Charges were filed for the first time against a transnational mining company in Latin America, at the Alumbrera Mines (Xstrata, Goldcorp and Yamana) in Catamarca and Tucumán in Argentina. This article is about the history and events which have led up to this important event, and what we can do to support Latin Americans fighting against big mining operations.
First Ever in Latin America: Mining Corporation Charged with “Crimes Against the Environment” in Catamarca, Argentina.
16 June, 2008
Ten days ago, the Federal Chambers of Tucumán in Argentina brought criminal charges of environmental contamination against Julián Rooney, Vice-President of Bajo La Alumbrera, Argentina’s largest mining operation located in Catamarca and Tucumán. Rooney is free, but his possessions are impounded, and the company will appeal the ruling to the Court of Appeals, and possibly to the Supreme Court. This is the first ruling in all of Latin America against a mining company for crimes against the environment.
Mina Alumbrera is the largest, oldest and most profitable open-pit metals mine in Argentina. Located in the northwest province of Catamarca, Alumbrera moves 120 million metric tons of earth annually to produce an average of 160,000 tons of copper, 600,000 ounces of gold and other metals in form of a mineral concentrate, or slurry. Alumbrera is joint-owned by three of the largest metals mining transnationals: Xstrata, Goldcorp and Yamana Gold.
The ruling has sent shock waves through the mining industry in Argentina and throughout the world, leading the Argentine mining association CAEM to issue a statement claiming that the ruling will paralyze an economic sector that “generates jobs and high-paying salaries.” Not only is Alumbrera on trial for contamination, but also under scrutiny for tax evasion, corruption and contraband. And called for questioning as presumed accomplices in the contamination are local and national government officials including Secretary of Mining Jorge Mayoral.
The ruling is a product of a complaint filed ten years ago by citizens groups and biologist Juan González, Secretary of Environment for the Province of Tucumán. They discovered that Alumbrera was dumping millions of liters of toxic liquid wastes into DP2, a canal used by animals and farmers alongside the Alumbrera pumping and filtration station in Tucumán. González ordered a series of tests, and the Provincial Health System (SIPROSA) found lead, cadmium, copper, selenium, mercury, cyanide and arsenic above legal health limits. A claim was filed in 1998 against Alumbrera for violating the laws in Argentina’s National Constitution which regulate toxic waste emissions.
Alumbrera’s Chain of Operations: Contamination and Desertification
Like every modern mine, at the Alumbrera open-pit in Catamarca, mountains are exploded and ore is removed, crushed and leached with chemicals to produce a thick, metal-rich slurry. The slurry is pumped 140 miles through a pipeline over a 8,000 foot mountain pass to the province of Tucumán, where the slurry is “dewatered” and liquids simply dumped in canal DP2 in Tucumán, headwaters of the extensive Sali-Dulce river basin. The dried “mineral” is then carried by train 450 miles to Puerto Alumbrera on the Paraná river near Rosario, Argentina, and shipped to overseas plants for the extraction and foundry of gold, copper, silver and other minerals within.
Alumbrera’s extensive “chain” of operations involves multiple river basins and five provinces. In the twelve years since Alumbrera began operations, the operation has become notorious for the enormous plume of contamination released at the many points along this chain of operations. More ominous still is the large-scale regional desertification attributed to Alumbrera’s operations: The project consumes between 60 and 100 million liters of water a day pumped from depleted water tables, to return contaminated directly to river systems and aquifers.
Over the years, as contamination increased, community pressures grew. However, the case languished in the corrupt and inefficient Argentine justice system. Alumbrera continued to produce Environmental Impact Reports every two years, many times even reporting levels above legal limits. The impunity that Alumbrera enjoyed was compounded by economic hardships facing residents of Catamarca and Tucumán, as Big Mining companies such as Barrick Gold, Xstrata, Goldcorp and dozens of others bought off politicians and carried out well-moneyed social insertion PR campaigns while creating a corrupt political system based on patronage to mining interests, while small groups of environmentalists and dedicated officials were marginalized for their opposition.
