By Darío Aranda
For ten years in Andalgalá, Catamarca, one of the most important gold and copper mines in the world has operated. The villagers ask for a plebiscite to avoid the installation of another deposit, which would multiply the problems.
The mountains are ours, the gold of others
Andalgalá is the third largest city in Catamarca. For ten years there has been one of the most important gold and copper mines in the world. Inhabitants of the place assure that the undertaking did not bring any well-being, they denounce contamination and an complicit State. The residents ask for a plebiscite to prevent the installation of another deposit, which will be the most important in America and would multiply the problems.
Water not to drink. Air that better not breathe. A poor town, on mountains of gold. These are some of the contradictions of Andalgalá, a Catamarca town of 17,000 inhabitants, 240 kilometers from the provincial capital, where the largest gold and copper mine in Argentina and one of the most important in the world has been operating for ten years. The company, Minera Alumbrera, part of a Swiss-Canadian consortium, is denounced by residents of polluting the land, air and water. Social, governmental and judicial spaces in northwestern Argentina warn that the contamination would affect three provinces: Catamarca, Tucumán and Santiago del Estero, but the biggest disaster - they warn - would begin shortly: a new mine, three times bigger, even closer from the town and on the peaks that provide water to the entire region. The Self-convened Neighbors assure that it will be the coup de grace for the people. They ask for a plebiscite in the Esquél style. Chronicle from Andalgalá: A witness case of large-scale metal mining.
Rich mountains, poor people
Five hours by bus from San Miguel de Tucumán. Six from San Fernando del Valle de Catamarca. Always on destroyed routes, rubble on the edge of the precipice, desert climate. Postcard landscape. Andalgalá is not a town, it is a city. In its urban center there are supermarkets, cell phones that are offered in many shop windows, broadband to each block, many pharmacies, several 4 X 4. There is also a teaching staff that falls apart and the roof is scarce, a single hospital that always has Queues with several hours of waiting and neighborhoods that are not different from the fallen ones on the Buenos Aires suburbs map. The main square of Andalgalá complies with the rule of every town in deep Argentina: it is the epicenter of the urban center, in front of it is the Church (huge), a few meters away the municipality and the police station. Everyone greet each other in the square, the street or the bars. Everyone knows what the other is doing and also everyone knows what position the neighbor has on mining. A few work in the company; They charge an average of 2,000 pesos. Sum that ensures prosperity for the winners (in an area where unemployment exceeds the national average) and also ensures loyalty to the employer.
In the streets it is found that adults and children are the majority, far away. There are few young people. The generation of 20 to 30 years seems to have fled in search of that job that is scarce. Parked cars with low glass and tantalizing stereos are not in danger. There are few bars. No house has an alarm. All with neat, clean gray asphalt. On the horizon are the mountains that hide behind what everyone is talking about: gold, copper and the facilities of one of the most important deposits in the world. Only 4 × 4 vehicles or enduro motorcycles can spy on the wealth that the lunar landscape of the Argentine northwest keeps.
In one way or another, mining can be a topic of conversation all the time in Andalgalá: in a bar, the chronicler eats a tasty lamb for lunch. An anti-mining neighbor looks on suspiciously and, when he has gained some confidence, ruins the lunch: “It's cheap, isn't it? Because it is from the Alumbrera area. Few are encouraged by that meat ”.
“Ten years ago I welcomed the Alumbrera. I thought it was a sign of progress. We were all happy. But it was the mistake of my life. Everything was a lie: they did not give work, they brought more poverty and they contaminated everything. They are killing us, seriously, I swear to you ”, confesses with a lost gaze Urbano Cardozo, an Andalusian retiree who is evaluating selling his house and moving where the pollution does not reach him. Together with a score of neighbors, he militates so that Alumbrera “pays for the disaster he made and that the new project is not installed”. "It will be the death of the people," he says.
