ISN Denouncement of Ascendant Copper in Intag region, Ecuador
12th June 2006
Report of the Intag Solidarity Network
Denouncing the Activities of
Ascendant Copper in Intag region, Ecuador
This report is free for public circulation.
At the request of the community of Junín, Intag Solidarity Network has maintained an international human rights observer program in Intag region. We have been present there Since February 2005. We are recognized and endorsed by Alexis Ponce, director of Asembelia Permanente de Derechos Humanos, as well as Pablo de la Vega, director of Centro de Documentación en Derechos Humanos “Segundo Montes Mozo S. J.” The program monitors the activities of Ascendant Copper. The observers have a keen understanding of local dynamics, community sentiment, as well as the negative impact caused by Ascendant Copper´s presnece. This denouncement and statement of concern is the product of our being present in the region on a daily basis for more than a year.
Here is a quick summary of our denouncement against Ascendant.
1. The company uses death threats against those who oppose mining.
2. Ascendant has paramilitarized sections of Intag region.
3. It employs armed guards who do not have open forms of identification when operating in public spaces such as roads and community plazas.
4. The company provokes divisions and conflicts within otherwise peaceful communities.
5. The company offends campesino values and ways of life.
6. Ascendant misrepresents local realities and company activities through misleading and often untruthful public statements.
7. It manipulates resource scarcity within communities as well as regional poverty; it offers services in exchange for declarations of support for the company.
8. Ascendant utilizes strategies best characterized as low intensity conflict as part of its campaign to eliminate opposition.
9. The company targets children in its propaganda and “socialization” campaign.
10. It trespasses on community property, especially in Junín, despite the presence of signs explicitly stating miners are not welcome.
11. The company is subverting ecologically sustainable development projects pursued by community members, and targets those who organize them.
12. It sends spies into Junín, people who gain entrance to the community by using false identities.
13. Ascendant shows a lack of respect for local and regional governing processes, and works to undermine the authority of democratically elected officials.
14. It fails to honour the Canton of Cotacachi´s ecological ordinance.
15. The company violates several provisions of the Ecuadorian constitution.
16. It fails to conduct its affairs in a transparent and honest fashion.
17. The company attacks the integrity of foreigners working and living in Intag region.
18. The company requires its workers to attend meetings and rallies that attack its opposition.
19. The company seeks to provoke conflict and violence in the region as a means to defeat the resistance.
20. Ascendant refuses to honor the demand of communities that it should leave Intag immediately.
The logic for understanding the problem is simple.
1. The communities of Intag region are firmly against mining, and have consistently and persistently stated so in an open, transparent, and public fashion. Communities like Junín have been in resistance to mining projects since the early 1990s. In 1997 they defeated Mitsubishi Corporation (Bishi Metals). They have stated to Ascendant Copper, multiple times, that they do not want mining.
2. Ascendant Copper is a minor, if not insignificant, mining company. They lack financial resources, technological expertise, experience, and, most importantly, an understanding of Ecuador. The company is not competent to accomplish building an open-pit mine on the scale as proposed for Junín. Actually building the mine is not their game. Instead, they are speculators. Ascendant Copper seeks to make their fortune by preparing Intag for mining (socializing) and securing concessions. They hope to sale this package to one of the major mining companies.
3. Ascendant Copper knows full well that no major mining company will purchase their concession as long as communities like Junín are organized in resistance to mining. Resistance makes their “product” –an Intag willing to have mining– worthless.
4. In order to succeed in speculation, Ascendant Copper has to eliminate the resistance to mining in Intag region. Hence, the company constitutes a real threat to the well being and physical security of community members.
5. Steadfast resistance to mining also means that Ascendant Copper´s plans for Intag region are delayed, significantly so. Delay means a drain on the company´s limited financial resources, and a lack of investor confidence (assuming that the company ever enjoyed any investor confidence).
6. As resistance persists and company resources decline, Ascendant Copper´s action appears to be increasingly desperate and dangerous.
