Intag Solidarity Network Newsletter– November 5, 2005
Volume 1, Number 2
News for the North American community in solidarity with Intag. On the web at http://intagsolidarity.org/newsletter.htm
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[1] Ascendant Clears Hurdle to Listing on Toronto Stock Exchange (C. Zorilla update)
[2] International Observer Report: D. Kneas from Garcia Moreno
[3] Reflections on Living in Junin as an International Observer from N. Pacino
[4] Andean leaders driven to take tough line on protesters
[5] June 2006 Delegation to Junin Being Planned
[6] Fundraising Update: ISN Seeks Non-profit Status
[7] Fundraising Update: Sponsors Needed for International Observers for 2006
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[1] Ascendant Clears Hurdle to Listing on Toronto Stock Exchange (C. Zorilla update)
Last week, the British Securities Commission approved the seriously flawed Ascendant Copper Corporation prospectus. This was one of the pre-requisite for the company listing on the Toronto and other Canadian Stock Exchanges. As you recalled, with support from Friends of Earth Canada and Mining Watch Canada, the law firm of HellerEhrman in the US, the Municipality of Cotacachi, and many others, we have be carrying on a campaign to pressure the Commission to have Ascendant list all of the potential and real risks involved with their mining project. While the prospectus now lists pages and pages of the risks of the project, may of which were not mentioned in the original, DECOIN believes the Commission Ok’d the prospectus without forcing the company to address some of the more substantial risks, such as the ongoing Congressional Anti-Corruption Commission’s investigation.
Due to the campaign, the process of approval took four months, instead of the usual few weeks. The Prospectus was approved with several conditions; the main one being that they until January, to privately sell 4 million worth of stock to at least 300 investors. The Prospectus is the document all serious investors look at before buying stock in a business. Experts on Securities issues have told us that, due to the multiple risks involved in the project, they don’t see how it will ever get off the ground. The resistance at the community and local government level, plus the uncertainties of the legality of the mining concessions, are some of the most important obstacles they see as making it impossible for it ever to succeed. As a consequence of the approval, DECOIN is consulting with our allies as to the possibilities of presenting a lawsuit in Canada to stop the listing process.
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[2] International Observer Report: D. Kneas from Garcia Moreno
Some background:
Andrade is former Congressmen from Ecuador who heads-up CODEGAM, which is the county development NGO created and funded by Ascendant. CODEGAM has subsequently been cut-off by Ascendant because of aggressive actions were causing too many problems for Ascendant in its effort to be listed on the Toronto Stock Exchange.
Observations from the meeting in Garcia Moreno:
The meeting in Garcia Moreno on Oct. 29 was supposed to deal with Parish issues like health, education, transportation and a few other general concerns. Mining was intentionally not put on the agenda. This meeting was called in the wake of a series of Asambleas throughout Intag and
Cotacachi County. I was told on Friday (the 28th) that I would be allowed to attend and film the meeting. Polibio had talked personally with Shisela Morales, president of the Parish, about the presence of international observers, which she approved. In the days leading up to the meeting there were rumors that the minnig conflict would come to the fore and that many more people would be there than originally intended. These rumors did not dissapoint.
When we arrived to Garcia Moreno around 8:45am on Saturday, a few other trucks, transporting people from throughout the Parish of Garcia Moreno and other parishes in Intag, were already in the town square and a few others arrived right behind us. Though the total number on Saturday was considerably less than previous meetings in Intag, there was a palpable tension that I had not felt in those other meetings. For one thing, there were around 15 policemen, whereas in the past there may have been only two or three. Polibio immediately found Phil and I and took us to the Coliseo, the large assembly hall in Garcia Moreno. When we entered, along with representatives of Periodico Intag, parish officials were setting up a registration table at the entrance to the Coliseo, with a few policemen behind them. By around 9:30am there was a decent sized crowd outside the Coliseo waiting to get in. Parish officials were registering people one by one, making sure that only those from the Parish of Garcia Moreno were allowed to enter. By around 9:45am some folks in the crowd outside complained about the registration process, stating that everyone should be allowed in. Just after Shisela announced on the loudspeaker that only those from the Parish would be allowed in, a group of about 50 or so barged through the doors, led by Ronald Andrade. As everyone who was outside poored in, the police stood
by watching. The population inside the Coliseo went from around 40 to around 400 in only a few minutes. Shisela again picked up the microphone and announced that only those from the Parish would be allowed to stay and everyone else had to live. Ronald Andrade then shout back, with a few hoops and hollars from those around him, “What about the Gringos!?, What are the Gringos doing here!!!”
“The Gringos are International Observors of Human Rights,” responded Shisela on the loundspeaker. During this interchange Phil and I were standing on a bench in a front corner of the room, filming and in sight of everyone. We decided to sit down. What ensued over the next 30 minutes was somewhat chaotic and confusing. A group gathered in the front of the room, around Shisela, to discuss what was going on. I could hear Andrade s voice giving Shisela a hard time, mentioning again the presence of the “Gringos”. Shisela responded on the microphone that only those from the Parish would be allowed to stay. She then called for a meeting with the community presidents on the front stage. Not long after they gathered there, Andrade climbed the stage and put himself in the middle of it. During this time most of the crowd was quiet, with occassional shouts in favor of each side. A few people called for the meeting to be suspended.