However, two years ago, spurred to action by complaints from citizens, new Tucumán District Attorney Antonio Gustavo Goméz resurrected the case. In a way it came late, years after a series of fish die-offs in 2001-2004 left the Sali-Dulce river system entirely dead. In recent months, environmentalists pushing the courts to take action were threatened as “terrorists” for their advocacy. But they succeeded: On May 30, Tribunal judges finally voted 3-1 to press criminal charges against Alumbrera.
But at the mine, production never stops. After twelve years of continuous operations, Alumbrera’s pit is enormous and declining ore grade means the company is literally "running the mine into the earth" by increasing volume and tonnage mined, in order to maintain mine "productivity.” Alumbrera runs two shifts of workers, operating day and night, every day of every year Increased production means more energy and water use, and generates more waste and contamination. The mine and tailings had been constructed on a complex system of fault lines, and the unlined tailings reservoir permits heavy metals infiltration into water tables. The mineral pipeline is aging, and has ruptured repeatedly throughout its 140 miles.
What will happen?
Alumbrera’s ecological damages are by and large “irremediable” and will require works into perpetuity. But when the mine closes in five years, Alumbrera (Xstrata, Goldcorp and Yamana) is not obligated to clean up or pay for restoration costs: Due to agreements signed by the government and Alumbrera in 1996 responsibility for cleanup will fall upon local authorities. The Argentine state is clearly unable to handle any form of environmental oversight, maintenance and restoration on the scale of Alumbrera.
Catamarca is a beautiful desert province of northwest Argentina, with mountain ranges, deserts and verdant oasis valleys. Runoff from snow-capped peaks and underground aquifers once supplied small-farmers throughout the region with pure mineral waters for their crops of fruit, nuts and vegetables. These lands are now dried up and waters undrinkable, contaminated with heavy metals. Family farms have dried up, leaving poverty and creating a culture of exclusion and dependency. The town of Andalgalà in Catamarca is emblematic of the social and ecological conflicts brought on by Big Mining: Miners live in gated communities, while common citizens cannot drink the tap water and schools and health systems languish, and the corrupt mayor just spent $40,000 of municipal to pay Nobel laurate Joseph Stiglitz to speak at a conference in support of Big Mining.
Resistance:
The problem won’t end with Alumbrera: This is just the first of a series of mega-mining projects under exploration and construction in the region. Residents are bitterly fighting Yamana’s Agua Rica mine, to be located some 40 km from Alumbrera will be three times larger and draw from the same depleted water tables. It is one of dozens of projects slated for Catamarca’s new mining “Sacrifice Zone”.
Throughout Catamarca, citizens are taking to the streets to halt these mega-mining operations: Residents of Aconquija blockaded roads to protest ruptures of the mineral pipeline; in western Catamarca, Tinogasta residents blockaded Alumbrera’s which carry explosives and chemicals from Chile and return laden with contraband mineral, and Alumbrera’s “blue train” has been repeatedly blockaded by Santiagueños. Argentines are learning that perhaps the key to stopping contamination and plunder is by applying pressure all along Alumbrera’s chain of operations. Citizens of other countries, especially USA, Canada and Switzerland can, and should support the people of Argentina in their struggle.
For more information, here are some key contacts:
www.noalamina.org
www.minesandcommunities.org (English)
http://asambleasocioambientalcatamarca.blogspot.com/
http://aconquija.blogspot.com/
http://belenresiste.blogspot.com/
http://www.olca.cl/oca/index.htm
http://www.tinogasta-catamarca.blogspot.com/
http://www.orosucio.madryn.com/
By David Modersbach
National University of Rosario, Argentina
dmoders@yahoo.com
16 June, 2008
Ten days ago, the Federal Chambers of Tucumán in Argentina brought criminal charges of environmental contamination against Julián Rooney, Vice-President of Bajo La Alumbrera, Argentina’s largest mining operation located in Catamarca and Tucumán. Rooney is free, but his possessions are impounded, and the company will appeal the ruling to the Court of Appeals, and possibly to the Supreme Court. This is the first ruling in all of Latin America against a mining company for crimes against the environment.