Given this logic, please take into consideration some of the following facts.
1. Mr. Gary Davis, the American CEO of Ascendant, is on record as stating that Ascendant Copper will ¨respect the wishes of the communities.¨ He has stated that if the communities do not want mining, Ascendant will leave. The communities of Intag have stated multiple times they do not want mining and want Ascendant to leave. This statement was most recently made on May 20, 2006, when 7 Parish government presidents, the legitimately constituted authorities of Intag region, demanded that Ascendant leave Intag immediately (See Appendix One).
2. Mr. Gary Davis is on record as stating that his job as CEO is to look out for the interests of the community of Intag. He was asked, however, if that responsibility conflicted with his fiduciary responsibilities to the company`s shareholders. He confirmed that shareholder interest was in fact superior to the interests of Intag communities. (March 2006 meeting with Gary Davis at his office by members of Intag Solidarity Network—USA).
In addition to disrespecting community demands for the company to leave, Ascendant Copper has undertaken an aggressive campaign against people who oppose mining.
Consider some of the following facts about the guards contracted by Ascendant.
1. These guards provide no form of open identification. If someone were in the need to complain against the action of a guard, there is no means for identifying them. Lack of effective identification means the guards may feel at liberty to act with impunity.
2. The guards wear black jackets with the letters “GOSEIP” on the back. We assume “GOSEIP” is the name of the guard company. There is no information about how to contact the company, how to file a complaint with the company, nor how to hold guards accountable for their actions. There is no mechanism for holding this company accountable.
3. The guards patrol the public roads of the region, especially between Chalgoyalco Bajo and Villadorada. Such patrols are the responsibility of the local, provincial, and federal government, not a private police force.
4. Guards patrol the roads by riding motobikes, most often in pairs. We have seen guards riding as the passenger openly carrying weapons, including shotguns pointed toward the roadside. Our experience working as human rights observers in Colombia warns us that paramilitaries carry out their assassinations by this method (drive by a house and open fire, indiscriminately). It is a direct form of intimidation, one that creates an atmosphere of fear within the community.
5. Armed guards have also been seen walking the public roads. In one case, on June 5, two guards were seen by observers walking with a person dressed in civilian clothing. This person was wearing dark sun glasses, and carried a shotgun slung over his shoulder. Again, our experience in Colombia advises us to denounce that such a patrol, especially with the civilian present, is a paramilitary tactic and not the legitimate actions of a private security force.
6. Guards frequently undertake intimidating measures at the homes of key community members. In the case of Polivio Perez, for example, guards on motobike do loops in front of the house, especially when Mr. Perez is away from home and his wife Sonia is alone with their 5 young children. We have direct testimony of Mrs. Perez about her feeling of insecurity, especially when the guards on motobike pass her house with guns.
The Intag Solidarity Network fully recognizes the right of Ascendant Copper to defend its legitimate property rights in Ecuador (virtually all of the company´s property claims are contested in courts right now, the company does not have secure title to property they claim). We insist, however, that when guards leave the private property of the company and are in public domain, they are not acting as guards but as a paramilitary unit, especially if the guards have no identification or if armed people dressed as civilians are involved.
Ascendant`s paramilitarization of Intag region is part of a larger campaign to eliminate the resistance. It is best defined as low intensity conflict. Tactics of fear and intimidation are central to this strategy. Obviously, armed men patrolling roads is designed to intimidate people, to create an atmosphere of fear and uncertainty. The company`s low intensity conflict, however, also includes the use of threats against community members. A few examples will suffice.
1. The president of the ecotourism committee of Junín reports receiving death threats.
2. The 13 year old nephew of Junín´s ecotourism committee president told the observers that he has received death threats.
3. Polivio Perez is a regular target of death threats.
4. The president of the ecotourism committee of Junín has received multiple threats that the “miners” (local term for those who support Ascendant) are going to burn down Junín`s ecotourism cabana. We note with concern that a family with 3 children lives at the Cabana complex.