Not long after the group gathered on the stage, Shisela took the microphone and announced that the meeting was suspended, because its security could not be garunteed. Shisela also mentioned that CODEGAM could continue with its meeting, but not in the Coliseo. At this point a few women from Junin, who hovered over Phil and I once Andrade entered the Coliseo, grabbed us and took us out and down the street to the Plaza of Garcia Moreno. For the most part, most of the people in the Colsieo stayed there. After waiting about 10 minutes I returned with Julio and
entered the Coliseo as Andrade stood on one part of the stage and yelled that the ultimate authority of the Parish is the people, and do the people want the meeting to go on. A few lound gritos of support followed. At that point Shisela grabbed the microphone and said the authority to call and suspend Parish meetings belonged to the President, “and this meeting is over.” Shisela then left the Coliseo followed by most of the non-Codegam population.
Andrade then held a CODEGAM meeting in the Coliseo, as everyone else was down in the Plaza eating lunch. From what I gathered talking to a few folks over lunch Andrade had a few interests in interrupting and attempting to take over the meeting. 1) Many people in the region are upset with the company, including CODEGAM, who lost much of their funding. According to a few folks I talked to, Andrade wanted to use the meeting as a forum against the company, but with himself as the leader. At which point he could approach the company and say, “look, I’ve got this support behind me, now pay up.” 2) I was also told that Ascendant might audit CODEGAM, to find out where all of its money has gone. Andrade might have wanted to “hijack” the opposition to avoid this audit.
At around 12 or 1pm, we left back to Junin. On the whole everyone seemed fairly befuddled at the whole event. The language of the debate was not one of mining versus ecologistas, but rather one of the norms of the Parish assembly. I was also told that many of the people Andrade brought to support him were not from Garcia Moreno, but rather gathered from other Parishes in Intag and also brought over from Pichincha. The only person from the mining company present, was a young man who was filming the precedings, something Andrade must have known.
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[3] Reflections on living In Junin as an International Observer from N. Pacino
September 12, 2005
I consider my time in Junin to have been pretty special, in part due to the experience of assisting a localized, community struggle against an international mining corporation, but mostly for the impact it had on me personally. In the short time that I lived in Junin (3 weeks to 1 month) I developed a network of friends and family that taught me a considerable amount about how to live your life while struggling for the basic freedom of autonomy. The dedication, knowledge and commitment that the residents of Junin demonstrate with regard to their situation is second only to the joy and camaraderie which they share. To me, life in Junin is the very embodiment of “community”.
The ecological reserve of Junin sits on a large copper deposit that an international corporation (Ascendant Copper Corporation, based in Vancouver, Canada) wishes to exploit. The answer from Junin has echoed a resounding “NO” to the company. The residents of Junin have a vast understanding of the ways in which mining will affect their community, livelihoods, and environment, and have organized very effectively against the intrusions of the corporation. Over the last several years, there were numerous confrontations between community members and employees of the mining company, which led to the development of the International Observer Program. In the 7 or 8 months that observers have lived in Junin, the dynamics of the conflict changed dramatically. People from the company very rarely come into direct confrontation with Junin residents anymore; they prefer to use low-intensity techniques like propaganda, bribery, and the purchase of land to further their cause. During my time in Junin, the miners illegally entered the reserve no less than 4 times through neighboring communities, and each time under cover of night. The people of Junin are organizing a “patrol” to guard the reserve at night, but there is apprehension that this will result in a violent confrontation. The primary rumor in Junin is that the company is purchasing surrounding lands in order to construct a highway into the reserve that will bypass Junin altogether.
Life is very simple in Junin, much less so than here in California, and I will miss being there incredibly. The trust and confidence we established together will not be forgotten, and my reflection on the experience has only begun.
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[4] Andean leaders driven to take tough line on protesters
Reprinted from London Financial Times (under fair use)
By Hal Weitzman
Published: September 16, 2005
The front cover of a recent issue of Caretas, Peru’s top political magazine, bore a mock photo of Pedro Pablo Kuczynski, the country’s flute-playing prime minister. Mr Kuczynski, a former investment banker, was pictured wearing a riot helmet and flak jacket. Instead of a flute, he held a truncheon.
The new premier will not be unhappy with the image. In a statement to Congress at the end of last month outlining his agenda, Mr Kuczynski prioritised security measures, including police reform and the full use of “all legal mechanisms” to protect public order.
The Peruvian administration’s new attitude follows months of complaints from business groups that violent demonstrations in the provinces - often directed against foreign investors - are going unchallenged and that the state has been slow to react. But it is also part of a wider trend in the Andean region, as governments show signs of becoming fed up with rising social unrest.
In Ecuador last month the government called a state of emergency and sent in the armed forces to occupy two Amazonian provinces after demonstrators attacked oil installations. In Bolivia President Eduardo Rodríguez issued an executive order in July that could be used to deploy troops around gas fields to prevent them being occupied, as they were in June during demonstrations that led to the toppling of his predecessor, Carlos Mesa.
