| IFC has received a number of communications concerning Glamis Gold Ltd.'s Montana Exploradora/Marlin project in Guatemala, for which the International Finance Corporation (IFC), the private sector arm of the World Bank Group, has provided a $45 million loan. We believe that this is a project that can be operated in a responsible way to help reduce poverty in the region and improve peoples’ lives. We would ask everyone concerned with the plight of the Guatemalan people in this impoverished region to consider objectively the facts and the reality of the situation. The project has already brought tangible benefits to the local community, some of which are outlined below. On December 3, 2004, a truck carrying mining equipment was blocked on the Pan American Highway, 170 kilometers from the Marlin mine, in the Department of Solola. Throughout the following 40-day blockade, the World Bank Group was in frequent contact with the company and the government as concerted efforts were being made to find a peaceful resolution. Unfortunately, violence erupted. The World Bank Group deplores violence. The events of January 11 deeply concern us, and we empathize with those tragically affected. The Bank Group will be carefully following the investigations into the one fatality and other injuries that occurred. The World Bank Group remains committed to its objectives of ensuring that the project meets the appropriate environmental and social guidelines and that the project makes a meaningful contribution to long-term poverty alleviation in the region. The company shares these objectives. In addition to providing financing, IFC is assisting in the effective planning and implementation of Montana Exploradora’s environmental and social programs by working closely with the company, NGOs, local municipalities, and the community. IFC is also helping Montana by facilitating community partnerships and identifying and developing potential links with small and medium enterprises, thus creating jobs and enhancing the positive impact on the local economy. |
Context The Marlin mine is being built in a sparsely populated rural area. Individuals own their agricultural land from which they are usually able to derive only a subsistence living. The responsible extraction of mineral resources is one of the few ways that local indigenous people can hope to break the cycle of poverty. The nearby municipalities of San Miguel Ixtahuacan and Sipacapa are among those that could most benefit from development in Guatemala. Prior to construction of the mine, many of the indigenous residents migrated to the coast during the harvest season to work on sugar cane and coffee plantations. This was very disruptive to families, especially to the schooling of their children. Since construction of the mine started, this migration from the area to the coast has virtually stopped, with a considerable benefit to the local people. The area around the mine is now enjoying economic development and growth as a result of the 800 jobs that have been created for local people and the significant expenditures the company is making for the mine as well as for social projects. The mine is one way to drive sustainable development in this area. Social Development Projects The company has made significant expenditures on social projects, including the hiring of school teachers, construction of churches, and rehabilitation of clinics. Some of the company’s expenditures for infrastructure, including some roads and bridges, were specifically requested by the local communities and are not essential to operation of the mine. Marlin has invested over Q10 million ($1.3 million) to date in social and environmental programs that directly benefit the communities close to the mine, including: - Installing chlorinators in the municipal water systems of San Miguel Ixtahuacán and Sipacapa.
- Transplanting or donating to the community over 105,000 saplings to the reforestation areas in the Marlin project and surrounding areas, with more than 100 hectares of reforestation carried out in 2004.
- Supporting construction of a medical clinic, with 24-hour service for the community (Marlin has purchased and equipped an ambulance, and helicopter rescue service is available).
- Collaborating with Banco de Desarrollo Rural to establish the first branch of a bank in San Miguel Ixtahuacán to provide services and financing to small and medium enterprises.
- Funding the hiring of 11 teachers for seven schools in nearby communities, for repairs to school facilities for these and other schools in the area, and for books and materials during the past school year.
- Building much-needed infrastructure to facilitate communications, transport, and trade between towns, including a road from La Hamaca to Salitre, a road from San José Nueva Esperanza to Sipacapa, and a bridge that will benefit 12 communities from San Marcos and Huehuetenango.
- Equipping rural first aid kits (botiquines rurales).
The company also established a foundation, Fundación Sierra Madre, with assistance from Citizen’s Development Corps, a Washington-based nongovernmental organization, to plan and implement sustainable, community-based development and capacity building programs in the local municipalities. To date, the foundation has - Provided health services to more than 1,200 people during five company-sponsored Health Fairs;
- Established 16 communal banks, with 308 local women participating;
- Trained more than 250 people trained in vocational skills such as carpentry, sewing, cooking, and bread-making;
- Employed 50 people in local reforestation projects;
- Trained 118 midwives on maternal health topics; and
- Hired a doctor to staff the health clinic in Sipacapa.