The Self-convened Neighbors of Andalgalá are teachers, retirees, merchants, construction workers and housewives who learned about chemical formulas, history, extraction processes, environmental laws and tax benefits that companies enjoy. "It's David and Goliath," they summarize from one of the poorest provinces in the country. Opposite are the most important mining multinationals in the world: the Swiss Xstrata (50 percent of the share package) and the Canadian Goldcorp (37.5 percent) and Northern Orion (12.5); the State at its three levels - municipal, provincial and national - and a community divided around the company: dismembered families, brothers who do not speak to each other, lifelong friends now estranged, merchants who lost customers for opposing mining , neighbors who don't even look at each other. A town where mining, like controversy, affects everyone.
October 1994. Catamarca Cinema-Theater, in front of the main square of San Fernando del Valle. Governor Arnoldo Castillo; the then Secretary of Mining and current Governor of La Rioja, Angel Maza; Former president Carlos Menem and an executive, tall, blond and assisted by a translator, announced the launch of the infrastructure works of the Mina Bajo la Alumbrera deposit, in front of a hundred euphoric officials and businessmen. "Today begins takeoff, the day dreamed of for this long-delayed province," said the elderly governor with elusive tears. Menem, in a very neat blue suit, was no less: "This is the Argentina that we need, that opens up to the world, that receives investments, that promises a future." The executive of the multinational, assisted by a translator, thanked: "Our investment is thanks to the new laws promoted by the Government, without it we could not have started this work."
Three years later, on October 31, 1997, Carlos Menem flew with his entire cabinet to Andalgalá to inaugurate the extraction stage. True to his style, he was an active protagonist of the first explosion on the mountain and the first grinding. Then came the lavish lunch at the facilities of the same mine, at 2,600 meters, in the exclusive city on the heights for the professionals and workers of the multinational.
Andalgalá was founded on July 12, 347 years ago, and the good memory of mining had always been present. At the end of the 19th century, and until the beginning of the 20th, it was a region that knew well-being sheltered from the extraction of mineral with the system of galleries, on a small scale, with enormous demand for labor, pick and shovel as tools, donkey back for transportation. They were years of development, when Catamarca stood as a synonym for growth; moments recorded in family memories, transmitted to children and grandchildren. Hence the germ of welcome and joy at the arrival of a mining company. "But this time the extraction would be different and the benefits distributed in a different way than last century," lamented Roberto Cecenarro, one of the first opponents of Alumbrera and a pioneer in warning that the honeymoon between residents and the company would not last long.
The advertising campaign of the company and the politicians on duty promised the construction of a neighborhood for 5,000 people, new schools, a highly complex hospital, paved roads, 6,000 jobs. None of those works were captured. The company assures, today, that it employs 1,800 local people and, indirectly, created 8,200 new jobs. The Autoconvocados deny it: they say that no more than 90 people from Andalgalá work in the mine. The rest all "foreign professionals". The mayor, an ally of the company, speaks of lower figures: "It used to be said that there would be a thousand, two thousand, three thousand jobs, but there are no more than 40 or 50 effective Andalgalians."
Aída Orellana, a slim, blond, histrionic and firm-speaking woman, had believed, like all her neighbors, in promises. He invested everything he had, and more, to build a small hotel. He believed that the city would grow, that Alumbrera would give him guests and prosperity. But the rooms rarely hosted visitors. When he realized the deception, he began his militancy against the mining company. "It was all a big scam and they poison us," he says over and over again, shaking his head. She was so committed to the fight that she ended up being estranged from the whole family, who still blames her for the absence of clients today.
Alumbrera acknowledges that the site has ten years to live and even today continues to emphasize that the undertaking "is a source of opportunities and economic benefits for Argentina and especially for the communities near its facilities." “He promised to develop the place, buy from local suppliers; But the truth is that they don't buy tomatoes or lettuce for salads from here, ”Orellana refutes.
The Gold and Copper Mine
The gold and copper deposit belongs to the Catamarca state, the University of Tucumán and the national state, which make up the company Yacimientos Mineros de Agua de Dionisio (YMAD), but they ceded the exploitation to multinationals. It works 40 kilometers from the urban area of Andalgalá, 300 from the provincial capital, between mountains and Olympic fences.
Very few can enter the site, which works day and night and where a huge pot two kilometers in diameter and six blocks deep is the space where explosives, 36 huge mining trucks and monumental mechanical shovels remove 340 tons of rock per day. Far are the images of the movies: there are no picks, shovels us, there are gold nuggets and, not even, there are miners.