There are signs of a changing mood elsewhere in South America. Néstor Kirchner, Argentina’s president, last month ordered police to stop groups of unemployed protesters from blocking roads into Buenos Aires, the first time he had done so since taking office in 2003.
If it holds, the tougher line will be welcomed by those who have criticised Andean governments for failing to enforce their own public order laws. In the past few years the politics of the region has generally followed a familiar pattern: street protests have usually resulted in governments caving in to demands or presidents stepping down. As a result the region has developed a reputation for weak government and instability.
Lourdes Flores Nano, head of Peru’s Popular Christian party and the current front-runner in the presidential race, says the government’s attitude to social conflict had fallen into a familiar pattern. “The strategy has been to set up a commission and reach agreement with the protesters by giving them whatever they want. That sends the wrong message completely. We have to learn how to say ‘No’.”
The belief that Andean governments may buckle in the face of protests has led to foreign investment in Bolivia’s gas industry and Ecuador’s oil sector effectively being frozen this year.
Peru’s mining sector is still seen as attractive to foreign groups but companies have to include a “protest premium” in their plans. Several high-profile international investors have been targeted by protesters in the past year, including BHP Billiton, the world’s biggest mining company, Newmont, the US gold miner, and Monterrico Metals, a UK resource development company. All have been forced to suspend operations or withdraw from projects.
Many observers applauded Ecuador’s firm response to the oil protests, a policy that enabled the country to resume oil production much faster than had been expected. Similarly, Mr Kuczynski’s proposals, which are also intended to improve personal security and combat drug trafficking, have been supported in Peru.
Walter Spurrier, of the Universidad Casa Grande in Guayaquil, says the way Ecuador’s oil crisis was handled marked a change in policy.
But a strategy to identify and prevent problems before they boil over into debilitating protests apparently remains beyond Andean governments, whose public security policies are generally more of the fire-fighting variety. Last week Mauricio Gandara, Ecuador’s interior minister, was forced out for not acting decisively enough against the protests. Moreover, the new stand is likely to be severely tested in the coming months. Most analysts expect that social unrest will increase as elections approach: Bolivia is electing a new president and Congress in December, Peru in April and Ecuador in October 2006.
Meanwhile, governments may be caught between their desire to improve public order and their reluctance to be too confrontational. The administration of Alejandro Toledo in Peru is deeply unpopular, in Ecuador President Alfredo Palacio’s approval ratings are falling fast and Bolivia’s interim government is keen to avoid tension before handing over to the next elected administration in January.
Last week Mr Palacio tried to prop up his diminishing popularity by saying existing contracts with foreign investors in the oil sector were “unfair” and should be altered to give the state a greater share of revenues.
Miguel Palací of Conacami, a Peruvian group representing communities affected by mining projects, says the state needs to look at why confrontations occur. “Until the government creates an institution for complaints to be heard, social unrest will continue.”
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[5] Summer Delegation to Junin Being Planned
Planning is now underway for a June 2006 observation delegation to Junin. Participants will have the opportunity to talk first hand with local activists engaged in the struggle over self-determination of their community. Additionally, participants will participate in local projects, such as continuing work begun by International Observers mapping the community reserve and helping to develop the community technology program.
The delegation schedule will be planned jointly with all participants. For more information or to inquire about joining the delegation, contact Glen Kuecker (gkuecker@depauw.edu).
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[6] Fundraising Update: ISN Seeks Non-profit Status
Steering members of the Intag Solidarity Network—after negotiations with DePauw—have decided to seek non-profit status under the U.S. Internal Revenue Service independent from the university for ISN. The steering committee feels independent non-profit status will better enable ISN to work with established non-governmental organizations and other non-profits.
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[7] Fundraising Update: Sponsors Needed for International Observers for 2006
More support is needed to help fund the next team of Observers, Charles Carlin and Rebecca Heaton, who have committed to serving from February 2006 to February 2007. Jake Gross is coordinating an effort to find eight (8) families that can commit to $50 per month for 12 months to support Charlie and Becca. In total, this $400 per month will fully cover Charlie and Becca’s costs. Currently, seven (7) more families are needed. The goal is to have eight families/donors committed before December 15.
If you are able and interested to help, contact Jake Gross (jake@intagsolidarity.org).
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USEFUL LINKS TO STAY INFORMED
Intag Solidarity Network [http://intagsolidarity.org]
Intag Newspaper [http://www.intagnewspaper.org/]
DECOIN [http://www.decoin.org/]
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TO CONTRIBUTE
Members of the ISN community are anyone in solidarity with the struggle in Intag are encouraged to use this newsletter as a forum to share important information. To submit an article, an update, or just a quick note simply e-mail the text to intagsol@intagsolidarity.org.
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TO SUBSCRIBE OR UNSUBSCRIBE e-mail intagsol@intagsolidarity.org.
This is an official communication from the Intag Solidarity Network for members of the North American community in solidarity with the region of Intag. All content is produced by members of this community.
Copyright, 2005. Please credit Intag Solidarity Network and when possible specific authors if using information from this newsletter.
