Analysis of Mining in Indigenous Territories in Colombia
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DESECRATED LAND 2 Impact of megaprojects on Indigenous Territories in Colombia MINING Fact Sheet Analysis of mining in indigenous territories in Colombia. MINING SECTOR – WORLD Mining is in a full growth cycle following a 2010 in which the mining sector closed the decade with the highest rates and volumes of growth of all the world’s sectors of economic activity. In 2010, the financial results for the Top 40 (the 40 largest mining companies) were dizzying: Revenues increased by 32%, breaking the $400 billion (thousand million) barrier for the first time. Net profits rose by 156%, reaching $110 billion Operating cash flows increased by 59%, leaving over $100 billion in cash at the end of the year. Total assets approached $1 trillion. The demand for minerals continues to rise insatiably – driven in part by the so-called ‘emerging economies’ – but supply is increasingly limited and mining operations are becoming more complex and are being carried in increasingly remote and unknown locations. (based on PwC 2010-2011) The great majority of those locations which PwC describes as „remote and unknown‟ are indigenous territories (in Colombia in particular and in Latin America in general). MINING SECTOR - COLOMBIA Colombia has not escaped this global mining fever. Following the end of Uribe Vélez’s term of government, during which the process of granting mining licences exploded (literally), particularly for applications for new concessions, Santos’ new government has proclaimed mining to be one of the 5 ‘motors’ of the Colombian economy. The Ministry of Mines and Energy is keen to stress that Colombia is a mining country and states that ‘Colombia is sitting on coal reserves’ (Ministry of Mines, 2011). A large number of indigenous peoples live on top of this coal, gold and the other minerals. Although indigenous have periodically won battles relating to mining – such as Constitutional Court Judgment T-129/11 and the declaration that the reform of the Mining Code was unconstitutional due to the lack of prior consultation with indigenous communities – they are faced with an assault on their territories on such a scale that it has been rightly described as „the new Conquest‟ („The new Conquest: mining on indigenous territories‟ ('La nueva conquista: minera en territorios indígenas') CECOIN) [a reference to a new Conquest comparable to the Spanish invasion in 1492). MINING FOR EXPORT The structure of the Colombian mining industry is, in general terms, that of an enclave extractive sector which is export-orientated. The main mining companies operating in Colombia form part of the Top 40, and include some from the Top 10 – BHP Billiton, Vale, Rio Tinto, Xstrata, Anglo 1 DESECRATED LAND 2 Impact of megaprojects on Indigenous Territories in Colombia MINING Fact Sheet American, Barrick Gold – and focus their activities on the exploration and mining of coal, gold and nickel. The Colombian state admits that, at the moment, it does not have the capacity to monitor and account for all mining activity, including that of the large companies. Corruption; the squandering, syphoning off and illegal receipt of royalties; false declaration and recording of mining production; laundering of drugs money; the financing of illegal armed groups and other irregularities have become commonplace in Colombia (and widely covered by the Colombian press). Mining revenues bring large benefits to a few and very few to the majority. The signing of the Free Trade Treaties (FTAs) with the United States, Canada and Europe will increase still further mineral exports to these areas. Indigenous peoples are left with the grave impacts of the mining industry while the benefits are enjoyed in distant countries…as in the case of the WAYUU territory which suffers all the impacts of one of the biggest open-cast coal mines in the world, the benefits of which are enjoyed by one of the biggest importers of Colombian coal: the EU. MINING IN INDIGENOUS TERRITORIES – COLOMBIA MINING LICENCES (2010) – What there is at the moment… 4,839,149 has is the area covered by the 8,928 mining licences in force in 2010. There are 117 resguardos* affected in 2010 by the 233 mining licenses covering areas totally or partly within resguardos, a total of 267,623 has [*of the 641 on official maps]. There are 26 colonial resguardos affected in 2010 by 86 mining licenses covering areas totally or partly within resguardos and there are 56 indigenous communities outside resguardos* (ICOR) which are covered by 40 of the mining licenses [*of the 421 currently officially recorded]. + the area of informal mining [not quantified but on a large scale]. MINING APPLICATIONS (2010) – What is to come… If they were all approved, the mining applications would result in a six-fold increase in the area affected by mining. The blocks subject to the applications run to over 54,600. These applications cover over 26 Mha of Colombia‟s surface area. 3,977 of these blocks are located wholly or partly within 347 resguardos, which means that 5.4 Mhas within resguardos are subject to mining applications. There were 79 colonial resguardos affected in 2010 by 672 mining applications and 206 ICOR, by 123 applications. PROMISING AREAS FOR THE EXPLORATION OF PRECIOUS AND BASIC METALS – What may come... 16.4 Mha have been identified by INGEOMINAS as promising for the exploration of precious and basic metals (gold, silver, beryl, copper, nickel, molybdenum, iron, chrome…). The promising area for metals in the subsoil of resguardos is as high as 8 Mha within 152 resguardos. 