For each ton of rock, six grams of gold and six kilograms of copper are obtained. Data from the same company boast that Alumbrera uses the same amount of explosives that is required per year throughout Argentina in a single month. It is no accident that clouds of dust rain down on the city. In addition, specialists warn that the removal of mountains of rocks accelerates the production of sulfides, which with the air and water produce drainage and acid rain, with their pollution in tow.
“Acid drainage represents one of the main environmental problems in mining. These drains occur when the sulfide-containing minerals present in the rock are exposed to air or water, turning into sulfuric acid. This acid can dissolve heavy metals (lead, zinc, copper, arsenic, mercury or cadmium) present in rock and in waste or tailings into surface and underground water. They produce serious contamination. Acid drains occur naturally, but are significantly magnified as a consequence of mining. In addition, these drains can travel long distances downstream ”, they explain from Greenpeace.
According to data from the same company, the deposit is among the ten largest copper enterprises in the world (with 190 thousand tons per year) and among the 15 gold ones (with 23 thousand tons). "Minera Alumbrera is the largest individual electricity consumer in Argentina," says the same company on its website. It has hotels for employees and visitors, 500 rooms, a dining room, game rooms, a gym, an internal bus line and three of its own planes that act as air taxis for executives to Tucumán and Catamarca.
The extraction process consists of dynamiting the walls of the mountain, transforming the rocks into powder and diluting them in acid solutions that purify the mineral. This viscous solution is again purified by a large-scale flotation process. All the waste is destined to a huge garbage dump, 30 hectares and 150 meters high, called the “tailings dam”. The gross product is sent by a monumental mineraloduct –– an underground pipe– 310 kilometers long that passes through Catamarca to Tucumán. It carries a mud with diluted acid and mineral. It reaches Cruz del Norte, in Tucumán, where the “Tren Alumbrera” (the company has four locomotives and 182 own wagons) transports concentrates to the port of Santa Fe. From there it travels abroad, where it will be refined. The mega-enterprise also has a 220-kilometer electroduct, high-voltage power lines that cross a large part of Catamarca and Tucumán.
The infrastructure works required an investment of 1,200 million dollars. “Little of this expense is borne by the company: Article 22 of Law 24,196 legislates that from the three percent that the company pays in royalties, the costs of transportation, freight, insurance, milling, marketing, administration, smelting and refinement. In this way, the monumental works are paid for by the State ”, explains Marcos Pastrana, from the Intersectorial de Tafí del Valle, in Tucumán, where they also accuse contamination from neighboring Catamarca.
Ten years later: the accusations
The Tucumán prosecutor Antonio Estofán denounced the company for contamination. The federal judge of Santiago del Estero Felipe Terán investigates a complaint of the presence of copper and lead in the northern province and a possible contamination that would reach the tourist Termas de Río Hondo. Rosario justice investigates the alleged documentary trafficking and illegal export of metals. Residents of Villa Vil, in Catamarca, denounced the company for a toxic spill from the mineraloducuto. Social organizations in Tafí del Valle, in Tucumán, warn of air pollution, radiation from the bus and invasion of indigenous cemeteries. There are only five of the dozens of accusations that Minera Alumbrera has against him, driven by a great diversity of sectors, localities and provinces.
The head of the company, Julián Rooney, responded to the accusations: “There is no contamination of any kind. The important work carried out and the conclusions of the environmental monitoring have served so that the industry can demonstrate its adherence to compliance with environmental regulations. "
The Autoconvocados have been demanding “independent” studies of land and water for years. But the only answers they get are analyzes by the same company or sporadic and selective surveys of the province. They disbelieve these studies because they syndicate the company as an accomplice of the company. “Alumbrera means 70 percent of the fiscal income to the provincial government. Knowing our ruling class, do you think they will denounce their economic supporters, ”warns Omar Ramos, a local resident.
“The specialists recommend doing follow-ups, permanent studies, of months. They don't do any of that. To give you an idea: the land and water studies are not controlled by anyone: the company selects the samples, takes them to the laboratory itself and informs the control bodies what the results were ”, denounce the Self-convened.
Tracking analytics is far from the reach of neighbors. But they exhibit their peasant evidence:
-Before it grew everything: olives, apples, walnuts. Now nothing grows. Every day the earth is poorer.