Mina Alumbrera is the largest, oldest and most profitable open-pit metals mine in Argentina. Located in the northwest province of Catamarca, Alumbrera moves 120 million metric tons of earth annually to produce an average of 160,000 tons of copper, 600,000 ounces of gold and other metals in form of a mineral concentrate, or slurry. Alumbrera is joint-owned by three of the largest metals mining transnationals: Xstrata, Goldcorp and Yamana Gold.
The ruling has sent shock waves through the mining industry in Argentina and throughout the world, leading the Argentine mining association CAEM to issue a statement claiming that the ruling will paralyze an economic sector that “generates jobs and high-paying salaries.” Not only is Alumbrera on trial for contamination, but also under scrutiny for tax evasion, corruption and contraband. And called for questioning as presumed accomplices in the contamination are local and national government officials including Secretary of Mining Jorge Mayoral.
The ruling is a product of a complaint filed ten years ago by citizens groups and biologist Juan González, Secretary of Environment for the Province of Tucumán. They discovered that Alumbrera was dumping millions of liters of toxic liquid wastes into DP2, a canal used by animals and farmers alongside the Alumbrera pumping and filtration station in Tucumán. González ordered a series of tests, and the Provincial Health System (SIPROSA) found lead, cadmium, copper, selenium, mercury, cyanide and arsenic above legal health limits. A claim was filed in 1998 against Alumbrera for violating the laws in Argentina’s National Constitution which regulate toxic waste emissions.
Alumbrera’s Chain of Operations: Contamination and Desertification
Like every modern mine, at the Alumbrera open-pit in Catamarca, mountains are exploded and ore is removed, crushed and leached with chemicals to produce a thick, metal-rich slurry. The slurry is pumped 140 miles through a pipeline over a 8,000 foot mountain pass to the province of Tucumán, where the slurry is “dewatered” and liquids simply dumped in canal DP2 in Tucumán, headwaters of the extensive Sali-Dulce river basin. The dried “mineral” is then carried by train 450 miles to Puerto Alumbrera on the Paraná river near Rosario, Argentina, and shipped to overseas plants for the extraction and foundry of gold, copper, silver and other minerals within.
Alumbrera’s extensive “chain” of operations involves multiple river basins and five provinces. In the twelve years since Alumbrera began operations, the operation has become notorious for the enormous plume of contamination released at the many points along this chain of operations. More ominous still is the large-scale regional desertification attributed to Alumbrera’s operations: The project consumes between 60 and 100 million liters of water a day pumped from depleted water tables, to return contaminated directly to river systems and aquifers.
Over the years, as contamination increased, community pressures grew. However, the case languished in the corrupt and inefficient Argentine justice system. Alumbrera continued to produce Environmental Impact Reports every two years, many times even reporting levels above legal limits. The impunity that Alumbrera enjoyed was compounded by economic hardships facing residents of Catamarca and Tucumán, as Big Mining companies such as Barrick Gold, Xstrata, Goldcorp and dozens of others bought off politicians and carried out well-moneyed social insertion PR campaigns while creating a corrupt political system based on patronage to mining interests, while small groups of environmentalists and dedicated officials were marginalized for their opposition.
However, two years ago, spurred to action by complaints from citizens, new Tucumán District Attorney Antonio Gustavo Goméz resurrected the case. In a way it came late, years after a series of fish die-offs in 2001-2004 left the Sali-Dulce river system entirely dead. In recent months, environmentalists pushing the courts to take action were threatened as “terrorists” for their advocacy. But they succeeded: On May 30, Tribunal judges finally voted 3-1 to press criminal charges against Alumbrera.
But at the mine, production never stops. After twelve years of continuous operations, Alumbrera’s pit is enormous and declining ore grade means the company is literally "running the mine into the earth" by increasing volume and tonnage mined, in order to maintain mine "productivity.” Alumbrera runs two shifts of workers, operating day and night, every day of every year Increased production means more energy and water use, and generates more waste and contamination. The mine and tailings had been constructed on a complex system of fault lines, and the unlined tailings reservoir permits heavy metals infiltration into water tables. The mineral pipeline is aging, and has ruptured repeatedly throughout its 140 miles.
