The Bank of the South: An Alternative to the IFIs?
In early June, the Bank of the South moved a step closer to becoming a reality as the Ministers of Finance of Venezuela, Argentina, Paraguay, Brazil, Ecuador and Bolivia met in Buenos Aires to discuss its founding constitution. In addition to functioning as a development bank and a source of stabilization funds, the Bank is seen as a precursor to a regional monetary system. Just as significant is the Bank of the South’s role as an alternative to the World Bank and IMF, whose policies in Latin America have faced substantial regional criticism. In this respect, the Bank is seen as a valuable mechanism for re-asserting Latin America’s economic independence and political sovereignty.

September 10, 2007

Ms. Karyn Keenan and Mr. Denis Tougas
c/o The Halifax Initiative
153 Chapel Street
Ottawa Ontario
K1N 1H5

Dear Ms. Keenan and Mr. Tougas:

Thank you for your recent letter, dated June 8, which was faxed to us and posted on the Halifax Initiative Web site.

Mr. Eric Siegel
President and Chief Executive Officer
Export Development Canada
151 O’Connor St.
Ottawa, ON
K1A 1K3

June 8, 2007

Re: EDC workshop on socially responsible mining practices in the Democratic Republic of Congo

Dear Mr. Siegel,

We would like to thank Export Development Canada for including the Halifax Initiative Coalition and Entraide missionnaire in its recent multi-stakeholder workshop on “how to best support the mining industry in the DRC.”  We were pleased to participate in this important discussion with representatives of the Canadian mining industry, Canadian government, consultants, international financial institutions and EDC, among others.

Mining Responsibility

Canadians like to think that our international image is of a flag on a backpack or a blue beret. The real image we've created in some parts of the world is of toxic waste and thugs with guns.

The behaviour of some of our mining companies abroad has been to Canada's shame. It has made this country a party to environmental destruction, corruption, displacement of poor people, child labour, oppression and war. At last, the industry has smartened up and is working with its critics to create rules for social responsibility.

Presentation to the Corporate S

The Philippines
Placer Dome Inc. (Placer Dome was acquired by Barrick Gold Corp. in 2006)
EDC: US$1.36 million loan [1]
ADB:  US$40 million loan [2]
CPP: $351 million (Barrick) [3]
   
The Marcopper mines are environmental disasters.  Placer Dome’s partnership with repressive dictator Ferdinand Marcos enabled the company to mine within a protected area and to use Calancan Bay, the source of livelihood for 12 fishing villages, as a toxic dumping ground for 16 years.[4]  Both the Mogpog and Boac Rivers have been literally overrun with toxic waste.[5]  Two children died when they were buried in the Mogpog mine waste spill.[6]  Studies conducted by the United Nations, government agencies and academics show that communities, who continue to rely on these rivers and on Calancan Bay, are exposed to unsafe levels of environmental toxins.[7]  Placer Dome denies responsibility for these environmental disasters[8] and sold its stake in the project in 1997.  The Province of Marinduque is currently suing Placer Dome and Barrick in the US, seeking damages for the environmental harm caused by the Marcopper mines.[9]

The Philippines
Placer Dome Inc. (Placer Dome was acquired by Barrick Gold Corp. in 2006)
EDC: US$1.36 million loan [1]
ADB: US$40 million loan [2]
CPP: $351 million (Barrick) [3]

The Marcopper mines are environmental disasters. Placer Dome’s partnership with repressive dictator Ferdinand Marcos enabled the company to mine within a protected area and to use Calancan Bay, the source of livelihood for 12 fishing villages, as a toxic dumping ground for 16 years.[4] Both the Mogpog and Boac Rivers have been literally overrun with toxic waste.[5] Two children died when they were buried in the Mogpog mine waste spill.[6] Studies conducted by the United Nations, government agencies and academics show that communities, who continue to rely on these rivers and on Calancan Bay, are exposed to unsafe levels of environmental toxins.[7] Placer Dome denies responsibility for these environmental disasters [8] and sold its stake in the project in 1997. The Province of Marinduque is currently suing Placer Dome and Barrick in the US, seeking damages for the environmental harm caused by the Marcopper mines.[9] 

Kyrgyzstan
Cameco Corp.
EDC: US$50 million political risk insurance [1]
EBRD: US$40 million loan [2]
IFC: US$40 million loan [3]
MIGA: US$45 million political risk insurance [4]
CPP: $35 million [5]

In May 1998, a company truck spilt a load of sodium cyanide, a chemical used to extract gold, into the Barskoun River, raising the cyanide concentration in the water to 50,000 times the permissible level.[6] In the days following the spill, hundreds, possibly thousands of local residents sought medical attention and several deaths were reported. Thousands were evacuated from the spill area.[7] A study published by Natural Resources Canada [8] concluded that few, if any, significant environmental impacts were generated by the spill - conclusions that were questioned by an independent hydrogeologist.[9]

Indonesia
Inco Ltd.
EDC: loans of $60 and $200 million[1]
CPP: $130 million[2]

For thirty years Inco enjoyed a cozy relationship with the repressive and corrupt Suharto regime.[3]

Members of the Karonsi’e Dongi and Sorowako indigenous communities lost their most productive agricultural land when the PT Inco mine was built, and they received paltry compensation in return.[4] Mining activity has degraded land and water resources,[5] and initial monitoring suggests that smelter emissions affect air quality in neighbouring communities.[6] Despite apparent efforts by Inco to resolve community claims in recent years, protesting residents report being threatened and intimidated by the Indonesian military and police.[7]