Chapter 2
From old to new mining
This chapter provides an overview of two historical mining cycles in Bolivia: silver, focusing on the Cerro Rico in Potosí; and tin, focusing on Simón Patiño and the city of Oruro. It then analyses mining in Latin America since the 1990s, showing how this has taken on shapes and dimensions fundamentally distinct from those of mining in earlier periods. It then scrutinizes the role of the Canadian mining industry and the Canadian state in Latin America in recent decades. Finally, it tells the story of a famous investor-state-dispute-settlement (ISDS) lawsuit, brought by the Canadian company Pacific Rim against El Salvador.
‘The advance of mining in Latin America has been very intense, in a very short period of time historically. We’re talking about countries which have developed the industry over just two or three decades, countries which had no mining, but which have now been completely invaded by it.’
– Lucio Cuenca, director of the Latin American Observatory of Environmental Conflicts (OLCA), Santiago de Chile
‘In Peru … there are nearly 8,500 hazardous mining waste sites throughout the country which the state has been unable to clean up, either because the companies responsible cannot be held legally accountable (in many cases they no longer exist), or because the damage is irreversible. Some of them date back to the colonial period.’
‘In 2016, a report by the Justice and Accountability Project found that there had been 44 deaths associated with the presence of Canadian mining companies in Latin America from 2000 to 2015, 30 of which were targeted assassinations. It also documented hundreds of injuries and cases of criminalization. All these abuses were widespread, occurring in at least eleven countries throughout the region. The authors
stressed that the incidents they documented appeared to be merely the tip of the iceberg, with many other reports they were unable to corroborate (Imai et al., pp.4–5).’
‘ISDS is a recent phenomenon which only began to grow significantly after the turn of the millennium. From just six recorded ISDS cases globally in 1995, there were more than 1,100 as of late 2020. Latin America and the Caribbean are disproportionately affected, accounting for 303, or 27.4 per cent. Of these, 23.1 per cent concern mining and hydrocarbons, more than any other sector (ISDS America Latina, 2021).
‘In Latin America, there were just two operational mines in Canadian hands in 1990; by 2012, that had leapt to 80. It is currently estimated that between 50 and 70 per cent of all mining activity in Latin America involves companies listed in Canada, ranging from giants like Barrick Gold, Yamana Gold, and Pan American Silver, all of which operate several mines across the region, to juniors which may only hold a single claim.’
Related articles
Guatemala: indigenous women take on Canada’s mining industry
Canada’s toxic policies in Mexico and Latin America
Where We Mine: Resource Politics in Latin America
The Political Economy of Agrarian Extractivism: Lessons from Bolivia
Mining: ISDS – a licence to plunder
Argentina: Chubut communities unite against the mines
References
Armeni, A. (2011) ‘Mining: The Risks for Afro-Colombians and the Indigenous’. Americas Quarterly. <https://www.americasquarterly.org/ fulltextarticle/mining-the-risks-for-afro-colombians-and-the-indigenous/> [Accessed 18 March 2023].
ARPAS (2021) Advierten intención del gobierno de permitir minería en el país.
<https://arpas.org.sv/2021/12/advierten-intencion-del-gobierno-de-permitir-mineria-en-el-pais/> [Accessed 18 March 2023].
Balch, O. (2019) ‘How a populist president helped Bolivia’s poor – but built himself a palace’. The Guardian.
<https://www.theguardian.com/world/2019/mar/07/how-a-populist-president-helped-bolivias-poor-but-built-himself-a-palace> [Accessed 18 March 2023].
Ballard, K., Cline, R., Neubig, T. and Phillips, A. (2012) ‘Mining Taxation and Global Investment: Evaluating Trade-Offs Between “Fair Share” of Resource Rents and Mining Development’. Proceedings. Annual Conference on Taxation and Minutes of the Annual Meeting of the National Tax Association, 105th Annual Conference on Taxation (November 15–17, 2012), pp. 55–63. <https://www.jstor.org/stable/prancotamamnta.105.55>
Beachy, B. (2016) ‘Why Mining Corporations Love Trade Deals’. Common Dreams.
