South Americans Face Upheaval in Deadly Water Battles
13
Febraury, 2013
People
streamed into the central square in Celendin, a small city in the
Peruvian Andes, the morning of July 3, 2012. They were protesting the
government’s support for Newmont Mining Corp.’s plan to take
control of four lakes to make way for a new gold and copper mine. By
midday, there were 3,000.
Some
hurled rocks at police and brandished clubs. Then assailants shot two
officers and an Army soldier in the leg.
Blocks
away, construction worker Paulino Garcia left home on foot to buy
groceries. As he approached the central square, he encountered chaos.
People ran for cover as federal troops fired their weapons, Bloomberg
Markets magazine will report in its March issue.
One
bullet struck Garcia as he watched the mayhem. It ripped open his
chest and exited through his back. The 43-year- old father of two
fell to the ground and died. Another three people were shot and
killed, and more than 20 were wounded.
It
was the deadliest clash in 18 months of protests in Peru’s
Cajamarca region, where many residents say Newmont’s $5 billion
Conga mine will take water their villages and farms need to survive.
“He
died in a pool of blood,” says Adelaida Tabaco, Garcia’s widow,
38, sobbing inside her half-built adobe house in Celendin. “The
only thing the people want is water for families, but the mining
companies want to take it. And soldiers will kill if you get in the
way.”
Conflict
Victims
The
injured and dead in Celendin, 800 kilometers (500 miles) north of
Lima, are victims in a continent-wide conflict that pits South
American governments and big, often foreign- based companies against
people who stand to lose their homes as water is diverted to
industrial uses.
Leaders
across the region, elected on promises to fuel economic growth and
lift their populations out of poverty, are fast tracking water-use
approvals for projects like the Conga mine. Helped by mining and
agriculture exports, Brazil’s gross domestic product increased 43
percent from 2002 to 2012, after adjusting for inflation, while
Chile’s economy grew 58 percent.
Peru
is on target to expand 6 percent in 2013, the fastest pace in South
America, driven by investments in gold, silver and copper mines.
South
America has more water than any other region on earth, with 29
percent of the world’s reserves, according to the United Nations
Food and Agriculture Organization. The rub is that the water isn’t
always where the best mineral or agricultural resources are located.
Huge
Amounts
Mines
consume huge amounts of water to separate minerals from rock. It
takes 28 liters (7.4 gallons) of water to make 0.5 kilogram (1 pound)
of copper in Chile. After processing, the water at some mines is so
toxic that it can’t be reused. Peru’s biggest mines, such as
Conga, are high in the Andes, where there’s almost no rain from May
to October.
In
Chile, the world’s largest copper producer, vast deposits of
copper, gold and silver lie under the Atacama Desert, which is so dry
that rainfall has never been recorded in some places. And higher
demand means there’s less water to go around.
Growing
populations have pushed the amount of usable water per person down by
more than one-fifth since 1992 in Brazil, Chile and Peru, according
to the UN group.
Deadly
Consequences
National
leaders in Latin America are weighing short-term economic growth
against the public’s future needs for water, and the consequences
can be deadly. In Chile, the nation’s drinking supply is threatened
by past policies of allotting too much water to companies to spur the
economy, Public Works Minister Loreto Silva says.
Water
is already running out in places like Copiapo, a city of 158,438
people in the Atacama Desert, 800 kilometers north of Santiago,
because of mining and agricultural expansion, she says.
“In
some areas of the country, like Copiapo, we have a reduction or an
exhaustion of the resource,” Silva says. “If we don’t make
decisions today, we’ll be short of water in about a decade. That
forces us to take a long-term, strategic view in terms of water.”
Peru
faces similar long-term needs because water is in short supply in
areas where mines are expanding, says Hugo Jara, head of the
country’s National Water Authority. The government needs to build
$394 million of reservoirs and canals by 2016 for annual water
shortages in the dry season in the Andes, he says.
‘First
Priority’
“The
government has declared water its first priority,” Jara says.
“These protests helped to spur our attention.”
Governments
are making the right decision in providing water to industries that
benefit the majority of their populations, even if that means
displacing some people, says John Briscoe, a Harvard University
professor who specializes in water policy.