What will happen?
Alumbrera’s ecological damages are by and large “irremediable” and will require works into perpetuity. But when the mine closes in five years, Alumbrera (Xstrata, Goldcorp and Yamana) is not obligated to clean up or pay for restoration costs: Due to agreements signed by the government and Alumbrera in 1996 responsibility for cleanup will fall upon local authorities. The Argentine state is clearly unable to handle any form of environmental oversight, maintenance and restoration on the scale of Alumbrera.
Catamarca is a beautiful desert province of northwest Argentina, with mountain ranges, deserts and verdant oasis valleys. Runoff from snow-capped peaks and underground aquifers once supplied small-farmers throughout the region with pure mineral waters for their crops of fruit, nuts and vegetables. These lands are now dried up and waters undrinkable, contaminated with heavy metals. Family farms have dried up, leaving poverty and creating a culture of exclusion and dependency. The town of Andalgalà in Catamarca is emblematic of the social and ecological conflicts brought on by Big Mining: Miners live in gated communities, while common citizens cannot drink the tap water and schools and health systems languish, and the corrupt mayor just spent $40,000 of municipal to pay Nobel laurate Joseph Stiglitz to speak at a conference in support of Big Mining.
Resistance:
The problem won’t end with Alumbrera: This is just the first of a series of mega-mining projects under exploration and construction in the region. Residents are bitterly fighting Yamana’s Agua Rica mine, to be located some 40 km from Alumbrera will be three times larger and draw from the same depleted water tables. It is one of dozens of projects slated for Catamarca’s new mining “Sacrifice Zone”.
Throughout Catamarca, citizens are taking to the streets to halt these mega-mining operations: Residents of Aconquija blockaded roads to protest ruptures of the mineral pipeline; in western Catamarca, Tinogasta residents blockaded Alumbrera’s which carry explosives and chemicals from Chile and return laden with contraband mineral, and Alumbrera’s “blue train” has been repeatedly blockaded by Santiagueños. Argentines are learning that perhaps the key to stopping contamination and plunder is by applying pressure all along Alumbrera’s chain of operations. Citizens of other countries, especially USA, Canada and Switzerland can, and should support the people of Argentina in their struggle.
For more information, here are some key contacts:
www.noalamina.org
www.minesandcommunities.org (English)
http://asambleasocioambientalcatamarca.blogspot.com/ http://aconquija.blogspot.com/ http://belenresiste.blogspot.com/ http://www.olca.cl/oca/index.htm http://www.tinogasta-catamarca.blogspot.com/ http://www.orosucio.madryn.com/ By David Modersbach
National University of Rosario, Argentina
dmoders@yahoo.com 
e-mail:
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Minera Alumbrera response to article "Criminal charges against Alumbrera mine"
28.07.2008 11:12
Minera Alumbrera hereby states that:
1. Minera Alumbrera's filter plant discharges water into DP2 canal after it has been treated in a water treatment plant. The discharges are monitored regularly and meet regulatory requirements.
Minera Alumbrera holds a permit from the Provincial Health System (SIPROSA) to discharge water into the DP2 canal that is renewed every six months, based on performance. The article incorrectly states that SIPROSA found chemicals in DP2 canal that exceed legal health limits. In fact, SIPROSA declares that irregularities have not been detected and has periodically renewed the permit granted to the Company.
The provincial authorities regularly monitor the discharges into the DP2 canal and verify that Minera Alumbrera complies with provincial regulatory requirements.
Water discharged into the DP2 canal from Minera Alumbrera's filter plant in Cruz del Norte, Tucumán, is first treated in a state-of-the-art water treatment plant and not "simply dumped" in DP2 canal as the article states.
The filter plant has its own laboratory where raw and process water and liquid run-offs are tested for chemicals. In 2005, this was the first laboratory in north-western Argentina to attain the IRAM 301 Standard (ISO 17025) accreditation granted by the Argentine Accreditation Organisation. It also monitors the quality of water discharges, together with the enforcement authorities, on a daily, monthly and bi-annual basis to ensure strict compliance with applicable regulations.