Alberto Zossi, an ancestral inhabitant of the area, assures.
-The animals die on me. It is not understood why. For me it is because they drink the water that comes down from La Alumbrera.
Luis Alvarez complains.
-The chickens are getting dwarfed. They look like pigeons.
Marcela Orellano smiles, missing the robust animals she used to feed her family.
A technical study involving various sectors was carried out by the mining expert Héctor Oscar Nieva. This is his master's study for the University of Nancy (in France), which confirmed that the tailings dam (the huge pot that serves as a mining waste dump) has leaks that contaminate the underground water tables in the area. The company recognized the losses and installed a back-pump system so that the solution that escapes the mining corral returns to it. Nieva assures that the contamination continues to spread through the Catamarca subsoil. “The problem may be aggravated when the mine closes. It filters into the Vis Vis river and the final destination of all the pollution will be the most important freshwater reserve in the region. There are already animal deaths in the mining company's ecological impact zone. They say they do not pollute, but it is clear that there is something, "said the specialist.
The president of Alumbrera affirmed that “the study by engineer Nieva takes into account partial data and makes extrapolations that have nothing to do with the reality of what really happens, therefore it lacks a technical foundation. On our website you can find a work with the arguments that explain why the conclusions reached by the engineer Nieva are inaccurate ”.
From Greenpeace they assure that “it is evident that mining activities frequently produce short-term economic benefits to communities. But they also produce long-term health and environmental impacts that mining companies often avoid paying for. ”
However, in statements to the newspaper La Gaceta, the Secretary of Mining of the Nation, Jorge Mayoral - who refused to speak with this newspaper - surprised the people of Tucuman and Catamarca by denying that there is an environmental problem linked to mining activity and assured that "Some, mischievously, pretend to generate uncertainty." The Federation of Environmental Organizations of Tucumán did not take long to answer him: "It cannot be that the official is unaware that the activity carried out by the firm not only deserved the condemnation of the community, but also that its main manager is accused of alleged contamination , by the Federal Justice ", agreed the representatives of the entity, Pedro Ottonello and Juan Manuel Prado Iratchet.
In the Calchaquí valleys, the Intersectorial de Tafí del Valle –which brings together the social organizations of the place– declared itself in favor of “no to metal mining due to the serious environmental impacts it causes in the community”, assured Marcos Pastrana, a reference of the Intersectorial, who recalled that indigenous sacred spaces were invaded with the bus towers. They demand that the zone of the valleys of Tucumán be declared a “protected area”.
Word of mouth in Andalgalá shows that gastrointestinal diseases have multiplied, but neither the local hospital nor any government agency reports any study. Only once, in 2003, were statistics available from the local hospital: they confirmed that, since the installation of the mine and until 2003, respiratory illnesses in children had increased from 1,374 to 2,244. All of them pointed to the mine as responsible. Never again were health data of the place disseminated.
"The project was designed following the environmental standards equivalent to those required by the leading countries in copper and gold production, and the guidelines established by the World Bank," explains Alumbrera in his presentation folder.
Water, divine treasure
Water is the gold of the future, warn various sectors that even assure that the wars will be for this natural resource. In Catamarca "there is no lack of liquid, but neither is there excess in the gross", smiles Urbano Cardozo, the militant retired. Alumbrera has an extraction permit of 1,100 liters per second. Which is the same at 66,000 liters per minute: almost four million liters per hour in a semi-desert area. "Better not do the account of how much water a day goes with that gold," ironizes Blanca Rado, retired teacher and studious of what large-scale mining entails.
Alumbrera has six wells drilled deep, from where it sucks the groundwater 24 hours a day. "The extraction of water does not affect the availability of water in neighboring towns at all," Rooney told Página / 12.
Canada's Northern Orion (Alumbrera shareholder) will shortly begin the infrastructure works of another field, three times larger than Bajo Alumbrera, just 17 kilometers from the town, on top of the mountains located in front of the city center. It plans to mine gold, silver, copper, and molybdenum. "The development of Agua Rica is technically feasible, and could be developed as a low-cost, long-life deposit," acknowledges the letter of introduction from the same company. It plans to process 70,000 tons of rock per day, with a useful life of 30 years.