“It’s
of transcendental importance to the economy,” says Briscoe, a
former senior water adviser at the World Bank. “The value of the
water in the mining industry is very, very high.”
Drought
is making water even scarcer. In Chile, precipitation was 75 percent
below the historical average in 2012 in the mineral-rich Coquimbo
region, while rainfall decreased 70 percent in the Atacama Desert,
home to the world’s biggest copper mines, according to Chile’s
General Water Agency.
In
Peru, the government says rain has been below average for two years
in the highland mining regions because of El Nino weather phenomena.
Global warming has likely increased and prolonged droughts in some
regions of the world, according to a March 2012 study by the
62-nation Intergovernmental Panel on Climate Change.
Global
Struggle
The
conflicts in South America are part of an intensifying global
struggle for water. Two of the mightiest rivers on earth -- the
Yellow River in China and the Colorado in the U.S. and Mexico -- have
been so depleted by cities, factories and farms that they rarely
reach the sea, as they had for eons.
Increased
mining in Chile has already cost families, farms and villages the
water they need to survive. Near Caimanes, a town in a semiarid
valley 250 kilometers north of Santiago, farmhand Daniel Tapia walks
through a stand of withered almond trees, passing a bone-dry
irrigation ditch.
He
rests at a rock-strewn stretch of flat ground where the Pupio Creek
once flowed. It emptied in 2008, he says, after the nation’s
richest family, the Luksics, built a 500-meter-wide (1,640-foot-wide)
waste dump, known as a tailings dam, for the Los Pelambres copper
mine.
Iris
Fontbona
London-based
Antofagasta Plc constructed the dam atop springs that supplied water
for the town. The company is 65 percent held by the Luksics, a family
with a net worth of $20.7 billion, according to the Bloomberg
Billionaires Index. Iris Fontbona, heir to the fortune, is the
39th-richest person in the world.
Tapia,
40, says there’s not enough water for him, his wife and three kids
to wash, drink and cook. They survive on about 180 liters a day,
delivered by truck to their small home by the almond grove. That’s
one-eighth of what the average U.S. family uses.
“We
used that river to irrigate, but nothing is ever going to grow here
again,” Tapia says. “There’s no future for us. We’re going to
have to leave.”
The
Los Pelambres mine ran out of space to store the ground-up,
chemical-laden rock created from extracting copper ore, says Sergio
Valdebenito, who runs the tailings dam. The Luksics won government
approval for a second dam in 2004 and defeated legal challenges by
area residents during the next four years.
Draining
Drought
Valdebenito
says drought, not the mining, is drying up the valley.
“The
fact that we built this doesn’t mean we took the water from the
creek,” says Valdebenito, 52, pointing to water backed up behind
the tailings dam.
Juan
Villalobos, a construction worker who has lived in Caimanes since he
was born, says that the drought explanation isn’t true as he takes
a casual walk through the area with a reporter.
The
water that fed the creek didn’t disappear; it’s being held behind
the tailings dam and pumped back to the mine, Villalobos, 38, says.
He and 10 others went on an 81-day hunger strike in 2011 to protest
construction of the tailing dam.
On
a late-November day, a turquoise-colored lake stretches 2 kilometers
up the canyon behind the tailings dam, tapped by huge pipes pumping
water to the mine’s processing plants.
Rocks,
Dust
In
the valley below, rocks and dust cover irrigation ditches that
crisscross what were once fields of alfalfa, corn, wheat and
potatoes. In Caimanes, a town of 1,800 people 7 kilometers from the
dam, water is rationed.
Mining
companies are planning to spend $100 billion in Chile by 2025 to
increase production. President Sebastian Pinera says investment in
mines will drive economic growth in his nation of 16.6 million
people, helping it to gain developed- nation status.
“Mining
in Chile is booming, and I think it will continue growing at a very
fast pace,” says Pinera, 63, who became a billionaire before
entering politics by buying and selling stakes in companies.
It’s
not only mining companies that need water. More than 300
corporations, including some of the biggest in the world, have
converged on Paraguay, a country in the center of South America that
sits above one of the world’s largest underground freshwater
reserves.
