Illegal Auction of the Junin Mining Concession

15 August 2002 | Intag | By Carlos Zorrilla

On August 15th the Junin mining concession in the Intag region of northwest Ecuador was auctioned off by the Ministry of Energy and Mines to a private individual, who offered $18,005.00 for 7,000 hectares of some of the most biodiverse forest in the world. This individual was the only one to show up for the auction and to make an offer. Not a single mining company made offers. This was only one of the irregularities connected with the auction. The auction was not made publicly known, and not a single community or local government was made aware of the government's plans.

The auction was carried out in spite of overwhelming opposition from most of the organizations working in the area and all local government officials in the County of Cotacachi, Imbabura province. On the 3rd of August, six Parish governments presidents, that are in reality much like a small municipality, signed a strongly worded document asking government officials to suspend the illegal auction, and stop the granting of further mining concessions in the whole County. This was the first time that local governments in Ecuador have called for a halt to mining activities within their jurisdiction.

Their request was immediately supported by dozens of local and county organizations, as well as national and international organizations. On Monday, August 12th, 3 days before the auction, the County government of Cotacacahi also joined the historic measure, by publicly passing a resolution supporting the Parish president's call. Auki Tituana, Cotacachi's Mayor, also came out strongly supporting the measure, and in a last-ditch effort to stop the auction, met with Ministry officials hours before the sale. All to no avail. The government went ahead and "auctioned" off the Junin concession, in a move that could very likely prove illegal, in light that no counter offers were presented and that it was not made public.

The absence of the mining companies was very likely the result of the campaign carried out by the grassroots environmental NGO, Decoin, Defensa y Conservacion Ecologica de Intag, and supported by many local organizations, the Mineral Policy Center (MPC) in Washington, and the Global Mining Campaign in Washington as well as other networks around the world, including Global Response in Colorado, and the CNRS Network, in Italy.

Working feverishly against the clock, since Decoin only found out about the proposed auction about 2 weeks before it was to take place, we informed local organizations and local governments and helped organized, together with the Cotacachi County Environmental Commission, the August 3rd meeting which resulted in the historic signing of the document. The work of the County Environmental Commission was crucial in gathering the support from most County organizations and County government. From there, we made the issue known nationally and internationally by contacting allied NGO's and networks, asking support in a letter writing campaign, which was supported by over 50 organizations. Furthermore, MPC agreed to help DECOIN cover the costs of publishing a letter in the national and local press denouncing the auction, and calling attention to the local, regional, national and international opposition to it. In addition to being sent to Ecuador's President and the Ministry of Energy and Mines, the letters were sent to several mining companies that we knew were interested in the concession. We believe the publication in the press played a significant role in scaring away the companies. The local letters, by the way, made it very clear that most of Intag's population was opposed by most of the population, local governments and organizations, and that it would mean trouble.

It is a well known fact in the world of the Extractive Industries, that were local opposition is strong, no mining takes place (or with great difficulties). This is even more so, where local governments back the position of the communities. In light of the struggle against the very powerful mining interests backed up by corrupt, or short sighted government officials and the international lending institutions, the support from local government officials becomes a very powerful proactive mechanism.

Part of that mechanism is passing legislation prohibiting mining activities. In the year 2000, Cotacachi was legally declared an Ecological County by the Municipal government of Cotacachi, after strong and sustained pressure from local populations. Among the activities prohibited in Cotacachi, is mining. And in fact, the Ecological Ordinance was referred to over and over again in the arguments used against the auction. Not only that auctioning off a rich copper mining concession would very likely lead to mining, therefore violating our County Ordinance, but that it would also disrupt the Ordinance main objective, which is to promote sustainable development.

In the near future, we plan to challenge the legality of the auction in court, and will be pressuring for the applying of the Ecological Ordinance. More importantly, we will be strengthening local and regional opposition to possible mining projects resulting from the illegal sale of the Junin concession.

It is in this last strategy that our best hopes lay, and the one which we shall be concentrating on. We know full well how slanted the courts tend to be in this country racked by corruption and nepotism, and the importance local resistance plays in effective and lasting opposition to extractive projects.

 

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