The report also incorrectly states that the DP2 canal is for use by farmers and animals. DP2 canal is certified by provincial authorities as a storm-water runoff canal.
2. Minera Alumbrera believes the charges of alleged contamination of DP2 canal are without legal merit.
When the complaint of alleged contamination of DP2 canal was filed in 1998, Minera Alumbrera took water samples in the presence of a public notary that were tested at the National University of Tucumán’s laboratory. The results showed that the samples were within the applicable levels as recorded in the case file.
The samples taken on the same day by the Border Police and the District Attorney Antonio Gómez showed high concentrations of copper. However, Minera Alumbrera contends that these results are without legal merit as the Company was not able to control the dispatch of such samples from Tucumán to Buenos Aires or to witness the opening of the sample containers. This issue has been raised before the judicial authorities and the Company has requested that the expert’s report be dismissed.
3. Minera Alumbrera is committed to maintaining surface and underground water quality and to using this natural resource in a sustainable way.
Minera Alumbrera is committed to maintaining surface and underground water quality downstream of the operation area. No water is returned to river systems and aquifers from the mining and processing operation in Catamarca province. A state-of-the-art retro-pumping system returns water from the tailings dam to be reused in the mining and processing operations in a closed system. Minera Alumbrera constantly monitors surface and underground water quality and to optimize water quality maintenance, new monitoring wells are annually opened in places suggested by supplementary studies.
Bajo de la Alumbrera mine extracts raw water from an underground reservoir located in Campo del Arenal. It uses just 48% of the water volume authorised by the provincial government and is focused on optimising the use of recycled water. Prior to the commencement of operations, baseline studies were conducted and included in the Environmental Impact Assessment (EIA) to ensure that operations did not impact the availability of water for neighbouring communities. Compliance with the designed model and current regulations is monitored by the provincial government on a fortnightly, monthly and quarterly basis according to the relevant variable. Minera Alumbrera's operations have not impacted the availability of water to neighbouring communities as claimed in the article.
As part of its water-efficiency measures, Minera Alumbrera has a policy of minimising the use of raw water and maximising the use of recycled water. In 2007, 71% of the water used in Minera Alumbrera's operations was recycled water and 29% raw water.
Far from impacting the availability of water to neighbouring communities, as part of its Corporate Social Involvement programme Minera Alumbrera has formed alliances with the Catamarca Irrigation Department, the municipal authorities and the Irrigators’ Association to support works to build irrigation channels and expand cultivable areas in Andalgalá and Santa María departments.
4. Minera Alumbrera is committed to meeting the highest environmental standards and to ensuring that its operations do not contaminate the environment.
Minera Alumbrera's environmental performance, including water use, management and discharges, is monitored by Tucumán, Catamarca and Federal government authorities.
Before commencing operations, Minera Alumbrera presented its Environmental Impact Assessment (EIA) to the Catamarca and Tucumán authorities for approval, which was duly approved. Updates to the EIA are presented to the Argentine authorities every two years. All submitted EIAs have been approved and subsequently monitored by the authorities. It should be noted that mining is the only activity regulated by a specific environmental protection law (Law 24.585) in Argentina.
It is inaccurate to state that the Minera Alumbrera operation has "become notorious for the enormous plume of contamination released at the many points along this chain of operations." In its 10 years of operation, Minera Alumbrera has received no legal fines or penalties for environmental incompliance.
Minera Alumbrera publicly reports on its environmental performance in its annual sustainability reports. These reports provide details of all environmental incidents and any remedial actions taken. No major environmental incident has ever occurred at Minera Alumbrera.
Minera Alumbrera has developed a mine closure plan which includes a full assessment of all significant social and environmental risks and controls, together with financial provisioning for closure and rehabilitation.
The closure plan is reviewed annually, including a review of assumptions, cost estimates and potential commercial opportunities and in view of any changes in environmental, social or legal circumstances or technological developments.
The article incorrectly suggests that the restoration costs and work will fall upon local authorities when the mine closes.