5. Recently, the president of the community of Peñaherrera recently received a death threat. He denounced this threat in a public fashion in May.
6. The President of the regional coffee grower`s association (ACRII) has also received death threats. These were denounced by the association in a letter to Gary Davis. No reply was ever offered.
7. Carlos Zorrilla, a local member of the grassroots organization DECOIN consistently receives death threats. He recently received news from a second party that four people driving a brand-new pick-up truck, of the type Daimiservices (Ascendant contractor) is fond of using, were planning to go to Carlos Zorrilla´s house to kill him. This threat happened just before the May 20 anti-mining rally in Garcia Moreno. He also received a phone death threat in December 2005, which he denounced to the police.
A core strategy of Ascendant Copper in its low intensity conflict campaign is to create community division as well as exploit those that already exist. This objective is accomplished by several measures.
1. The company attempts to buy out community members by offering lump-sum payments for individuals to abandon the resistance. Polivio Perez, for example, is on record stating the company offered him $100,000 to leave the country.
2. “Miners” spread rumours and disinformation about community members, creating an atmosphere of distrust. As these communities receive and distribute information and news orally, those gifted at the art of “chisme” can do considerable damage.
3. Ascendant attempts to buy land of community members, offering prices well above market price. In communities like Junín, selling property to the company is an extreme act of betrayal to the community´s agrarian value system, and often leads to deep arguments between community members, and often results in the seller being expelled from the community. In one example, the former community president, Cesar Calvachi, negotiated with the company to sell his property. He has stated in public that he did not sell because the company failed to deliver upon the agreed price. Nonetheless, Cesar was removed from his position as community president and effectively banned from the community. This transpired during the summer and fall of 2005.
4. The company creates community division by manipulating resource scarcity. In the community of Barcelona, for example, Ascendant has offered to provide schools with computers. This offer has stimulated sharp divisions about acceptance of the equipment, with parents arguing over the merits, as well as a vigorous conflict between the community president and the school teacher. (For documented examples of company efforts to entice communities through offering services and goods, see Appendix Two).
5. Ascendant exploits existing divisions in communities by purchasing community members who may have grievances with other community members. In Junín, for example, a community member known as Don Bolivar, was enticed to work for the company as a driver. Don Bolivar is one of two community members who owns a truck, which provides something of a local collective taxi service. Previously ardently against mining, Don Bolivar explains his working for the company by asserting he was not receiving enough of the community´s business. We note that his “betrayal” has caused considerable consternation within the community, as well as anger against the company and Don Bolivar.
The key point in these examples is that Ascendant Copper´s efforts at fomenting community divisions prevents the normal mechanisms of community conflict resolution from functioning. We find this reality to be especially dangerous. As any Latin American sociologist will inform, disruptions of internal conflict resolution mechanisms, especially by outside forces of “modernization” or “development,” create highly explosive situations. It is clear that Ascendant seeks to rip communities apart in its strategy to defeat the resistance. This has the potential to cause violent conflict within communities and the region, which further advances Ascendant´s strategy of causing fear and intimidation among the population. As we know from Colombia, internal community conflict is a driving force to the larger structures of normalized violence, and a key factor stimulating conditions for paramilitarization. We warn that a very dangerous situation is arising– community conflict may converge with Ascendant´s paramilitarization of the region, resulting in a Colombianization of Intag region. Once this process starts, a vicious conflict cycle may result, one that could be very hard to stop. If this scenario happens, a Canadian corporation is responsible for having caused it.
Closely connected to Ascendant Copper´s low intensity conflict campaign is its program of “socializing” the region for mining. Winning the “hearts and minds” of local residents is the key objective. Socializing aims to make the presence of the mining company, its discourse, and its agenda “normal” or hegemonic in Intag region. This objective requires a major paradigm shift, essentially destroying an agrarian world view, one that has developed significant features of an ecologist paradigm. Re-programming the way people think requires Ascendant to fight a propaganda war, which it has contracted out to Daimiservices S.A. (The activities of Daimiservices has been denounced by the Alcalde of Cotacachi, see Appendix Three). The socializing campaign has multiple faces.