The Self-convened Neighbors point out that, in addition to the same pollution that Alumbrera carries, the three rivers - the Blanco, Candado and Minas - are born from that mountain, which supply water to the entire region: almost a quarter of the province. Everyone recognizes that this will be the last blow to the people. "No people can survive without water," they say over and over again. Many houses and lands have already released their "for sale" real estate poster.
-My daughters are studying in the provincial capital. I ask that you please do not return. Let them start their life there, even if it hurts my soul. What are they going to come to? This is a doomed city.
Regrets Dito Salas, councilor of Andalgalá, historical opponent of Alumbrera.
- “You can live without gold, not without water. If the new mine advances, this will be a ghost town, "said Juan Mansilla, a young music teacher who also knows history:" It's incredible, but the same thing is happening as 500 years ago. They come from outside, they show you little mirrors, bags of food, they take away the wealth and leave death and destruction ”.
"They suck the water," declared the Church of Bariloche about the mining enterprises that are trying to replicate in the south what they are already doing in Andalgalá, where the population is also very believing, but the local curia does not want to move mountains or parishioners against Alumbrera. “Here the Church has power, but it is also pro-mining,” explained Matías, a young student in the main square, in front of the town church. He did not want to give his last name: in his house they are prominence.
The water used is irretrievable. There is no possible treatment to make it profitable again. If the new operation starts up, the amount of water used will be triple. The new mining venture is called, paradoxically or for black humor, "Rich water." The irony of fate, the mine will take three times more than water that will not be more insipid, odorless, or colorless.
Plebiscite: Yes or no to the mine
The mayor, José Eduardo Perea, is 49 years old. He always lived in Andalgalá. Dark complexion, straight black hair, styled with a neat parting on the left. He is justicialist. Think about each question for a few seconds. During the campaign that brought him to the municipal executive, he had promised a plebiscite to decide what to do with the Agua Rica deposit. But now he found a problem: “The people must decide, of that I am sure, but they are not yet ready because they do not know the issue. Likewise, I can assure you that nothing has been contaminated since my administration ”, he told Página / 12. When asked when the same voters who led him to be mayor will be prepared for the plebiscite, he says he does not know, but he does assure that the company is innocent of everything. He only blames, over and over again, "the previous governments that did not demand that the company keep its promises"
“He is a prominer,” explains Dito Salas and risks some possible causes for this change of mind: “A single mining truck is worth more than what the municipality collects for the entire year. Alumbrera pays the fuel for municipal vehicles and the ambulance, buys supplies for the hospital, pays wakes for the poor, distributes bags of food, gives tools to technical schools and even buys medals for graduates, to whom he promises a job that It will never come". The company's advertising also states that it delivers educational materials to schools, helps clubs and social institutions, gives toys on Children's Day, and assists - always according to official advertising - 50 health posts with medicines. Everything that once belonged to the State, today is carried out by the company.
"Communal chief or councilor who opposes the mine usually suddenly changes his mind," smiles Luis Maidana, a young man who works at the bus terminal.
And the provincial authorities? The head of Mining, José Siner never responded to the numerous calls from this newspaper and, for two weeks, he was - according to his secretary - at a site in Salta "where there are no telephones, not even cell phones." The Secretary of Water and Environment of Catamarca, Juan Cristóbal Acuña, was more direct: he told his assistant that he has nothing to say on the subject.
In 2004, Minera Alumbrera had a turnover of 683 million dollars: 1,980 million pesos. "Taking into account the last four quarters (the last two in 2004 and the first two in 2005) Alumbrera paid 51 million pesos in royalties," Rooney explained to Página / 12. It is 2.5 of your total billing.
According to the company itself, in its publication "Minera Alumbrera and the Community Community Supplement", the municipality of Andalgalá has just been paid in mining royalties: 14 million pesos. This represents 0.7 percent of the gold and copper that in the last year was extracted from the mountains of Catamarca.
Deputy Marta Maffei visited the area last year and repeated a piece of information: "The ten large mining companies will take 25,000 million dollars of minerals from the country, of which only 380 million will remain in the country."