5. Minera Alumbrera is committed to the highest standards of personal and professional ethical behaviour. We fully reject groundless allegations of "tax evasion, corruption and contraband."
Minera Alumbrera is not under "scrutiny for tax evasion, corruption and contraband," as the article claims.
All products imported and exported by Minera Alumbrera are supervised by the tax authorities (AFIP) and the National Customs. Minera Alumbrera does not have any complaints filed for irregularities such as contraband, corruption or tax evasion in any jurisdiction of Argentina.
Xstrata Plc, the operator and 50% owner of Minera Alumbrera, carries out internal and external audits in accordance with the Group Fraud Policy to provide assurance that no employees or contractors of any Xstrata operation engages in improper or illegal behaviour. Xstrata Plc requires all its operations to adhere to four basic business principles: We work ethically: We work responsibly: We work openly: and We work together and with others.
Xstrata Plc and Minera Alumbrera are signatories of the United Nation's Global Compact, an initiative that fosters corporate social responsibility among private companies. The Global Compact promotes ten basic principles covering human rights, labour, environmental responsibility and anti-corruption. These principles are an integral part of Minera Alumbrera's business strategy and performance against these principles is reported publicly on an annual basis to the United Nations.
Claire Divver, GM Corporate Affairs, Xstrata on behalf of Minera Alumbrera
e-mail:
info@xstrata.com
Minera Alumbrera response to article "Criminal charges against Alumbrera mine"
28.07.2008 11:16
Minera Alumbrera hereby states that:
1. Minera Alumbrera's filter plant discharges water into DP2 canal after it has been treated in a water treatment plant. The discharges are monitored regularly and meet regulatory requirements.
Minera Alumbrera holds a permit from the Provincial Health System (SIPROSA) to discharge water into the DP2 canal that is renewed every six months, based on performance. The article incorrectly states that SIPROSA found chemicals in DP2 canal that exceed legal health limits. In fact, SIPROSA declares that irregularities have not been detected and has periodically renewed the permit granted to the Company.
The provincial authorities regularly monitor the discharges into the DP2 canal and verify that Minera Alumbrera complies with provincial regulatory requirements.
Water discharged into the DP2 canal from Minera Alumbrera's filter plant in Cruz del Norte, Tucumán, is first treated in a state-of-the-art water treatment plant and not "simply dumped" in DP2 canal as the article states.
The filter plant has its own laboratory where raw and process water and liquid run-offs are tested for chemicals. In 2005, this was the first laboratory in north-western Argentina to attain the IRAM 301 Standard (ISO 17025) accreditation granted by the Argentine Accreditation Organisation. It also monitors the quality of water discharges, together with the enforcement authorities, on a daily, monthly and bi-annual basis to ensure strict compliance with applicable regulations.
The report also incorrectly states that the DP2 canal is for use by farmers and animals. DP2 canal is certified by provincial authorities as a storm-water runoff canal.
2. Minera Alumbrera believes the charges of alleged contamination of DP2 canal are without legal merit.
When the complaint of alleged contamination of DP2 canal was filed in 1998, Minera Alumbrera took water samples in the presence of a public notary that were tested at the National University of Tucumán’s laboratory. The results showed that the samples were within the applicable levels as recorded in the case file.
The samples taken on the same day by the Border Police and the District Attorney Antonio Gómez showed high concentrations of copper. However, Minera Alumbrera contends that these results are without legal merit as the Company was not able to control the dispatch of such samples from Tucumán to Buenos Aires or to witness the opening of the sample containers. This issue has been raised before the judicial authorities and the Company has requested that the expert’s report be dismissed.
3. Minera Alumbrera is committed to maintaining surface and underground water quality and to using this natural resource in a sustainable way.
Minera Alumbrera is committed to maintaining surface and underground water quality downstream of the operation area. No water is returned to river systems and aquifers from the mining and processing operation in Catamarca province. A state-of-the-art retro-pumping system returns water from the tailings dam to be reused in the mining and processing operations in a closed system. Minera Alumbrera constantly monitors surface and underground water quality and to optimize water quality maintenance, new monitoring wells are annually opened in places suggested by supplementary studies.