<https://www.commondreams.org/views/2016/06/22/why-mining-corporations-love-trade-deals> [Accessed 18 March 2023].
Bebbington, A. (2010) ‘Extractive Industries and Stunted States: Conflict, Responsibility and Institutional Change in the Andes’. In: K. Raman and R. Lipschutz, eds., Corporate Social Responsibility: Comparative Critiques. Basingstoke, UK: Palgrave Macmillan, pp. 97–115.<https://wordpress.clarku.edu/abebbington/files/2010/12/Chapter-2010-Extractive-industries-and-stunted-states.pdf> [Accessed 18 March 2023].
Bebbington, A. and Bury, J. (2013) ‘Political ecologies of the subsoil’. In: A. Bebbington and J. Bury, eds., Subterranean Struggles. New dynamics of mining, oil, and gas in Latin America. Austin, TX: University of Texas Press, pp. 1–26.
Bebbington, A., Bury, J. and Gallagher, E. (2013) ‘Conclusions’. In: A. Bebbington and J. Bury, eds., Subterranean Struggles. New dynamics of mining, oil, and gas in Latin America. Austin, TX: University of Texas Press, pp. 267–288.
Boorer, M. (2021) ‘Mining: ISDS – a licence to plunder’. Latin America Bureau. <https://lab.org.uk/mining-isds-a-licence-to-plunder/> [Accessed 18 March 2023].
Britannica (n.d.) Bolivia – Increase in tin mining. <https://www.britannica.com/place/Bolivia/Increase-in-tin-mining> [Accessed 18 March 2023].
Brown, K. (2012) A History of Mining in Latin America. From the Colonial Era to the Present. Albuquerque: University of New Mexico Press.
Bury, J. and Bebbington, A. (2013) ‘New Geographies of Extractive Industries in Latin America’. In: A. Bebbington and J. Bury, eds., Subterranean Struggles. New dynamics of mining, oil, and gas in Latin America. Austin, TX: University of Texas Press, pp. 27–66.
Castro, C. (2017) ‘La minera que pide 16.500 millones de dólares de indem- nización a Colombia’. Semana. <https://www.semana.com/nacion/articulo/16500-millones-de-dolares-demanda-tobie-mining-contra-colombia-por-apaporis/528264/> [Accessed 18 March 2023].
Chacón González, J. (2011) ‘La piñata de los títulos mineros’. El Espectador.
<https://www.elespectador.com/economia/la-pinata-de-los-titulos-mineros-article-273872/> [Accessed 18 March 2023].
Deneault, A. and Sacher, W. (2012) Imperial Canada Inc. Legal Haven of Choice for the World’s Mining Industries. Vancouver: Talonbooks.
Fieweger, M. (2005) ‘Mining Transnational asking one million dollars in damages’. Mines and Communities. Available at:
<http://www.minesandcommunities.org/article.php?a=342uihn> [Accessed 18 March 2023].
Francescone, K. (2021) ‘El daño en el cerro está hecho’. Página Siete.
<https://www.paginasiete.bo/economia/2021/12/13/una-docena-de-hundimientos-amenazan-el-cerro-rico-tres-de-ellos-en-la-cima-317933.html#!> or https://eju.tv/2021/12/una-docena-de-hundimientos-amenazan-el-cerro-rico-tres-de-ellos-en-la-cima/ [Accessed 18 March 2023].
Global Freedom of Expression (2022) García v. Tahoe Resources Inc.
<https://globalfreedomofexpression.columbia.edu/cases/garcia-v-tahoe-resources-inc/> [Accessed 18 March 2023].
Gordon, T. and Webber, J. (2016) Blood of Extraction. Canadian imperialism in Latin America. Halifax, Nova Scotia and Winnipeg, Manitoba: Fernwood Publishing.
Government of Canada (2022) Canadian Mining Assets.
<https://www.nrcan.gc.ca/maps-tools-and-publications/publications/minerals-mining-publications/canadian-mining-assets/19323> [Accessed 21 May 2022].
Greenfield, P. (2016) ‘Story of cities #6: how silver turned Potosí into ‘the first city of capitalism’’. The Guardian. Available at:
<https://www.theguardian.com/cities/2016/mar/21/story-of-cities-6-potosi-bolivia-peru-inca-first-city-capitalism> [Accessed 21 May 2022].
