On Friday, Ecuador’s government announced that it was revoking Ascendant Copper’s mining concessions for the controversial Junin Project, an open pit copper mine located in one of the world’s most ecologically diverse regions.
Publicly, the government says it decided to revoke a total of 587 mining concessions for economic reasons; for instance, because of the companies’ failure to pay proper fees on the concessions. However it seems more likely that it’s because of the social and environmental consequences of the project. The government of President Rafael Correa just doesn’t want to say that.
If the project went ahead as Ascendant planned, it would have caused massive deforestation, contamination of the local water supply, threaten rare and endangered species, and forcibly relocate hundreds of families.
On top of that, it would seem Ascendant’s original purchase of the concessions wasn’t even illegal because “the government failed to consult with local communities as mandated by Article 88 of Ecuador’s constitution.” Then there’s the glaring fact that even before the project was in full swing, Ascendant’s “activities have caused social discord with local communities in the area and have been tainted by human rights abuses.
As I’m sure you can imagine, the families effected by the Junin project are thrilled with the government’s move. They were pretty much expecting to happen, but expecting it and knowing it are two very different things.
“As an Intag resident, I am ecstatic to be rid of a source of conflict that was tearing our communities apart,” said Carlos Zorrilla, executive director of Defensa y Conservación Ecológica de Intag (DECOIN), a local grassroots environmental organization. “In our particular case, it is a clear triumph of community-based resistance over the destructive power of transnational corporations.”
Ascendant Copper, however–well let’s just say a name couldn’t be any more hypocritical. They continue to claim their innocence, saying things like this decision is “absolute bologna,” more or less a cowardly move by the government, and that there is just “no validity in this at all…we are going to protect those concessions with every legal alternative open to us.”
It would seem this recent move is also agitating the international business community. “Luke Penseney, CEO of Ontario-based Markets Intelligence, [says] that the government’s actions are dangerous. “You risk becoming a pariah, which is what Ecuador’s in danger of becoming,” said Penseney.
The position of Ascendant and the International business community is farce to say the least. They really do expect governments to be utterly subservient to them, to bow to their pressure instead of that exerted to protect communities, cultures, and the environment. And what happens when they can’t get their way? They issue veiled threats, (”You risk becoming a pariah”) and pledge their will to fight the law until it bends in their favor.
Fortunately, the government has the luxury of power so if it maintains it’s position, then Ascendant will undoubtedly fail. But it’s nonetheless a very revealing situation… One that, I must say, is far from being isolated. That is, except for the part about the government doing the right thing.
If you’d like to learn more about the situation with Ascendant in Ecuador, please visit Upside Down World.
Congratulations on your site and comments regarding Ascendant Copper losing it’s only important mining project. It’s the result of three and one half years of very intense, and at moments, very dangerous struggle- especially for the community members on the ground that had to put up with constant death threats, and continued disruption of their lives. There are just no words for the division and social chaos the company created. We hope the wounds are healed quickly
If we can sustain the energy at the Assembly level where the country’s new constitution is being drafted, one of these days a historian or sociologist will look back on this triumph as a major turning point in the giveaway of the South’s natural resources to the economies and companies of the North. A lot is at stake right now at the Constitutional Assembly, and the companies are spending a lot of money trying to lobbying it; but in a sense the excess is starting to backfire.
If I was to be asked what was the single most important event to bring Ascendant’s downfall, I’d have to say it was the imbecilic use of the paramilitaries in December of 2006 against the communities, their capture by the communities of Intag, and that it was captured on film and still digital and broadcasted to the rest of the world. There are countless human rights abuses committed by these arrogant transnationals- few times they’ve so well documented. The next step is suing the bastards in their backyard- as well as the mechanism that makes all this social havoc feasible- the Canadian Stock Exchanches…. so, keep tuned!!
Carlos Zorrilla
INTAG, ECUADOR
Greetings Carlos, Congratulations to you too! I respect the government for their decision here, but it was because of you and your peoples’ commitment to justice that enabled it to happen! It gives hope and inspiration to all Indigenous people.
About the Canadian Stock Exchange,is there any chance you are referring to this? If not, you may still find that useful….
Take Care Carlos, and if you ever come across something that you want help getting the word out on, please don’t hesitate to contact me or post a comment here.
Respectfully,
A
This is probably the most outrageous decision of this “President”. At the same time ecuadorian people keep falling deeper and deeper because of inlation, poverty, unemployment and raise of prices of principal consumer productos, as he spends millons of dollars for this Multimillion-dollar campaign (Correa is still in policital campaign after more than a year he won the elections, using OUR money, from OUR pocket!). Milk gets more expensive day after day, bread rise its price day after day.. TAXES increases dat after day… the list goes on, and inexplicably, ecuadorian people don’t seem to bother.
Now, the tyrannical government of ecuador along with his “Constituent Assembly”, with all the concentrated powers (more like a Dictatorship rather than a Democracy), has revoked all mining concessions and stopped all mining process. It is true that many things were unclear in a lot of contracts, due to corruption in past governments, but, is this really the answer? It is correct to close the door to foreign investment, in a new attack against legal security in ecuador? is it OK to close the door to developement and progress, for some political decision in order to gain votes and mantain popularity among all this blind people, who keeps applauding his actions as nacional economy and social levels keeps falling down? What about the consequent unemployment of so many people, entire families dependent of mining? Who is going to take care of them? Where’s the social responsability of this “Government”??
Another question: who chose to the Constituent Assembly to legislating? This Assembly was chosen to drafts the new constitution, and only this.
Maybe some day when more abuses occur (and this WILL happen), and maybe when we are directly and personally affected, we may open our eyes and see the tyranny and arrogance of which we are victims… before it’s too late.
I think calling the decision to ban the concessions “tyrannical” is a pretty big overstatement. After all the move is not arbitrary or entirely unjust in that it defends the environment and the People who are directly impacted by the foreign companies’ unsustainable business practices… practices that effect indigneous people 10 fold over what you’re talking about, Fernando. This move gives them some much needed relief and peace.
That said, if the move is effecting alot of people as you say, then the goal must be to ensure the government finds a healthy balance. Is it possible to find one without Ecuador being gutted and sold for temporary gains?
So many governments and corporations around the world desparately scream NO, while insisting that any movement towards a YES answer is nothing short of madness. But it’s not. In fact, it’s completely rational, however challenging it is and “radical” it may seem to be… Some day it will be seen as self-evident.
Until then, we struggle.