22 colonial resguardos and 43 ICOR would also be affected by promising areas. There are occurrences, prospects or mines for metals and precious minerals in 11 resguardos. 2 DESECRATED LAND 2 Impact of megaprojects on Indigenous Territories in Colombia MINING Fact Sheet _____________________________________________________________________ Iconoclasistas for Desecrated Land 2 Warning signs A mining megaproject consists of various stages. We have to be very alert! 1. Plan 2. Exploration and setting 3. Mining and processing 4. The mine is abandoned. The mining companies begin up Commercial phase: Chemical products, toxic to negotiate with the local Major drilling is carried out mountains are broken up and ponds and workings are authorities and, if necessary, and they begin to build the the rock is separated from abandoned without being with the armed groups. The infrastructure. the minerals with toxic sealed up. There is no pressure begins on the chemicals. cleaning or environmental population to abandon the rehabilitation. They do NOT lands which the megaproject leave the ecosystem as they will occupy. found it. Duration Between 1 and 3 years Decades until the seam is Some chemicals will remain exhausted for generations The effects of mining and oil activity are not only felt once industrial exploration and exploitation have begun. The impact on indigenous peoples often begins long before. The mere fact of declaring an area to be promising or with mining potential leads to delays or even complete paralysis for processes for granting collective title or formal recognition to resguardos. It is very difficult to gain legal title to ancestral lands and those of customary use when their subsoil is believed to contain some form of mineral deposit. Furthermore, the promising areas attract speculators, illegal armed groups and generally agents responsible for laundering the assets from drug trafficking. The coal-mining area of Cesar is just one example of how the process of land theft works in practice, land which ends up in the hands of the mining companies: Paramilitary terror with subsequent mining operations: Massacre of 18 people in the hamlet of Mechoacán and Finca El Prado • Mass forced displacement of the inhabitants • Dispossession of lands at the hands of „frontmen‟ of the AUC through the irregular granting of title deeds by town halls linked to the paramilitaries and by corrupt INCODER officials • Subsequent sale of the stolen land to Prodeco (part of Glencore) and Drummond • They are now coal mines for export. “All this is done for land, which is rich in coal, this generates a lot of money, it‟s because of this that there‟s all this displacement. An area of land in the conflict isn‟t worth anything, where there‟ve been killings, displaced people, you could buy a hectare for 150,000 pesos”. 3 DESECRATED LAND 2 Impact of megaprojects on Indigenous Territories in Colombia MINING Fact Sheet Testimony of Alias ‘Samario’, one of the commanders of the AUC’s Northern Bloc, given during the paramilitary ‘demobilisation’ process (November 2009). SUMMARY OF THE MAIN MINING ACTIVITIES AFFECTING INDIGENOUS PEOPLES AND THEIR TERRITORIES: COAL In Colombia, coal-mining using gigantic open-cast mines began in 1983 with the opening of El Cerrejón mine in WAYUU territory. Exploration there had begun in 1977. Large-scale coal-mining has now been affecting indigenous peoples and their territories for 3 decades. Colombia has the largest coal reserves in the whole of Latin America. It is estimated that it has potential reserves of 16,992 million tonnes (Mt) of which 7,063 Mt are measured reserves (that is, their size has been confirmed by extensive investigation). At current rates of extraction, with these measured reserves, coal-mining would be guaranteed in Colombia for 100-120 years (Ministry of Mines and Energy, UPME 2010). For indigenous peoples and their territories, this means that the impacts of open-cast coal- mining over the past 30 years will continue for the next 100-120. 150 years of open-cast mining will leave a gigantic crater! In 2009, Colombia was the world’s 10th biggest coal producer with 73 Mt extracted, and the world’s 4th biggest exporter with 69 Mt (World Coal Association 2011, Ministry of Mines and Energy 2011), which means that 94.5% of the coal mined in Colombia was exported.