IFC’s Corporate Citizenship Facility is providing funding to the Fundación Sierra Madre to develop a program to establish community-managed nurseries that will supply the mine's reforestation needs. Attached you will find a link to the foundation’s most recent newsletter, which describes some of their work, including the program promoting indigenous women entrepreneurs. In sum, the World Bank Group believes that the company has been a good corporate citizen. Environmental and Social Impact Assessment Marlin is a Category A project according to IFC’s Procedure for the Environment and Social Review of Projects. IFC’s environmental review concluded that the project complies with applicable World Bank Group policies and guidelines. Environmental and health and safety issues reviewed during appraisal included the following: management of wastewater, air emissions, and wastes; management of hazardous materials, including cyanide; management of tailings, including cyanide detoxification and dam safety; international waterways; mine closure; occupational health and safety; and emergency preparedness and response. Social issues include the presence of indigenous people in the area surrounding the mine, as well as land acquisition. The company adequately addressed these issues in its Environmental and Social Impact Assessment and supporting documentation, and it is taking appropriate measures to deal with them. The company has also demonstrated the necessary capacity and intention to comply with IFC requirements. The company prepared an Indigenous Peoples Development Plan to ensure that indigenous peoples share in project benefits through the following initiatives: local hiring; local capacity building and infrastructure improvements; projects to promote sustainable development in the area; and reforestation and sustainable forestry. Consultation The affected local communities have been appropriately and extensively consulted as detailed in the Marlin project documents: “Land Acquisition Procedures,” “Public Consultation and Disclosure Plan,” “Executive Summary of the Environmental and Social Impact Assessment (ESIA),” Section 3-7, and “Programa de Información y Participación Pública” of the ESIA. These documents have been publicly available for a considerable period of time. (Click here for environmental documents, here for project documents.) The consultations were carried out under the supervision of the national government and with the participation of the local governments. Marlin’s mining license (dated November 27, 2003) meets all legal requirements under Guatemalan law, including consultation and public disclosure requirements. The availability of project documents was announced in the newspaper “Nuestro Diario” (in Spanish and in Mam) and through a local radio station, “Radio Creativa” (also in Spanish and Mam). In addition, the Executive Summary of the ESIA was translated to Mam, recorded on an audio CD, and provided to the local communities. Marlin’s mining license was approved by Guatemala’s Department of Mining Rights, the Department of Mining Control, the Department of Legal Advisory Services, the Office of the Attorney General, and the Ministry of the Environment and Natural Resources. The environment ministry reviewed the consultation activities that were carried out as part of the preparation of the ESIA and considered them adequate. No major objections to the project were raised during the consultations that preceded the granting of the mining license. The Public Disclosure and Consultation Plan demonstrates that indigenous communities affected were adequately consulted and that people were provided with ample opportunities to express their views and concerns. Information gathered during the consultation meetings showed that the local communities and their leaders supported the project. Before exploration was conducted, the consent of the landowners and approval of local representatives was required. The land for the mine was acquired by a willing buyer/willing seller procedure, which itself is concrete evidence of consultation and consent. IFC staff have made numerous visits to the area of the mine to meet with local people and their elected officials. There remains substantial local support for the project, although there is also opposition, particularly in the village of Sipacapa (located about 10 kilometers from the mine). We are working to find specific ways to address legitimate concerns as well as frame discussions within the rule of law. The World Bank Group is aware of some opposition to the mine, and we believe that through ongoing discussion and consultation, the concerns of affected communities can be addressed. However, it is clear that some of this opposition is being promoted by groups opposed to any mining. We are aware of rumors being spread that give misleading views of the effects of the Marlin mine on local communities and the environment. The company remains open to engage with any community groups who wish to promote the appropriate development that benefits local people. But the Bank Group deplores tactics that appear solely intended to disrupt the project.. Ongoing Support from the World Bank Group The World Bank Group has been a strong and active supporter of further dialogue among the local communities, the government, and the company. This was the very reason the World Bank Group was a sponsor of the recent successful National Forum on Mining in Guatemala City, where a diverse range of speakers presented their views. The World Bank Group is supporting the planning for similar conferences to be held over the next few months in San Marcos and El Estor. These conferences will be open to all interested parties, thus demonstrating the interest of the World Bank Group to include all voices in a constructive debate. In addition, and critical to the peaceful economic and social development of Guatemala, the World Bank Group is actively working with the government, civil society, and the company to establish a mining dispute prevention and resolution system as well as systems to ensure community participation in independent monitoring of the project. The preparatory work on this has been ongoing for several months. To sum up, we believe that the company has been a good corporate citizen and that the project has already brought tangible benefits to the local community. The project can be operated in a responsible way to help reduce poverty and improve peoples’ lives in this impoverished region. |
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