Grieco, K. (2016) ‘Motherhood, Mining and Modernity in the Peruvian Highlands from Corporate Development to Social Mobilization’. In: N. Dhawan, E. Fink, J. Leinius and R. Mageza-Barthel, eds., Negotiating Normativity. Switzerland: Springer International Publishing, pp. 131–146.
Grupo de Trabajo sobre Minería y Derechos Humanos en América Latina (2014) El impacto de la minería canadiense en América Latina y la responsabilidad de Canadá. Available at: <https://www.dplf.org/sites/default/files/informe_canada_resumen_ejecutivo.pdf> [Accessed 21 May 2022].
Harris, P. (2020) ‘Cerro Rico production stops after nearly 500 years’. Mining Journal. Available at:
<https://www.mining-journal.com/covid-19/news/1385532/cerro-rico-production-stops-after-nearly-500-years> [Accessed 21 May 2022].
Imai, S., Gardner, L. and Weinberger, S. (2017) ‘The ‘Canada Brand’: Violence and Canadian Mining Companies in Latin America’. SSRN Electronic Journal,17. Available at:
<https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID3082286_code1019085.pdf?abstractid=2886584&mirid=1> [Accessed 22 May 2022].
Instituto Nacional de Estadística (2022) Bolivia: incidencia de pobreza extrema, según departamento, 2011–2018. Available at: <https://nube.ine.gob.bo/index.php/s/P8eMMLJbbzMWaUV/download> [Accessed 21 May 2022].
International Allies Against Mining in El Salvador (2016) ‘There Are No Winners: After Seven Years and Millions of Dollars, Pac Rim Mining Loses Suit Against El Salvador’. MiningWatch Canada. Available at:
<https://miningwatch.ca/news/2016/10/14/there-are-no-winners-after-seven-years-and-millions-dollars-pac-rim-mining-loses> [Accessed 22 May 2022].
ISDS America Latina (2021) En números – ISDS America Latina. Available at: <https://isds-americalatina.org/en-numeros/> [Accessed 23 May 2022].
Kuyek, J. (2019) Unearthing Justice. How to protect your community from the mining industry. Toronto: Between The Lines.
Lakhani, N. (2019) ‘Living without water: the crisis pushing people out of El Salvador’. The Guardian. Available at: <https://www.theguardian.com/global-development/2019/jul/30/el-salvador-water-crisis-privatization-gangs-corruption> [Accessed 22 May 2022].
Lama, C. (2021) ‘A Dark Side to Canada: An Analysis of Canadian Mining Corporations in Latin America’. [online] The Observer. Available at: <https://theobserver-qiaa.org/a-dark-side-to-canada-an-analysis-of-canadian-mining-corporations-in-latin-america> [Accessed 22 May 2022].
Leadnow.ca (2014) What is an Investor-State Dispute Settlement clause? <https://www.youtube.com/watch?v=2SbO2zDDpDA> [Accessed 22 May 2022].
Machado, R. and Fachin, P. (2015) ‘O modelo neoextrativista e o paradoxo latino-americano. Entrevista especial com Bruno Milanez’. Cadernos IHU em formação. Mineração e o impulso à desigualdade: impactos ambientais e sociais, 48, pp. 60–64. Available at: <http://www.ihu.unisinos.br/images/stories/cadernos/formacao/48ihuemformacao.pdf> [Accessed 23 May 2022]
MiningWatch Canada (2005) ‘The Taxman Needs to Help Shift from Mining Virgin Materials to Recycling’. [online] Available at: <https://miningwatch.ca/fr/node/5247> [Accessed 21 May 2022].
MiningWatch Canada (2021) ‘Bolivian Citizens Block Mill Operations, Accuse Canadian Company of Destroying UNESCO World Heritage Site’. Available at:
<https://miningwatch.ca/news/2021/10/20/bolivian-citizens-block-mill-operations-accuse-canadian-company-destroying-unesco> [Accessed 21 May 2022].