1. The propaganda campaign works closely with the Catholic priest in Garcia Moreno. Religion is merged with mining. Everyone in the region knows the priest is pro-mining, especially because the priest is known by locals to allow the company to use Church property for its projects.
2. The campaign also involves school teachers at the colegio in Garcia Moreno. A public school using public resources finds it teachers preaching pro-miming positions to the students. The intensity of peer pressure for a 12, 13, 14 year old person clearly violates basic rights to education free of indoctrination from teachers doing the bidding of a foreign mining company. Parents of these children have told observers of their meetings with the teachers as well as denouncements to state officials.
3. Ascendant Copper shamelessly manipulates the region´s poverty and its love for football. It sponsors football clubs, and distributes jerseys to participating children. The green jerseys sport Ascendant´s name on the front, making it 100% clear that it is the company bringing organized football to Intag. During practice, on truck rides and at games, coaches indoctrinate kids to the world view of mining. When three truck loads of young kids drives through the region, all wearing their Ascendant jerseys, the message to everyone is very clear: Mining makes your kids happy. Of course, the jerseys don´t carry a picture of ecological destruction caused by large-scale open-pit mining, nor do the coaches talk with the children about the long term consequences of mining for their lives.
4. Socialization also means offering jobs to local people. These jobs carry the appearance of a public works project. Gangs of Ascendant labor can be seen doing small road repairs, mostly with shovels and picks, which are often undone with the first mild rain. Many of these workers labor on the Ascendant “farm.” They clear fields in gang labor formation, often in lines of 20-30 people. Everyone is required to wear yellow rubber boats as well as yellow hard-hats. The result is group identity, as well as an open statement to all that they are Ascendant workers. No question, there is nothing illegal with these practices, and Ascendant is certainly entitled to employee them. The point, however, is that the work is designed to make labor for the company normal and routine. It re-works campesino mentality about labor by fostering time-discipline, as well as respect for hierarchy. More significantly, the plan is to have locals labor in what appears to be innocent work, so that people frame mining as a non-threatening proposition, something that involves infrastructure development (if we can call it that) and agricultural labor, as against environmentally destructive resource extraction.
5. Also, socialization involves offering basic services to people. The offer, however, comes with a huge catch. One has to agree to support mining, attend pro-mining meetings, sign blank sheets of paper (used by the company to claim regional support for its presence), or help spread disinformation about the anti-mining position. Again, this strategy is a shameless manipulation of poverty. Offering medical services under these terms and conditions is an insult to humanity. (See Appendix Two for testimony about services).
Ascendant Copper´s low intensity conflict against the resistance also applies a propaganda campaign defined by misrepresentations, if not deliberate lies.
1. Many of the company´s deceptions were raised last year when Ascendant sought listing on the Toronto Stock Exchange. Extensive documentation of the company´s misrepresentations was presented, and Ascendant was allowed to revise its application to address the concerns. Those fighting to block the company´s listing were not afforded an equal opportunity to rebut its revised prospectus. We only learned of the approval after the fact. Like cancer, the company is undermining the legitimacy and accountability that capitalism depends upon.
2. Typical of the misrepresentations generated by Ascendant is a map of Intag region recently distributed in the area. It is a propaganda pamphlet, one that pretends to show all of the projects accomplished by Ascendant throughout the region. Observers have recently visited the communities of Cerro Pelado, Barcelona, and Triunfo, all laying within ground zero of the proposed mine. Triunfo did not even exist on the map, probably because this town of at least 150 people lies within the claimed concession of Ascendant. In Cerro Pelado and Barcelona, community presidents clearly indicated that projects and services listed on the map do not exist or had been firmly rejected by the community. The map would lead the public to believe that the company has realized extensive development projects. Unless someone actually travels to these communities and verifies the reality, nobody would know that Ascendant is grossly misrepresenting reality. These untruths serve to undermine the legitimacy of the resistance, representing them as anti modern discontents irrationally determined to prevent Ascendant from bring the benefits of development, which Gary Davis claims would include bringing Wendys and McDonalds to Intag. (See Appendix Two for observer report on the map).
