OTTAWA PLEASE QUOTE FILE # JW03-10488
May 15, 2003
Honourable Bill Graham, PC MP
Minister of Foreign Affairs
418-N Centre Block
House of Commons
Ottawa, Ontario K1A 0A6
Dear Bill,
I recently learned following meetings in Canada and Chile that major Canadian mining company Noranda is pushing ahead with plans to construct a massive aluminum smelter and hydroelectric project - 'Alumysa' - in a pristine region of southern Chile, despite grave environmental, social, and human rights concerns.
The tremendous threat posed by this $2.75 billion megaproject to the local and global environment, to local communities, to Canada's reputation in Chile, and to jobs in the Canadian mining industry, are all strong reasons for the Canadian government to intervene to ensure that this project does not proceed, given the grave environmental and social concerns raised.
The environmental consequences of the project will include the destruction of numerous lakes, rivers, and thousands of hectares of virgin forest and the habitat of numerous rare and endangered species of flora and fauna, the annual creation of 980,000 tons of toxic and greenhouse gases as well as 1.1 million tons of industrial and toxic waste, and the devastatation of the Chilean salmon fishery - a crucial part of the country's economy.
The project will create only 1,100 permanent jobs, most of which will be filled by foreigners, and leave only 15% of the project benefits in the country and 4% in the region. These anticipated benefits will be overshadowed by serious economic side-effects, which will include a major increase in Chile's dependence on natural resource exports and an associated undermining of long-term economic, financial and labour market stability and sustainability; a further reduction in the country's already minimal environmental and labour standards; an increase in corruption and concentration of power in the central government; a major strain on public finances; and the damaging of other industries in the region, particularly fisheries, agriculture, and tourism.
Noranda has too often failed to live up to even minimal environmental guidelines, and neglected labour standards. The company continues to be plagued by lawsuits and investigations into its practices, while at the same time shutting down smelters in Canada and laying off large numbers of workers in the process. There are now 87 registered documentations of intentional violations by Noranda of Canadian environmental regulations, with fines of up to $1.2 million.
In accordance with its established way of doing business, Noranda is now strengthening its push for regulatory approval for the project, by drawing out the Environmental Impact Study (EIS) process in such a way that transparency and public accountability have been seriously curtailed, and the 1400 registered criticisms of the first draft of their EIS will no longer need to be addressed. Meanwhile, Chilean media and civil society are giving strong voice to the public outrage at the proposals of this 'Canadian mining company', and our reputation in the country and region is being seriously damaged as a result.
In this context, what is the Canadian government doing to protect Canada's reputation, Canadian jobs, and the economy, society, and environment of Chile, from the dangers posed by this project? Will the government confirm that Noranda has not approached the Export Development Corporation (EDC) for financial assistance with the project, and that the EDC will not extend financial assistance to the project if approached by Noranda? And finally, what is our embassy in Chile doing to ensure that Canadian company Noranda is fully living up to Chilean environmental, human rights, and labour laws and standards, and respecting due process in seeking to obtain regulatory approval for the Alumysa project?
I look forward to your earliest possible reply on this important matter.
Sincerely yours,
Svend J. Robinson, MP
Burnaby-Douglas
SJR/jhw
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OTTAWA PLEASE QUOTE FILE # JW03-10488
May 20, 2003
Sr. Ricardo Lagos Escobar
President of Chile
Palacio de la Moneda
Santiago, Chile
Dear Mr. President,
I recently learned following meetings in Canada and Chile that major Canadian mining company Noranda is pushing ahead with plans to construct a massive aluminum smelter and hydroelectric project - 'Alumysa' - in a pristine region of your country, despite grave environmental, social, and human rights concerns. Because this $2.75 billion megaproject poses a tremendous threat to the local and global environment and to local communities, it is imperative that your government not allow it to proceed.
The environmental consequences of the project will include the destruction of numerous lakes, rivers, and thousands of hectares of virgin forest and the habitat of numerous rare and endangered species of flora and fauna, the annual creation of 980,000 tons of toxic and greenhouse gases as well as 1.1 million tons of industrial and toxic waste, and the devastatation of the Chilean salmon fishery - a crucial part of your country's economy.
The project will create only 1,100 permanent jobs, most of which will be filled by foreigners, and leave only 15% of the project benefits in the country and 4% in the region. These anticipated benefits will be overshadowed by serious economic side-effects, which will include a major increase in Chile's dependence on natural resource exports and an associated undermining of long-term economic, financial and labour market stability and sustainability; a further reduction in the country's already minimal
environmental and labour standards; a major strain on public finances; and the damaging of other industries in the region, particularly fisheries, agriculture, and tourism.
Noranda has too often failed to live up to even minimal environmental guidelines, and neglected labour standards. The company continues to be plagued by lawsuits and investigations into its practices, while at the same time shutting down smelters in Canada and laying off large numbers of workers in the process. There are now 87 registered documentations of intentional violations by Noranda of Canadian environmental regulations, with fines of up to $1.2 million.
In accordance with its established way of doing business, Noranda is now strengthening its push for regulatory approval for the project, by drawing out the Environmental Impact Study (EIS) process in such a way that transparency and public accountability have been seriously curtailed, and the 1400 registered criticisms of the first draft of their EIS will no longer need to be addressed.
In order to prevent an environmental, social, and economic disaster for your country and its people, I would urge you, Mr. President, to prevent this misguided project from being pursued any further.
Sincerely yours,
Svend J. Robinson, MP
Burnaby-Douglas
Cc: Sr. Álvaro Zuniga, Chilean Ambassador to Canada
SJR/jhw