It is that the money that the mining companies take does not have withholding for exports (as if they pay, for example, agricultural products).
"They don't want the Alumbrera because they have work and food, but many of us depend on her, so we don't want her to leave," said Antonio Frías, about 40 years old, stocky, unemployed; sitting in the central square of the town. One of the few voices favorable to the company that this newspaper found.
The Autoconvocados are promoting a binding plebiscite before the end of the year, but they know that it is a double-edged sword. In case of reaching that instance, the great unknown is to know what will happen. It is a very different context from Esquél. "There is a lot of need here, brother, the company has oiled all its welfare, it drops its crumbs in many places and these people, unfortunately, depend on Alumbrera to survive," said Cecenarro, a pioneer militant against the company.
Aída Orellana, although a staunch opponent of mining, believes that the plebiscite for him did not succeed. “The company rules here. Give food. It is very different from Esquél. There is a lot of need and people obey whoever puts something on the plate ”, he laments. The Autoconvocados retorted: “We have nothing to lose. You have to make it clear that you can live without gold, but not without water ”.
While supporting the refusal of the Secretary of Mining of the Nation, Jorge Mayoral, to speak with this newspaper, the spokesmen of the Secretariat insisted that “the laws cannot be changed according to the taste of the people. There is legislation that must be complied with. You have to maintain predictability. We invite communities to participate together with companies, but the laws that are in place must be complied with ”. Coincidence: the owner of Alumbrera, Julián Rooney, highlighted the “importance of maintaining clear rules of the game over time. The fact that they have maintained until now means an incentive for future investments ”.
In April of last year, the residents of the town of Choya (part of the department of Andalgalá) rejected the Agua Rica project due to the environmental risks that it could cause with water and air pollution. They did so through a document that 80 percent of the population adhered to.
"Bajo de la Alumbrera is a source of opportunities and economic benefits for the country and especially for those communities close to its operating facilities," says Alumbrera's advertising today.
Similar to ten years ago, the owner of Agua Rica, the Canadian Northern Orion - which has 12.5 percent of Alumbrera - already promises that it will employ more than 600 people and that it will carry out numerous works for the good of community.
Argentina: the spoiled girl of mining (by d. A)
Esquél, in Chubut, is the one before the mining exploitation. Jáchal, in San Juan, during. Andalgalá, the after extraction: when the gold is gone and the mountain is a leaky colossus. Only three of the fifty metal mining ventures in Argentina, which have as many promoters as detractors. State and business on the one hand. Social organizations and residents on the other. Promises of investment, work and development on one side. Complaints of environmental degradation, poverty and looting by the other. State of affairs of a silenced controversy.
The country's mining exports have multiplied in the last decade. According to official data from the Ministry of Industry, Commerce and Mining (Sicym), in 1993 Argentina exported 15.8 million dollars. After the new mining laws were approved, the change was drastic: in 1999, it was 705 million; in 2001 of 754 million, in 2002 of 990; 2003, 1,100; and the projections for 2006 are 1,466 million.
According to the same official data: metalliferous minerals such as gold, silver and copper represent two thirds of the exported volume of the so-called “mining boom”. “The menemato laws are seductive: they are environmentally and tax highly beneficial for companies,” explains Marcos Pastrana, from Tafí del Valle.
The legislator Carlos Tinnirello, who specializes in the subject, assured that “the mining companies have just started the invasion in the country, but the projections of the same companies indicate that a great invasion of companies awaits us. And, of course, this type of undertaking can never be developed without political commitments from the governors and the national executive, who listen a lot to the mining companies but very little to the populations who warn about the risks, especially the watersheds that are they compromise "
“The mining companies manage the media, the municipalities, the provinces, even the highest officials. They exert harassment on the populations that oppose and deceive, promising a welfare that will never come. Meanwhile, the executive, legislative and even judicial powers are at the disposal of the companies, which always have political and legal devices at hand to achieve their ends. We must be aware that it is about the looting of the country's natural resources ”, denounced Tinnirello.