3. Similar to the map´s untruths about development projects is the company´s boldly incorrect claim that the concession area is not primary forest. Likewise, they wrongly claim that log trucks rumble down roads from the Junín area loaded with freshly cut timber. The observers confirm that they have never seen such log trucks. In these instances, Ascendant is either ignorant of the ecology that they claim to protect, or they are flat out lying. We can add to this record of distortions the company´s absurd claim that the proposed open pit mine would cause minimal environmental damage as well as their claim that assessments of the probable damage are overdrawn. Gary Davis´ public statements that anti-mining claims about the environmental impact are overdrawn are contradicted by the company´s own environmental impact study, as well as the one conducted by Bishi Metals in the 1990s.
4. Ascendant´s misinformation campaign targets foreigners resident in Intag region. In all cases, the individuals attacked by Ascendant are outstanding citizens of region, having provided extensive contributions to the well being of the region, such as the formation of the first regional newspaper, watershed projects, forest protection programs, and endangered species protection projects. Perhaps most ridiculous of Ascendant´s assaults has been upon Dennis Laporte, a French citizen with a long record of community development projects. We invite you to consult with the Spanish and French embassies in Quito about the direct threats and physical attacks Dennis received by miners last summer. Ascendant claims that the resistance to mining is the work of these foreigners. It has gone so far as to use falsified military intelligence records against these individuals as part of their smear campaign. This argument is profoundly insulting to dignity of people from communities like Junín. They simply do not need foreigners to be present in order for them to know that the proposed mine would displace their community, obliterating their homes in a huge pile of mining waste. While attacking these foreigners, Ascendant never explains how and why it is permissible for them to operate in Intag region if foreigners should not be present. Let´s keep in mind that the company is a Canadian company with a short, uninvited, and hotly contested existence in Ecuador.
The company´s troubled relationship with the truth has become a major cause of concern for the Ecuadorian government as evidenced by recent denunciations by the Alcalde of Cotacatchi province, Auki Tituani, as well as the Ministry of Energy and Mines. In a letter to Gary Davis, on June 9, the Ministry of Energy and Mines stated, “The Ministry of Energy and Mines, concerned with the escalation of conflicts in the areas of Golden 1 and Golden 2, take no responsibility for the social problems caused by the activities carried out by your company in the Intag Zone.” The letter concludes by stating that Ascendant does not have the right to proceed with its operations, which currently places the company squarely in contradiction of Ecuadorian law. (See Appendix 4). The alcalde is quoted by La Hora as having a conversation with the Canadian Ambassador in which he called Ascendant an ¨White Elephant¨, one that has violated the constitution of Ecuador. On June 6, the Alcalde wrote a 4 page denunciation of Ascendant and Daimiservices. The letter explicitly suspends any and all relationships between the Canton of Cotacachi and the company. It also charges Ascendant with violations of the Ecuadorian Constitution (see Appendix 3). When placed in the context of Occidental Petroleum´s recent expulsion from Ecuador, as well as the leftward shift in Latin American politics, Ascendant Copper´s many misdeeds should be a major cause of concern for the Canadian government, legitimate Canadian businesses in Ecuador, as well as the investing public. One very bad, rotten apple can ruin the harvest for all.
The company has publicly stated that the resistance to mining in Intag is the equivalent to Islamic fundamentalism. Given the current global war on terrorism, and the green light it has given for some to subvert civilized sanctions against violations of human rights and constitutionally guaranteed protections of individual liberty, we are greatly troubled by the facility with which the leaders of Ascendant Copper slap the Islamic fundamentalist label on the resistance. In a similar tone, the company calls the resistance ¨eco-terrorism.¨ This language aims to defame a grassroots movement that has been in existence for 15 years. It aims to justify their tactics of low intensity conflict. It aims to shift the terms of debate about mining away from the actions and intent of Ascendant Copper. Their use of the rhetoric of the war on terrorism constitutes an insult to those in the United States who endured the real terrorists of September 11th, and is a slap in the face of thousands of service men and women fighting today in Iraq and Afghanistan.
