Truth or Dare - The legacy of Gold Mining...

Jewellers who are rightly concerned about the providence of their raw materials will no doubt be concerned to have read at the beginning
of the year another account of an irresponsible Canadian gold mining
company. Goldcorp Group has been accused by CAFOD the UK Catholic Aid
agency of polluting the local river systems of the Siria Valley.

To quickly recap in September 2008 CAFOD found clear evidence of
contamination of water sources at a Goldcorp mine site. CAFOD's report
reveals acidity of the water at two sites reached levels of a pH
between 2.5 and 3, which is typically very damaging to stream biology.
(Distilled water has a pH of 7, vinegar 3 and lemon juice 2). As well
as high levels of toxic metals, including cadmium, copper and iron.

Roger Abraham the vice-president of the Siria Valley Environmental Committee
said "the water tastes like acid, like something out of a car a

Hard rock mining will more often than not involve 'cyanide leach pools'. This is a process where cyanide is poured over
rock to leach out the crushed gold ore. In doing so the leaching will
also filter out other metals and potential contaminants like arsenic,
mercury and lead. If this process is not managed to a high level of
environmental security and safety then the local rivers and groundwater
can become toxic through seepage. According to CAFOD, the contamination
was caused by acid mine drainage in the Tajo Palo pit.

CAFOD as well as Paul Younger from Newcastle University independently of each
other found considerable evidence of toxins consistent with The
Goldcorp subsidiary in the local groundwater supply. Additionally the
local community complain that 'Entremares' (the wholly owned subsidiary
of Goldcorp) have affected the local rivers. Of the 18 riverbeds that
fed the valley have now been reduced to 3 as a result of the company
using up to 220 gallons of water per minute during their operations.


Goldcorp naturally deny all the accusations that have been made, stating that
the Honduran authorities bi-monthly checked the water for contaminants
and found no evidence to support the claims being made by the community
or the international NGO's. This is despite in 2007 Entremares were
fined $55,000 for 'polluting and damaging practices'.
Currently the mine is now into its closure phase that should include an
environmental clean up programme. As with all these cases of bad
practice the mine arrives, extracts as much as it can and then leaves,
moving onto another location that will impact another community.

Truth or Dare.

There is no doubt in this world of truth or dare, the average consumer or
jeweller is justified in being confused by the myriad of claims and
counter claims over ethical issues in the mining sector and how they
relate to the jewellery product. There is naturally a cost to every
activity and this includes gold mining. We can either accept this and
work towards the improvement or be one of those who continually deny
any problems exist, as a staff member of the World Gold Council once
infamously stated at the end of a talk I gave by declaring, 'There is
no toxic waste in large scale gold mining'. Clearly this expert wasn't
dialed into the realities of life.

Yet as I witnessed on a recent trip to Peru to film at what will hopefully become one of the
new fairtrade/fairmined gold sites, it can be done responsibly,
transparently and with concern for the environment, even when using
toxic substances like cyanide. This community based mining organisation
is a small operation run by its 84 members of whom 7 are women.
Processing their gold ore, they to use cyanide in leach pools as
Goldcorp do, yet they manage the water issue very well through an
enclosed system were all the water is recycled back into the leach
pools. In the desert water is as precious as gold. A responsible system
should never pollute. Given that this mine will be independently
certified as fairtrade and fairmined, a jeweller can invest into this
sort of operation with total confidence.

In Conclusion.

Jewellers are the key to solving this kind of malpractice and promoting the
positive work that is being developed right across the industry. Our
first steps lies in asking the simple question "Where does this
material originate from?". This question is loaded with the power to
change two principle practices. Given that physical traceability in the
jewellery supply chain is the defining issue, the more we ask it, the
more our gold and stone suppliers will have to change their supply
chain practices to meet their customers demands. Whether you are a
large multiple retailer or a recently graduated designer out of art
college, the question creates change. The second practice the question
impacts is us. It forces us to start the search for traceable
materials, because many operators in the supply chain just don't care
where their goods come from. Jewellery with integrity demands the
highest standards and there is no place in our business for those who
don't care. A human life is worth more than gold, this is why we need
clean gold, not dirty gold.

Greg Valerio

The footnote to this article is that despite Goldcorp saying they are innocent,

The Siria Valley community and the public prosecutor in Honduras has begun
a process of investigation to establish who by action or omission are
responsible for this environmental crime categorised in Honduras' Law
of the environment based on the following sections of the law:

Article 104, subsection b): "Discharge of dangerous contaminants which
are prohibited or which have not been treated into national waters
including sea/coastal areas, or in continental and underground waters
including water supplies, or infiltrating the soil or subsoil, sewage
water or waste, which could cause the death of one or more people, or
serious damage to human health or the ecosystem in general."

Article 105: "Action will be taken against the person directly
responsible for the action or omission. The person directly responsible
is understood as the person who orders or participates in the carrying
out of environmental crimes, intellectually or physically."

Article 106: "The commission of the crimes classified in letters a) and
b) will be punished with the a sentence of imprisonment of between 3 and
10 years, aside from the sentence given for the specific crime which was
committed as a result of the action or omission. In this case, the
disciplinary measures that could also be imposed are definitive closure,
confiscation, cancelation or reversal/revocation, compensation and

Good sources to check out:

Business and Human Rights


The Guardian

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