In the luxurious hotel in Toronto, Canada, where the World Mining Congress was held, all the prominence specialists fixed their eyes on Argentina and cataloged it as "the spoiled girl" of the sector. They remarked that the star of the moment has 5,000 kilometers of mountain range, 75 percent of its resources unexplored and a gift of only three percent. Multinationals from the United States, Canada, Australia, Chile and Europe singled out Argentina as the region to invest and Latin America as the destination of the decade. They do not stop setting the advantages of current legislation. At the international mining mall they were, together with the Secretary of Mining of the Nation, Jorge Mayoral, governors and mining authorities of San Juan, Mendoza, Catamarca, La Rioja, Salta, Jujuy and Santa Cruz.
After the mining fair, the Secretary of Mining traveled to Washington to meet with the head of the Inter-American Development Bank (IDB), Enrique Iglesias, who promotes mining as "development for the entire region." “At the request of the Minister of Federal Planning, Public Investment and National Services, Julio De Vido, Mayoral met with Iglesias in order to evaluate support plans to promote mining activity in Argentina and promote the sustainable development of small and medium-sized and large mining ”, reported the official press release of the Secretariat.
At that congress, the state mining company YMAD - owner of the Alumbrera deposit - offered international companies a set of "areas rich in copper, gold, silver and molybdenum, of Catamarca." In a business review titled "YMAD, A Great Opportunity," the company explained to multinational executives: "New reserves have been littered and an ambitious drilling plan has been developed. There is an area with gold, silver and manganese structures ”.
The 2004-2005 Biannual Plan of the national Mining Secretariat insists that Argentina has greater opportunities than other regions due to the “rethinking of tax and legal frameworks” that it has (the laws of the 90s).
From the Chamber of Mining Companies (CAEM) they advertise that the sector exports almost as much as wheat. But there are three radical differences: agriculture, despite its industrialization, employs much more labor; it has withholdings on exports (for every ton that leaves, a percentage remains in the country) and, above all, the land suffers degradation, but that can be treated; while minerals are a non-renewable resource: what goes away does not come back. It is an unproductive, impoverished area - already without its mineral wealth - and contaminated
A tailor-made legislation (by d. A.)
"Mining laws are beneficial, to the extreme for companies," summarizes from the Network of Communities Affected by Mining, which brings together residents of San Juan, Chubut, Córdoba, Tucumán, Río Negro and Catamarca. Although the original domain of the resources corresponds to the provinces, they (owner of the mineral) cannot collect more than three percent of the international sale price of the metals. But at that three percent the companies deduct the costs of transportation, freight, insurance, milling, marketing, administration, smelting and refining. "The multinationals do not have export withholdings, they must not liquidate foreign currency (the money from their sales to the country does not enter, everything goes abroad), they do not pay taxes on gross income, or on fuels (which everyone pays when they load naphtha), no stamps, no import fees; They deduct double expenses for the purposes of income tax, in the first five years they do not pay national, provincial or municipal taxes. For example, they do not pay income tax or gross income. They do not pay VAT or taxes for the entry of machinery ”, they explain from the Community Network. In addition, they enjoy fiscal stability for 30 years. That is: any modification -–example: check tax, paid by all Argentines, or the 2001 corralito– does not affect them. They euphemistically call it: "reliable mining regime."
The world situation (by A.D.)
Various international specialists assure that it is no coincidence that in first world countries (especially the United States and Europe) metal mining is prohibited or is regulated by such strict controls that companies flee their countries of origin. Starting in the nineties (with new laws in their favor) multinationals began to operate throughout Latin America. Today, the map of Latin America shows, especially the Cordillera de Los Andes, endless points that show how mining projects were reproduced throughout the region, always in the hands of a dozen companies.
Latin America continues to be the first destination for funds destined for world mineral exploration, according to a report by the UN Economic Commission for Latin America and the Caribbean (ECLAC). In 2004, a fifth of international resources allocated to the sector went to the region: 774 million dollars.
Peru was the Latin American country that received the largest contribution of funds for mineral exploration with 196 million; followed by Mexico with 154 million; Brazil with 131, Chile with 109 and Argentina with 53 million.
The report, entitled "Operating conditions and characteristics of the mining industry in Latin America during the 2004-2005 biennium", prepared by Eduardo Chaparro, assures that "this trend shows the interest of companies to open and expand their investment portfolios and to look at countries where there is still much to discover ".