Bajo de la Alumbrera mine extracts raw water from an underground reservoir located in Campo del Arenal. It uses just 48% of the water volume authorised by the provincial government and is focused on optimising the use of recycled water. Prior to the commencement of operations, baseline studies were conducted and included in the Environmental Impact Assessment (EIA) to ensure that operations did not impact the availability of water for neighbouring communities. Compliance with the designed model and current regulations is monitored by the provincial government on a fortnightly, monthly and quarterly basis according to the relevant variable. Minera Alumbrera's operations have not impacted the availability of water to neighbouring communities as claimed in the article.
As part of its water-efficiency measures, Minera Alumbrera has a policy of minimising the use of raw water and maximising the use of recycled water. In 2007, 71% of the water used in Minera Alumbrera's operations was recycled water and 29% raw water.
Far from impacting the availability of water to neighbouring communities, as part of its Corporate Social Involvement programme Minera Alumbrera has formed alliances with the Catamarca Irrigation Department, the municipal authorities and the Irrigators’ Association to support works to build irrigation channels and expand cultivable areas in Andalgalá and Santa María departments.
4. Minera Alumbrera is committed to meeting the highest environmental standards and to ensuring that its operations do not contaminate the environment.
Minera Alumbrera's environmental performance, including water use, management and discharges, is monitored by Tucumán, Catamarca and Federal government authorities.
Before commencing operations, Minera Alumbrera presented its Environmental Impact Assessment (EIA) to the Catamarca and Tucumán authorities for approval, which was duly approved. Updates to the EIA are presented to the Argentine authorities every two years. All submitted EIAs have been approved and subsequently monitored by the authorities. It should be noted that mining is the only activity regulated by a specific environmental protection law (Law 24.585) in Argentina.
It is inaccurate to state that the Minera Alumbrera operation has "become notorious for the enormous plume of contamination released at the many points along this chain of operations." In its 10 years of operation, Minera Alumbrera has received no legal fines or penalties for environmental incompliance.
Minera Alumbrera publicly reports on its environmental performance in its annual sustainability reports. These reports provide details of all environmental incidents and any remedial actions taken. No major environmental incident has ever occurred at Minera Alumbrera.
Minera Alumbrera has developed a mine closure plan which includes a full assessment of all significant social and environmental risks and controls, together with financial provisioning for closure and rehabilitation.
The closure plan is reviewed annually, including a review of assumptions, cost estimates and potential commercial opportunities and in view of any changes in environmental, social or legal circumstances or technological developments.
The article incorrectly suggests that the restoration costs and work will fall upon local authorities when the mine closes.
5. Minera Alumbrera is committed to the highest standards of personal and professional ethical behaviour. We fully reject groundless allegations of "tax evasion, corruption and contraband."
Minera Alumbrera is not under "scrutiny for tax evasion, corruption and contraband," as the article claims.
All products imported and exported by Minera Alumbrera are supervised by the tax authorities (AFIP) and the National Customs. Minera Alumbrera does not have any complaints filed for irregularities such as contraband, corruption or tax evasion in any jurisdiction of Argentina.
Xstrata Plc, the operator and 50% owner of Minera Alumbrera, carries out internal and external audits in accordance with the Group Fraud Policy to provide assurance that no employees or contractors of any Xstrata operation engages in improper or illegal behaviour. Xstrata Plc requires all its operations to adhere to four basic business principles: We work ethically: We work responsibly: We work openly: and We work together and with others.
Xstrata Plc and Minera Alumbrera are signatories of the United Nation's Global Compact, an initiative that fosters corporate social responsibility among private companies. The Global Compact promotes ten basic principles covering human rights, labour, environmental responsibility and anti-corruption. These principles are an integral part of Minera Alumbrera's business strategy and performance against these principles is reported publicly on an annual basis to the United Nations.
Claire Divver, GM Corporate Affairs, Xstrata on behalf of Minera Alumbrera
e-mail:
info@xstrata.com