Moore, J., Broad, R., Cavanagh, J., Guerra Salazar, R., Karunananthan, M., Morrill, J., Pérez-Rocha, M. and Vergara, S. (2014) Debunking Eight Falsehoods by Pacific Rim Mining/OceanaGold in El Salvador. Available at: <https://issuu.com/pedrocabezas/docs/eight_falsehoods_final__march_17_20> [Accessed 22 May 2022].
Moore, J. and Pérez-Rocha, M. (2019) Extraction Casino. Mining companies gambling with Latin American lives and sovereignty through supranational arbitration. Available at: <https://miningwatch.ca/sites/default/ files/isds_report_final_0.pdf> [Accessed 18 March 2023].
Nugent, C. (2015) ‘El Salvador vs Pacific Rim: the price of saying ‘no’ to a gold mine’. bilaterals.org. Available at: <https://www.bilaterals.org/?el-salvador-vs-pacific-rim-the> [Accessed 22 May 2022].
OceanaGold (2022) El Dorado Project. [online] Available at: <https://oceanagold.com/operation/closure/el-dorado-project-el-salvador/> [Accessed 22 May 2022].
OECD (2022) Creditor Reporting System (CRS). [online] Available at:
Pazzano, J. (2021) ‘Trudeau government backpedals on investigating human rights complaints against mining companies’. Global News. Available at:
Petras, J. and Veltmeyer, H. (2018) ‘Extractivism and resistance: a new era’. In: J. Petras and H. Veltmeyer, eds., The Class Struggle in Latin America. Making History Today. Abingdon, Oxon: Routledge, pp. 12–25.
PODER; Unión de Ejidos y Comunidades en Defensa de la Tierra, el Agua y la Vida, Atcolhua; CESDER; IMDEC (2017) Minería canadiense en Puebla y su impacto en los derechos humanos. Available at:
<https://poderlatam.org/2017/02/resultados-finales-evaluacion-de-impacto-en-derechos-humanos-resumen-ejecutivo/> [Accessed 18 March 2023].
Provost, C. (2014a) ‘El Salvador’s communities battle to keep their gold in the ground’. The Guardian. Available at: <https://www.theguardian.com/global-development/2014/apr/11/el-salvador-communities-battle-gold-in-ground> [Accessed 22 May 2022].
Provost, C. (2014b) ‘El Salvador groups accuse Pacific Rim of ‘assault on democratic governance’’. The Guardian. Available at: <https://www.theguardian.com/global-development/2014/apr/10/el-salvador-pacific-rim-assault-democratic-governance> [Accessed 22 May 2022].
Provost, C. and Kennard, M. (2015) ‘The obscure legal system that lets corporations sue countries’. [online] The Guardian. Available at: <https://www.theguardian.com/business/2015/jun/10/obscure-legal-system-lets-corportations-sue-states-ttip-icsid> [Accessed 23 May 2022].
Richer La Flèche, E., Massé, D. and Honeyman, J. (2021) ‘The Mining Law Review: Canada’. The Law Reviews. Available at:
<https://thelawreviews.co.uk/title/the-mining-law-review/canada-capital-markets> [Accessed 22 May 2022].
Roth, T. (2017) Human Rights and the Canadian Extractive Sector in Latin America: Can Canada do more to prevent abuses and improve access to justice? [online] University of Ottawa. Available at <https://ruor.uottawa.ca/bitstream/10393/37123/1/ROTH,%20Tania%2020179.pdf>
Servindi – Servicios de Comunicación Intercultural (2020) ‘“Los pasivos son la mejor evidencia del daño de la minería”’. Available at: <https://www.servindi.org/actualidad-entrevistas-noticias/06/08/2020/los-pasivos-son-la-mejor-evidencia-del-dano-de-la-mineria> [Accessed 21 May 2022].
Smith, R. (2018) “Tempering the Gambler’s Nirvana”. A Review into to the issues and regulation of Third Party Funding in Investment Treaty Arbitration. Master’s thesis. Uppsala Universitet. [online] Available at:
<https://www.diva-portal.org/smash/get/diva2:1212686/FULLTEXT01.pdf>
Tetreault, D. (2015) ‘Social Environmental Mining Conflicts in Mexico’. Latin American Perspectives, 42(5), pp. 48–66.