Press release: Xstrata mine protests: Aid agency CAFOD welcomes release of Peruvian partners
Two CAFOD partners who had been detained by police whilst investigating human rights abuses near Anglo-Swiss mining company Xstrata‟s new Tintaya site in Peru have been released along with six others. Their arrest on unsubstantiated charges came following complaints of intimidation by local security forces.
Jaime César Borda and Romualdo Tito Pinto, who work for CAFOD‟s partner the Vicariate of Solidarity of Sicuani, were first held in a police station on Xstrata property for two days with 20 other prisoners before being transferred to a prison in the city of Cusco.
Sergio Huamani, a representative of the United Front for the Defence of the Interests of Espinar, was also beaten at the scene of the arrests. Only last month, Sergio was invited to London by CAFOD to meet with representatives from Xstrata, who promised to look into the group‟s concerns.
And in a worrying turn of events, Peruvian police on Wednesday (May 31) arrested Espinar's Mayor Oscar Mollohuanca who had been leading the protests against Xstrata. According to a report by Reuters news agency, dozens of riot police stormed the municipal building in Espinar to arrest the mayor.
CAFOD welcomed the release of Jaime and Romualdo, but called on the Peruvian authorities to release the mayor. In a statement the Catholic aid agency said:
“We welcome the release of our partner staff at the Vicariate and all those who had been held in relation to the protests at the Xstrata mine site. They are now getting the medical care they need and our thoughts are with them and their families as they start to recover from this terrible experience.
"We condemn the abuse and intimidation of our partners. The unsubstantiated charges against Jaime and Romualdo must be dropped and a thorough investigation into the beatings they and Sergio received must be carried out by the authorities. The Vicariate of Sicuani has worked for many years on behalf of the rights of communities in this area of Peru and is a trusted and long-standing CAFOD partner.
"Yesterday's storming of the mayor's office in Espinar is of great concern and we will work with the Church and our partners to ensure the mayor's safety whilst in custody and his speedy release. We recognise that both sides have committed violence and call on all parties to act peacefully at all times. In particular, the state of emergency declared by the Prime Minister must not be used by the authorities as an excuse to silence those who speak out on behalf of the welfare of communities."
Last week protesters in Espinar began a series of demonstrations calling for more dialogue between Xstrata and local communities with a protest camp outside the company‟s Tintaya mine site. Police were sent in to protect the mine site and control the demonstrations. Clashes resulted in police opening fire on protestors with two people being killed. The protests at the Xstrata mine led the Peruvian government to declare a 30-day state of emergency from Tuesday (May 29).
The Catholic Church, through the Vicariate of Sicuani, has been playing a mediation role in the conflict, appealing for the respect of human rights to be observed. Vicariate lawyers, who visited the detainees at the mine site, report that they had their shoes removed and were beaten on their heels, as well as receiving verbal abuse, being kept in freezing conditions and deprived of sleep. Monsignor Miguel La Fay Bardi, Bishop of the Prelature of Sicuani, said:
“We are saddened at the news of the death and the injuries produced as a result of the confrontation between the National Police and the civilian population. The current conflict highlights the confrontation of interests between the mining company and the Espinar people. We note that the basis for sincere dialogue between the two parties has not been achieved. It is necessary that both groups sit down and assess, with the active participation of the State, the impact of mining on the local and national economy, without pushing aside people's legitimate hopes for sustainable development based on a respect for human rights, so that a solution that satisfies everyone is reached."
On Monday during the visit by the Vicariate lawyers to those detained in the mine, Jaime César Borda, the environmental coordinator and Romualdo Tito Pinto, the organisation‟s driver, were arrested by Peruvian police while waiting for their colleagues to return. Sergio Huamani, who was with them, was beaten. The keys to the Vicariate‟s vehicle were confiscated and, following an un-witnessed search of the vehicle, police alleged they found firearms. The police then tried to force Jaime and Romualdo to sign a police statement, which they have refused to do.
CAFOD believes that the allegations and charges regarding the presence of firearms in the Vicariate‟s vehicle are part of a wider campaign of intimidation to discredit the work of the Vicariate of Sicuani and label their workers as extremists.
As well as the release of Mayor Oscar Mollohuanca and an investigation into the alleged assault on the detainees, CAFOD is making three additional demands:
- All acts of violence against protesters must be investigated and public security forces who have committed acts of violence must be brought to justice;
- Xstrata must urgently re-engage in an open, honest and constructive dialogue with the Espinar community leaders, following their meeting with them in London on 26th April. A peaceful resolution to the conflict is sought with the opening of a meaningful dialogue, facilitated through external and independent mediation; and
- The delegation of the European Union and the European embassies in Peru should investigate the harassment and unlawful detention of the Vicariate staff and community leaders of Espinar who are seeking to defend people‟s human rights, in accordance with the EU Guidelines on Human Rights Defenders.