Guarani
Aquifer
They’ve
registered with the Ministry of Industry and Commerce to draw water
from underground aquifers. One aquifer is the Guarani, which covers
an area larger than France, Germany and the U.K. combined. It sits
beneath Argentina, Brazil, Paraguay and Uruguay, supplying 15 million
people with water.
Many
of the companies -- such as Royal Dutch Shell Plc, Europe’s biggest
oil producer; Exxon Mobil Corp., the biggest U.S. oil company; and
London-based drugmaker GlaxoSmithKline Plc -- have no major
operations in Paraguay.
After
registering, these firms just have to buy enough land to drill a well
and remove water, says Silvia Spinzi, director of the water resources
division of the Paraguayan Environmental Ministry.
In
Peru, the conflict over water has turned deadly. Fifteen people have
been killed since 2010 in protests against government decisions
allowing mining companies to expand and use more water. Those firms
are planning to invest $53 billion in the next decade for mines that
will require water.
Water
Disappeared
In
San Antonio de Pachachaca, 54 kilometers south of Celendin, the lake
the village depends on started to disappear four years ago. That’s
when Newmont expanded its Yanacocha gold mine, says Claudio Garcia,
president of the local irrigation authority.
At
Little Totoracocha Lake near the town, set on a plateau 4,000 meters
up in the Andes, water levels have dropped since 2009, leaving a
wasteland of cracked black lake bed where there used to be frigid,
azure waters. Crops have withered, 200 farm animals have died and
taps at homes are running dry by early afternoon, Garcia, 32, says.
About
100 meters from the lake’s edge, on the other side of a rocky
ridge, is Yanacocha, a mine that produces 1.2 million ounces (34,000
kilograms) of gold a year.
Garcia,
a stocky man with thickly calloused hands from a life of farming,
parcels out the lake water that remains to the families living in
adobe shacks scattered across the windy plateau. He says he has
restricted water flowing into a network of irrigation canals to less
than 1 liter a second, a third the amount in 2010. That’s not
enough for subsistence farming.
Destroyed
Community
His
wife and four children run out of drinking water by midday, he says.
“This
has destroyed our community because everyone is fighting over water,”
Garcia says.
Luis
Cabrera, Newmont’s environmental specialist at Yanacocha, says the
weather, not the mine, caused the lake to lose water. About 40
percent of the lake’s water naturally evaporates during the dry
season, he says.
“When
it rains, it will fill back up,” he says.
Peru’s
environmental ministry disputed that explanation. From Jan. 31 to
Feb. 2, 2011, ministry inspectors examined the lake and part of the
Yanacocha mine. After the inspection, they concluded in a report that
water levels in the lake had plummeted because explosions to open
access to the minerals at the mine had diverted a major spring that
feeds the lake.
‘
Increased
Fracturing’
“The
increased fracturing of the surface rock due to the explosive
activities is affecting the direction of underground water, causing
the reduction and absence of flow,” the report says. Cabrera says
Newmont disagrees with the report’s findings.
The
protests in Peru began in April 2010, against Phoenix- based Southern
Copper Corp.’s Tia Maria mine near Arequipa, a city of 836,000
people close to Peru’s border with Chile. A year later, two people
died in protests against water use by Zug, Switzerland-based Xstrata
Plc’s Tintaya mine, 240 kilometers south.
In
October 2011, the anger sprang up around Cajamarca, a northern
Peruvian city with 362,000 people. Crowds opposing Newmont’s Conga
mine gathered in the city’s central square, where Spanish
conquistador Francisco Pizarro executed Incan ruler Atahualpa in 1533
after taking a roomful of his gold.
To
build Conga, Newmont will dig up two lakes to get at gold and copper
ore. The other two lakes will be filled with waste from separating
valuable metals from ore. Conga will produce 680,000 ounces of gold
and 106,000 tons of copper a year, Newmont estimates.
Reservoirs,
Canals
Newmont’s
Cabrera says Conga won’t deprive people in Celendin or anywhere of
water. He says the company is building a $65 million system of
reservoirs and canals for public use, which will supply ample and
cleaner water for villagers.