The company uses the December 2005 burning of Ascendant´s “farm” to justify its campaign against the resistance. We note that this event is still under investigation, and we note that several members of the resistance face possible lengthy prison sentences if found guilty. We also note several key points in consideration of this event.
1. In Latin America, there is long tradition, reaching back to the early days of Iberian colonization, of peasant communities taking direct action when their security and autonomy is threatened, especially when the threat is perceived as unjust. Direct action most often followed a prolonged but frustrated process of peasants petitioning their governments. (See William Taylor´s Drinking, Homicide, and Rebellion). The burning of Ascendant´s “farm” is consistent with actions undertaken through history when redress of grievances are denied and peasant community existence is threatened. While we may debate the justification, there is no question that the action is consistent with the history of peasant communities. It should be no surprise to anyone that it happened.
2. The fire needs to be framed within the context of the May 1997 burning of the Bishi Metals´ camp, an act that proved decisive in driving the company out of Ecuador. If the resistance is found responsible for the fire, such accountability needs to be understood as being part of the community arsenal of resistance, one that worked in the past.
3. The fire targeted a highly visible space (it is right on the main road). The “farm” is located in a provocative place in the eyes of those seeking to prevent mining. It is located within a five minute walk of Polivio Perez´s home. As the “farm” has a history of housing armed men, its location close to Polivio Perez´s house constitutes a direct threat to him and his family. It is also now a center for Ascendant´s drive to paramilitarize the region.
4. Those who started the fire took measures to protect human life and guard against individual property. This measure was the practice in 1997. It was very far from a terrorist attack, as those who did it did not indiscriminately aim to wound or kill humans as part of a strategy to cause terror in society.
5. Ascendant would have think that the burning of the farm was the first act in this conflict, that the original sin belongs with the resistance. To the contrary, the fire was most likely the consequence of Ascendant´s aggressive behavior. It is our analysis that the company´s strategy of low intensity conflict is to provoke those against mining to take direct action, such as burning the farm. Ascendant pushes, pokes, and provokes people to the point that they respond with violence (in this case, violence against property). Once that happens, then the company claims justification for bringing in their guards, which opens the door to paramilitarization of the region. Also, the strategy of provocation draws the resistance into lengthy and costly legal battles, and carries the potential of jailing key members of the resistance. Keep in mind that provocation consists of: uninvited presence of the company, refusal to leave after demanded to do so by legitimate community officials, death threats, presence of armed guards and potential formation of paramilitary squads, trespassing upon community property, prevention of free passage of community members on public roads, threats against children, an hostile education environment for children, provoking divisions within the community, trivial legal cases and lawsuits, misinformation campaigns, slanders against foreign residents, etc. Yale University sociologist James Scott calls such situations a violation of peasant´s Moral Economy. He illustrates how such violations often lead to violent responses, such as rebellions.
6. The logic of violence in Intag is simple to follow. When there is no mining threat, people in Intag live in peace. When there is a mining threat, and petitioning falls on deaf ears and leads to dead ends, the people of Intag live in conflict. This logic makes it clear that Ascendant is the cause of any violence in the area. Once they respect the wishes of the communities and leave Intag, peace will return to the land.
To be clear, the communities of Intag have demanded loud and clear that Ascendant must leave. The company´s refusal to comply with the explicit demands of the community are the cause of the conflict in Intag region. The company is responsible for creating a tense, unstable, conflictive, violent, and potentially explosive situation in Intag region, an area know for peace and tranquillity when mining companies are not present. We warn that the company may foster conditions in Intag region that they may not be able to control, and we fear that the company may seek such a situation in order to eliminate the resistance.
Intag Solidarity Network
June 12, 2006
Quito, Ecuador
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