Canadian Copper Mine Threatens Ecuadorian Biological Hotspot


By Rick Searle - Posted on 28 January 2006

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Since the 1990s, the cloud forests of Intag in the northwestern corner of Ecuador have attracted attention from Japanese and Canadian mining interests. Under the verdant mantle of the jungle lie rich reserves of minerals. But getting at these valuable resources comes at a very high social and ecological cost, lying as they do within parts of two of the world’s 34 biological hotspots.

The mining concessions of Junin - located in the Toisan Range about 150 km from Quito - first came to the attention of a subsidiary of the Japanese giant, Mitsubishi Corporation. From 1993 to 1997 the company attempted to win the “social license” from the local communities to commence large-scale extraction; however, their own preliminary environmental assessment carried out in 1996 only fuelled the growing opposition to the proposed development. The assessment concluded that the mining operation would result in the displacement of four communities, massive deforestation, contamination of rivers with toxic metals and harm to the region’s endangered mammal and bird species.

Frustrated with the company’s perceived unwillingness to listen to and respect their concerns, 200 local people converged on the mining camp and set fire to it, after carefully inventorying supplies and equipment and storing them for safe return to the company shortly thereafter. Not long afterwards, Mitsubishi pulled out.

A collective sigh of relief followed, but not for long. In 2004 and 2005, Ascendant Copper Corporation - a Vancouver-based company with it’s parent registered in the Bahamas - acquired the mining concessions of Junin and immediately brought forth plans to develop a large open-pit mine along with a possible smelter and a hydro-electric dam. Once again, the communities found themselves on the defense.

In the spring of 2005, Carlos Zorrilla the spokesperson for Defensa y Conservacion Ecologica de Intag (DECOIN) along with representatives from Friends of the Earth and MiningWatch Canada filed a formal complaint with Canada’s Department of International Trade against Ascendant, on behalf of the communities.

The complaint alleged that the company had breached the Guidelines for Multinational Enterprises as developed by the Organisation for Economic Cooperation and Development (OECD). These guidelines set forth principles and standards for corporate social responsibility globally and Canada is a signator to and is obliged to promote. The complaint stated that Ascendant had not disclosed critical information to the public nor to shareholders about the intense opposition to their proposed mine. At the time, Ascendant was seeking to raise capital through the Toronto Stock Exchange.

The complaint also sought to have the Canadian government investigate whether the company had disclosed reliable exploration data, engaged in improper political activities and violated Ecuador’s Constitution and national mining law.

While the complaintents waited for a response, Ascendant went on with it’s public offering and by November had raised close to $11 million and was preparing to release yet more shares.

Meanwhile, back in the mountains of Junin, the situation went from bad to worse. On Dec. 10, 2005, about a hundred residents from 20 villages stormed Ascendant’s “model farm” and set fire to it. The rage had been sparked by company representatives testing the blocade by villagers around the mining concession. The company quite expectedly public claimed that employees had been injured and equipment had been stolen. Community members deny this. They also reiterated that the company would never gain sufficient local support for their development and that it should withdraw from the area.

What was Ascendant’s response? They hired two heavy weights in the corporate public relations world: one from Ecuador, the other from British Columbia for the sole purpose of getting the word out that the company intended “to perform an exploration program at the Junin Project to the highest international environmental standards; to create employment in the area; and to assist the local communities with obtaining potable water, medical care and supplies, secondary schooling and recreation facilities.” This, according to Ascendant’s President, Gary Davis.

Three days into the new year, the company announced it’s Environmental Impact Assessment would be submitted to the government and the local communities by middle of the month for review and comment. A period of time not to last more than 30 days.

On Jan 16th, Friends of the Earth and DECOIN conceded defeat with their formal complaint against Ascendant. Not a single formal response, written or verbal, ever came from the Department of International Trade during the entire ten months since it was filed.

“Apparently the Canadian government isn’t too concerned with resolving this issue,” said Carlos Zorrilla, spokesperson for DECOIN. “As a result, we’ve lost an opportunity to address the growing unrest surrounding this project and the alleged irregularities and illegalities in the complaint.”

Karyn Keenan, the Mining Campaigner for Friends of the Earth also had some sharp words for the Canadian government on the issue. “Both civil society and the Parliamentary Standing Committee on Foreign Affairs and International Trade have urged the Canadian government to regulate Canadian mining companies operating overseas,” she said. “Instead, the government promotes voluntary measures like the unenforceable OCED Guidelines. It’s now clear that they don’t take even these minimal measures seriously.”

While they have suffered a setback, their spirit and determination remains unbroken, as they have all vowed to continue the struggle to stop the development.

For more detailed background information, recent updates on the issue, information on how to support the communities or to write letters to the company, check out the following links:

Defensa y Conservacion Ecologica de Intag: www.decoin.org/
Friends of the Earth Canada: www.foecanada.org/
MiningWatch Canada: www.miningwatch.ca/
Ascendant Copper Corporation: www.ascendantcopper.com

It’s great anytime natural energy sources are being used as a source of power and anytime something can be done to save the environment is good. I’ve just gotten double glazed windows installed to keep from having to run the AC as often as i did to cool my home.

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