“We
believe they will have more water than they have now,” says
Cabrera, sitting in an office at the Yanacocha mine.
During
a tour of the Conga mine site in late October, it’s the dry season,
and the four lakes Newmont plans to divert are full of fresh water.
The lack of rain hasn’t depleted the lakes. One of the four, Blue
Lake, sparkles as the sun breaks through thick cloud cover.
“Those
lakes are full of water all year,” says Milton Sanchez, an
unemployed accountant from Celendin who has helped organize protests
against the Conga mine. “We don’t believe Newmont’s reservoirs
will replace the lakes.”
Conflict
Intensified
The
Conga conflict intensified in November 2011, when farmers blocked
roads and stormed mine depots. They were led by Gregorio Santos, the
province’s governor, who said Newmont would deplete the community
of water.
A
self-described environmentalist, Santos, 46, was elected governor in
2010 after more than a decade of advocating that the government
shouldn’t allow towns to run dry because of mining.
Last
April, Peruvian President Ollanta Humala gave a televised speech
about the Conga protests. Mining expansion was critical to Peru’s
economic future, and Newmont’s Conga mine should move forward, he
said.
“Our
government is conscious of the importance of mining investment to
reach the desired goal of growth with inclusion,” Humala said.
In
Celendin, starting in late May, Sanchez -- who had already been
criminally charged with inciting violent protests - - helped organize
a month-long round of strikes and street protests. Sanchez, 31, says
he’s never done anything violent or illegal. He says he has just
exercised his democratic right to protest.
Four
Dead
The
July 3 demonstration in Celendin that ended with four people dead
started out peacefully, but it soon escalated. Some demonstrators
threw rocks at police guarding the central square, and then someone,
whom police haven’t been able to identify, fired shots that struck
two officers and a soldier, according to the Ministry of the
Interior.
Police
responded by firing tear gas into the crowd. When officers ran out of
tear gas, they withdrew, and the police commander asked the head of
an army unit in town for help, according to an investigation by Human
Rights Watch, a Washington-based organization.
About
90 minutes later, troops returned and began shooting into crowds.
When
Adelaida Tabaco went out looking for her husband, Paulino Garcia,
gunshots were still crackling in the afternoon air. She says she
heard dozens of shots as she searched, and she saw bullet casings
rain from the sky as soldiers blasted from a military helicopter.
Troops were shooting at people running away,
she says.
‘Like
War’
“They
were firing at anything that moved,” she says. “It was like war.”
The
barrage began just as Garcia was walking past some houses, witnesses
told his wife. One person saw Garcia on the street when he was shot,
Human Rights Watch investigators found.
Marco
Arana, a former Catholic priest, says it’s morally -- and should be
criminally -- wrong for the government to allow officers to randomly
shoot and kill people.
“For
this violence to stop, the deadly police actions must be ended,” he
says. “The government is wrong if they think that with bullets,
torture and beatings, they can repress the justifiable concerns of
the people.”
A
day after the shootings, Arana, who works for a Peruvian human rights
organization called Grufides, helped lead a march against the Conga
mine in Cajamarca’s central square, just across from the town’s
18th-century Catholic cathedral. As he rested on a bench, helmeted,
shield-wielding riot police beat him and dragged him away, television
images show.
‘Serious
Violation’
Human
Rights Watch blamed the Peruvian government for the deaths.
“We
found evidence that strongly suggests that the use of lethal force
was unwarranted and constituted a serious violation of international
human rights norms,” the group said in a Sept. 20 letter to
President Humala.
Three
days after Garcia was killed, Humala said: “We deeply regret the
loss of human lives. It hurts us as Peruvians.”
Across
the developing world, governments are choosing to allot water for
economic growth -- sometimes making a short-term decision at the
expense of future needs.
“We
have to take a long-term view with water,” Chilean Public Works
Minister Silva says. “We have growth in this country, and we have
growing demand.”
The
decisions countries like Peru and Chile make now on water allocation
may eventually help them reach developed-nation status -- although
the costs, measured in human dislocation and human blood, could lead
some to question whether the path to prosperity will have been worth
the price.
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