Lagos said that the Chacabuco Harbor was not the “best place” to set up the aluminum plant. This left the possibility to a new reallocation that would depend on the establishment of regulations for the territorial order and coast zoning. Nowadays, the Alumysa project remains as a “ghost” but, according to the words of the President of Noranda, Mr. Derek Panel, during the last shareholders meeting in Canada (April 2004), Noranda does not want to give up the possibility of carry it out. Probably, the executives of Noranda are waiting for a new government that could open a possibility to this unsustainable initiative; or on a rise in the global aluminum market. Possibly they are waiting the opening of a

28 slot inside the micro zoning of the coast in order to re-enter the project into the Environmental Impact Evaluation System.

Why keep the Alumysa project out of Chile?

Because the studies made by public services, citizen organizations and prestigious organizations such as the Medicine College, the Aysén Tourism Chamber and other Chilean production sectors, says that the project would cause severe environmental, social and economical impacts in the Patagonia. In any place of Chile, the project would create severe negative impacts to thee environment by the generation of 660.000 tons of wastes and toxic emissions per year, and 980.000 tons of Co2, over a period of 50 years; the flooding of almost 10.000 hectares of native forest; generating severe social impacts over the Patagonia; and Noranda Inc. has a terrible environment background with at least 87 environment violations in Canada and fines for more than US$1.2 millions.

What is Greenpeace doing?

It is showing the negative impacts of the Alumysa Project over the Patagonia and the terrible environmental background of Noranda Inc. over the world; Is Reporting any attempt of setting the aluminum plant in Chile by Noranda; Is making contact with relevant people related with the Alumysa problem; Is expressing opposition through acts of non-violent protests; Is working in conjunction with other NGO opposing the project; Is developing bonds with country communities inside the influence area of Alumysa; Has acquired a hectare inside the influence area of the Río Blanco Hydroelectric Central, to stand against a possible and near finalization of the project.

10. Climatic change and its effect over Patagonia

Facing the questions about whether the average temperature on earth is rising, scientists from all over the world have answered that it is, in fact, happening and very quickly. The detected changes are:

¾ The increase of the average annual surface temperature in 0.6 ± 2°C, since the last part of the 19th century. ¾ The increase of the annual rains in medium and high latitudes of the north hemisphere. ¾ A probable increase in the cloud layer on medium and high altitudes of the North Hemisphere. ¾ A decrease in the extension of the snow and ice layers over earth. ¾ Changes in the oceanic level, the atmospheric and oceanic circulation patterns, climatic variability and over the extreme climatic periods203.

The most remarkable agents to which these changes could be blamed are the increasing in the atmospheric concentrations of greenhouse effect gases (GEG) and aerosols (microscopic particles or drops suspended in the air) and the changes in the solar activity, both being able to change the radiation balance on earth and therefore the climate. About the greenhouse gases, the most important are: carbon dioxide, methane, nitrogen monoxide, hydrofluorocarbons-23 and perfluoromethane. Of these perhaps the most important GEG is carbon dioxide, gas mainly caused by the combustion of hydrocarbons. The actual carbon dioxide concentration has not been exceeded in the last 420.00 years and probably over the last 20 millions years. Three quarters of the dioxide carbon emissions made by humans during the last 20 years is caused by fossil fuels, the rest is caused mainly by changes in the use of land, specially deforestation204, and it is estimated that these emissions will increase if nations as the United States do not sign the Kyoto Protocol and compromises to reduce its gases emissions.

During January 2004, Greenpeace documented the retreat of the glaciers in the Chilean Patagonia. “During the last 7 years 42 cubic kilometers had been lost per year, an equivalent of 17 millions Olympic pools. During this scientific expedition, the impact of the climatic change over the Patagonia glaciers was documented by photos, and compared with the photos of these glaciers taken in 1928. From 1995 until 2000, the ice melting speed has doubled, which equals to an increase in the oceanic level of 0.1 mm per year, increasing the risk of flooding in many coastal zones of the world.”205

In studies made in Lenga, an increase in the temperatures was detected starting from the first half of the last century206. Also the scientists have highlighted the quick retreat of the glaciers in the Patagonia, saying that these thaws would be the responsible for a rise of 6% in the global ocean levels.

