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Cajamarca, PeruThe sheer scale of the Yanacocha gold mine in Cajamarca, Peru, is staggering. It is the largest gold mine in Latin America, and the second largest in the world, covering 22,000 acres. The Minera Yanacocha company runs the mine, and is owned jointly by US and Peruvian mining companies and the World Bank.
The abundant porous low-grade ore found in this area lends itself well to the cyanide heap leach method, and Yanacocha has several huge leach pads, taking over entire mountainsides for this low-cost, environmentally risky system of gold extraction. To take advantage of spiking world gold prices, Minera Yanacocha is aggressively trying to expand the mine. Critics of the mine say the government granted the concession to Minera Yanacocha after accepting bribes from Newmont, and without consulting local communities, which are now suffering. It operates in an environmentally sensitive area full of farms that rely on water coming from the mountains in the mine area.
Local organizations critical of the mine claim that since it was established in 1992 its revenues have climbed while farm production has dropped, water has become contaminated, and the influx of job seekers to the area has increased crime. With farmers under more and more pressure to sell their land to the mine, this case continues to be an example of how lack of consultation and poor oversight of gold mining can lead to undesirable outcomes for local people and the environment, and infringe on people's rights to a sustainable livelihood and determine the course of economic development in their communities. When Newmont proposed expanding Yanacocha to Cerro Quilish, a mountain four miles from the mine that holds 3.7 million ounces of gold, community members were concerned because Cerro Quilish sits atop the watershed supplying an entire valley of farmers and the city of Cajamarca. Cerro Quilish has been spiritually important to the area's citizens since the time of the Incas, and in 2000, the city of Cajamarca declared Cerro Quilish a protected area. Last year, residents of Cajamarca stepped up protests against the expansion of Yanacocha to Cerro Quilish. Over 10,000 people staged demonstrations and blocked access to the mine for 2 weeks in September 2004. Protestors faced tear gas, police violence, and long nights, but refused to back down. Realizing the depth of local opposition to the mine's expansion, Newmont announced in November 2004 that it would halt its exploration activities on Cerro Quilish. In a statement printed in Peruvian newspapers, Newmont admitted that it had not always listened to the valid claims and concerns expressed by the Cajamarca community in the past. More recently, other communities have also protested the mine. On August 2, 2005, about 100 residents in the town of Combayo took over land near Newmont's Carachugo pit, blocking Yanacocha vehicles from highway access. Newmont temporarily shut down operations at Carachugo due to the conflict, during which one protester was killed in unknown circumstances. 1The company negotiated with the government to monitor air quality and conduct a study on ensuring a steady water supply to the area in exchange for permission to resume and expand the operation. Communities living near the mine have reason to protest its operation. In June 2000, one of Minera Yanacocha's contractors spilled 150 kilograms (335 pounds) of mercury from the mine along a 43-kilometer stretch of road through the towns of Choropampa, Magdalena and San Juan. More than 1,000 people maintain they were affected by the spill and many continue to report health effects. According to Juana Martinez, president of the Choropampa Defense Front -- representing victims of the spill who are fighting for just compensation and health care -- Yanacocha offered some compensation to the townspeople in exchange for signing documents clearing the mine from responsibility. But Juana and others refused to do so, and a group of 1,100 villagers filed a lawsuit against Newmont in the U.S. seeking compensation for damages caused by the spill. After failed attempts to reach a settlement, the case is now set to move forward in U.S. courts.
For More InformationRead an article by Father Marco Arana, a diocesan priest and community activist in Cajamarca: "Denver's Newmont Trying to Duck It's Responsibilities in Peru," Rocky Mountain News, 5 June 2004. International Finance Corporation: Compliance Advisor/ Ombudsman |
Community VoicesCuster National Forest, MT"Rancher Not Informed about Mineral Leasing" is Jeanie Alderson's story about what it means when the federal government owns the minerals below private land - mainly, that surface owners have little or no input into the leasing process or decisions that will greatly affect their lives and livelihoods. |
In 2002 the mine produced 2.29 million ounces of gold at a very low cost of $123 per ounce. Profits from this mine contributed 15 percent of the $2.7 billion total revenue earned by its majority owner, Newmont Mining Corporation of Denver, the largest gold mining company in the world whose stock price doubled in 2003. On its web site, Newmont refers to Yanacocha as its "crown jewel."
Minera Yanacocha has proposed expansion to Quilish mountain, in the watershed supplying an entire valley of farmers and the city of Cajamarca, which has declared Quilish a "no-go" zone for mining. Local people are also concerned about water pollution, and the after effects of 330 pounds of mercury spilled along a road through several communities near the mine in 2000. The mishap affected close to a thousand people who are demanding health assistance and compensation from the mine.