The multinational Pan American Silver, which has accumulated complaints in four Latin American countries, acquired the MARA mining project in Catamarca. Broad rejection by the residents of Andalgalá, a town that has known the impacts of mega-mining since the 1990s, and announcements of more resistance.
Andalgalá is a case study of mega-mining in Argentina. Minera Alumbrera was established there in the midst of the Menem regime. It has been exploited for more than 25 years without fulfilling the promises of work, local development, or care for the environment. Andalgalá is also an epicentre of resistance: for more than twenty years they have been mobilising against extractivism. They have been walking 700 times (every Saturday) in defence of water and life. And they are on alert for the arrival of the multinational Pan American Silver (PAS), which intends to exploit the questionable MARA project (Minera Agua Rica-Alumbrera), just 17 kilometres from the city and where the rivers that provide water to the region originate.
The sign is huge, white with black letters, and located in a strategic place, on the corner of Plaza 9 de Julio, right in the centre of Andalgalá: “In defence of water and life. Andalgalá free of mega-mining”. And under the flag of Argentina, it adds another concept: “More lethal than Covid-19 is the corruption of governments and mining companies”. It sums up the climate in this city, the second largest in terms of population (after the provincial capital). The message reflects a large part of the feelings of the population, which – since the arrival of the mining activity – has suffered a dozen repressions, judicialisation and the radical modification of its traditional way of life.
In this context, it became known that the Canadian multinational Pan American Silver (the largest silver company in the world) acquired the mining company Yamana Gold, the main shareholder of the MARA project. The corporate statement reports: “The acquisition of Yamana Gold was completed. A significant increase in silver and gold production and improved operating margins are expected”. The MARA project (formerly known only as Agua Rica) was in the hands of a consortium of Yamana Gold, Glencore and Newmon. The incorporation of PAS would try to give it a boost.
Sergio Martínez, from the El Algarrobo Assembly – a historic space in the struggle for the defence of water – recalls that the MARA mining project is “illegal” because it is in an area protected by the National Glaciers Law (26.639) and points out the validity of ordinance 029 that protects the rivers of Andalgalá. “We always tell these companies, whether PAS or Yamana, that we will not allow the exploitation of these projects, because they violate human rights, because our water and the lives of the people are at stake,” she says.
The Canadian organisation Mining Watch is closely monitoring the company’s actions and issued a statement on 10 May at the company’s annual shareholders’ meeting: “Pan American Silver acquires more toxic assets with the merger with Yamana. The company has stated a commitment to human rights, but this discourse is contrary to its pattern of acquiring assets with a history of indigenous rights violations, violence and strong local opposition”.
Unrest against mega-mining in Andalgalá had a high point in April 2021, when Yamana Gold’s headquarters burned down. More repression followed: a dozen neighbours (mostly members of the El Algarrobo Assembly) were imprisoned for two weeks, without any evidence of having been guilty of arson. In May 2022 there were also two repressions in the neighbouring town of Choya, where the mining company was being blocked. The judiciary once again criminalised the neighbours: dozens of people were prosecuted. It is no coincidence that in Andalgalá, due to the non-fulfilment of rights, it is said that a “mining dictatorship” is in force.
Rosa Farías, grandmother and member of Asamblea El Algarrobo, stresses that the struggle against mega-mining will continue because they know that the MARA project puts the entire population of Andalgalá at risk. “It is not pleasant to hear about the arrival of PAS, we know that it is a powerful company and that it has the backing of the government, they both pretend that we don’t exist, they don’t listen to us, but we will ensure that our rights, those of our children and grandchildren, are respected”, she warns.
“Out, out, out with the mining companies”, is the cry that resounds every Saturday evening in Andalgalá. For more than ten years, it has been a ritual to walk around Plaza 9 de Julio with dozens of banners and flags that express the rejection of extractivism. Sergio Martínez sums up the past and present: “Mega-mining has demonstrated its failure throughout Argentina, not only with Alumbrera in Andalgalá. They can’t prove that they don’t destroy, that they don’t pollute and that they don’t plunder us. It is a system of destruction, pollution and plundering that is not viable as a development model for Andalgalá or for any other part of the country”.
Martínez adds another piece of information about the “lies” of companies and governments, based on the official budget: royalties from mega-mining represent only 1.68% of the provincial budget. He recalls that on Saturday, July 1, 700 walks were completed in Andalgalá and two historic banners will be waved again: “Water is worth more than gold” and “Andalgalá is not for sale. Aconquija is not for sale.
A highly questioned mining company
Pan American Silver is a well-known company in Argentina and Latin America. For fifteen years it has been trying to exploit the Navidad silver-lead project in Chubut. It had the support of all governments (provincial and national) but was unable to move forward due to the widespread rejection of the population. A historic event took place in December 2021, with a popular mobilisation known as “el chubutazo”, when after seven days of mobilisation in the streets (and even a partial burning of the Government House), Governor Mariano Arcioni had to backtrack and reinstate the restrictions on mega-mining.
By acquiring Yamana Gold, PAS is also taking over the questioned Suyai project in Esquel, where in March 2003 the population had already voted and rejected (with 81 per cent of the votes) mega-mining. The company has accumulated complaints in Guatemala, Mexico, and Peru.