11. Ozone Layer Reduction

The ozone layer, located in the stratosphere at an altitude of about 30 km, acts as a powerful filter that only allows the passage of a small portion of the ultraviolet radiation generated by the sun, called UVB. If its intensity and the exposition period are high, this radiation can cause erythemas, conjunctivitis, damage to the immunological system of humans, limitation of the growth of plants and damage to the phytoplankton, with all the related consequences to the normal development of the oceanic fauna209. It is through the ozone-oxygen cycle that the dangerous ultraviolet radiation is filtered in the stratosphere.

The severe damage to the ozone layer is presented nowadays as one of the most serious problems faced by humankind. The change in the ozone levels is not caused only by anthropic factors but also due to natural process and phenomena such as seasonal change, winds and long-term solar variations210. But the balance regulated by these natural processes has been affected by the activities of humankind, this unbalance being evidenced since the 1960s. The production of chemical compounds with elements as the chlorine

29 and fluorine, chlorofluorocarbon and CFCs by humankind has caused additional ozone destruction mechanisms. The CFCs are highly stable and long life molecules, and the ultraviolet radiation is one of the few forces capable of destroy them, releasing chlorine atoms, main responsible for the destruction of ozone molecules.

The decreasing in the stratospheric ozone means that more ozone is being destroyed than produced. In the Arctic and Antarctic regions, where a part of the Chilean Patagonia is located, it has been detected mechanisms that destroy ozone in a faster way. During winter, when the lowest temperatures take place and when the Polar Stratospheric Clouds are formed, the largest ozone destruction is produced; process helped by the mentioned phenomena and which results is seen during spring in the south hemisphere as the “Ozone Layer Antarctic Hole”211.

In 1987 the Montreal Protocol was signed, on which the countries compromised to limit the CFCs production, protocol reinforced by the Earth Summit in 1992. In 1996 an attempt to eradicate completely CFC production was made. As a result, the CFC concentrations are slowly decreasing over the world.

The increase in UVB radiation, generated by the damage in the ozone layer has been detected as far as the City of (23º S.L) 212. In Southern Patagonia the decrease in the ozone layer can reach a 50% in the southern spring during many days213. Studies have confirmed that the diminishing level of the ozone layer in the Patagonia has been increasing over the years (see picture 5). The radiation effects are negatives over human life and also over other biological systems214.

Picture 5: Month average of the ozone column measured in Punta Arenas using the Brewer Spectrophotometer for the 1992-2000 period. Source: Cassasa, Gino.

PROMOTION POLICY IN CHILEAN PATAGONIA

The Promotion policy in Chilean Patagonia clearly benefits the development of industries and investment that, at expenses of the natural resources, are part of a short term economic model. Arguments such as the extreme isolation and distance with the rest of the country also have been used to support the list of special tools used to give an incentive to the investments briefly described below:

a. CORFO215: For the Patagonia (Aysén and Magallanes Regions)

-Financial Assistance for Pre investment Studies - Southern (Southern-1): Supports the sponsor of pre investment studies made by companies interested in developing projects in the Southern Zone of Chile. -Payments to the Investment Producer - Southern (Southern-2): Encourages those who stimulate and achieve the installation of companies in the Southern Zone of Chile. -Financial assistance to make easy the sponsorship of Investments - Southern (Southern-3): Gives easier access to financial credit sources for businessman who do not have the warranty amount demanded by the financial institutions and who want to develop investment projects in the Southern Zone of Chile. -Financial assistance to the Credit Insurance Premiums - Southern (Southern 4): Decreases the cost of the contracted insurance in order to ensure the credit payment given to businessman for the development of investment projects in the Southern Zone of Chile. -Financial assistance to the Labor force Hired - Southern (Southern 5): To reduce costs over the hiring of local workers in the Southern Zone of Chile, thus stimulating the set up of companies in the site, the absorption of labor force and its qualification. -Incentive for the purchase of Industrial Land - Southern (Southern 6): Reduces the installation cost for private companies developing projects on industrial areas of the Southern Zone of Chile.

b. Investment Bonuses (DFL Nº15): It is a contribution from the treasury department, managed by CORFO, which allows recovering the 20% of the investment or reinvestments made in capital goods (equipment and infrastructure), which increases the productivity, quality and efficiency of the business for the Patagonia Regions216.

c. Ministry of Economy DL Nº889: Labor force bonuses paid to the employers through the Treasurer Service217.

d. Southern Law (Nº19.606): In force until December 31, 2008, it set a tax credit for the investments made in the Patagonia (Aysén

30