ENDS
Background to CAFOD’s partner’s work in relation to Xstrata’s Tintaya mine site
The UK today is the second largest investor in Peru with a capital stock of £4.4bn in 2010. Much of this is concentrated in the country‟s extractive sector. Such investment has made a significant contribution to the high rates of economic growth enjoyed by the country in recent years.
On a local level however, many communities living on top of or nearby mineral deposits continue to suffer negative environmental impacts associated with mining activity. At the same time, their efforts to secure a better deal from extractive projects have faced significant difficulties. A number of these issues are well demonstrated by the case study of Espinar in southern Peru.
Xstrata’s Impact in Espinar
In 2006 UK/Swiss-registered mining firm Xstrata purchased the Tintaya mine from BHP Billiton. On doing so, it also committed to make voluntary contributions to a local development fund set-up by its predecessor in 2003 as part of efforts to obtain a „social license‟ for the project.
The agreement, known as Convenio Marco, states the company‟s intention to make payments of “up to 3% of pre-tax profits” to community development projects. Under this agreement Xstrata has made contributions totalling US$55m (£35m) to local development initiatives since 2006, particularly in the agricultural sector.
However, the firm‟s broader political, social and environmental impact in Espinar is arguably less positive. The Tintaya Foundation, which administers approximately 60% of the above development funds, is unaccountable to the local population or government as its finances are subject to little or no external scrutiny. Local authorities also claim they are undermined by parallel political structures operated by the foundation.
Furthermore, some nearby residents allege the mine has caused environmental damage in the area. In 2011, an independent scientific study by an environmental engineer from Kiel University examined water and soil samples taken from seven communities under the influence of the mine. The engineer found elevated levels of metals in the samples and concluded that the “water is not apt for human consumption, according to the national standards set out by Peru‟s environment ministry in 2008” and that “the soils are not apt for agriculture, according to the Canadian environmental quality guidelines of 2003”.
Another issue concerns relations between the firm and Peruvian law enforcement. A number of locals allege that Xstrata‟s private security services include off-duty and retired police officials. They further claim that police forces use Xstrata vehicles as a means of transport to local protests. They believe this has created bias in favour of the firm among officers who are also charged with policing local demonstrations against the mine. In one such protest in May 2011 sixteen local residents were left injured, four critically, following clashes between police and demonstrators.
An Outdated Agreement
In 2010 Xstrata announced plans to open a second open-cast mine in the province. The US$1.47bn (£925m) Antapaccay project is being constructed 10km from the existing Tintaya mine. Waste rock from the new mine will be deposited in the pit left by Tintaya at the end of its project cycle in 2012.
The provincial government and civil society organisations grouped under the umbrella Espinar Civil Society Interest Defence Association (FUDIE) argue that the creation of the Antapaccay mine (and the closure of the Tintaya one) fundamentally changes the nature of Xstrata‟s operations in the area. They therefore feel that Convenio Marco should be renewed to reflect the firm‟s new activities.
The agreement in its current form remains imperfect, not least because it is based on 2003 negotiations in which Xstrata was not even involved. The firm‟s commitment to pay “up to 3%” is imprecise and leaves the door open for consistent underpayment. Further, as the company does not publicly detail how much profit is attributable to individual projects, it is extremely
complicated (if not impossible) for locals to monitor what percentage of Tintaya / Antapaccay profits are actually paid into the development fund.
By renegotiating Convenio Marco Xstrata and the communities would be able to iron out these issues, thereby helping to gain local support for the project over the long-term. In addition, CAFOD‟s partners hope a new agreement would:
- help target Xstrata‟s contribution more effectively on projects which ensure the region‟s long-term development and which provide particular assistance to the poorest and most politically marginalised groups in the area.
- become the sole mechanism through which Xstrata made financial or other contributions to development activity in the province.
- replace the Tintaya Foundation with a project implementation vehicle which responds, and is accountable, to the provincial government and social organisations of Espinar.
- ensure Xstrata or any other body administering its contributions make publicly available all tenders, narrative and financial reports, and other associated documentation to enable external monitoring of the development fund.
- guarantee that all environmental impact monitoring and management be carried out in an open and participative manner.
CAFOD partners are calling on Xstrata to:
- enter serious talks over a new framework agreement, ensuring that negotiations are transparent, participative and adapted to the pace and decision-making mechanisms of the urban and rural communities of Espinar;
- fully cooperate with an independent scientific study of water and soil contamination, allowing analysts full access to the site without delay for this purpose, and making available in an accessible format all monitoring data collected by the company. If the mine is found to be responsible for the contamination, the firm must take immediate steps to remediate the damage; and
- maintain an appropriate distance between its private security services and the Peruvian police.
- For more information, interviews & photos please contact ppalmer@cafod.org.uk 020 7095 5459 | 07785 950 585
