In Peru, the great mines employ just over 75,000 people, which represents about 0.9% of the economically active population (EAP) in the country. In Chile, around 78,000 people are employed, 1.4% of the EAP, and in Brazil, 91,000 people, about 0.1% of the EAP. Peruvian economist Juan Aste Daffós said that "mining activity does not have a multiplier effect in the regions, since the purchases of the company at the local level are minimal and the ability to generate employment is reduced because of increasing technological development".

Development? For Who?

Potosí and Oruro are Bolivian regions devoted largely to mining. According to the National Institute os Statistics, Potosí and Oruro are the poorest areas of Bolivia. In Oruro, seven of every 10 inhabitants are deprived of water, electricity and basic health services, while in Potosí, eight out of 10 live in extreme poverty. In Peru, where mining is prevalent, these areas have the highest levels of poverty in the country. Cajamarca, where located Minera Yanacocha is located, is the largest gold mine in Latin America, is the fifth-poorest area in the country, with 77.4% of its population living in poverty and 50.8% in extreme poverty.

For a country as poor as Bolivia, repairing the environment at the current levels of exploitation requires a budget of at least $10 billion. Those who should really pay are the Spanish and English crowns (referring to the debt that is brought from the Colony), but now is paid by the Bolivian people.

Relationship between poverty and mining

The figures speak for themselves: The mining not only does not solve the social or economic problems in developing countries, which are dependent on this activity, but increases them. This inescapable truth was reaffirmed by a report in 2002 of the United Nations Conference for Trade and Development on the least developed countries.

The mining branch is the relationship between exportations of non-combustible minerals and the GDP. The position on the Human Development Index (HDI) rating is the position of the State according to the UNDP Index of the Human Development, which positions the States in accordance to a combined measure of income, health and education: the position varies from 1 (the highest level of human development) to 176 (the lowest).

Ecuador and Costa Rica are mega-diverse countries, rich in water resources and tourism. Ecuador is also rich in oil resources; however, it occupies a position well below that of Costa Rica on the Human Development Index of the United Nations. Chile, on the other hand, has a highly diversified economy, low levels of corruption and its mining is done in the most arid desert in the world. Nevertheless, despite the sharp rise in copper prices in recent years, Chile has not advanced in the HDI.

There is not a single copper mine in the world located in a developing country like Ecuador and in an area similar to that of Junín (Intag) or the Cordillera del Condór, which has not caused enormous social and environmental impact.

Mining, employment and impunity

The Selva Alegre mine (now called La Farge), which for over 30 years has plundered the mineral resources of the Intag area to enrich various multinational companies, is a good example of the harmful economic and effect produced by a mine a large scale. Economically, it has not contributed anything in the development of Intag, and its limestone mine is located adjacent to the two poorest parishes in the area.

To double the production capacity of cement production, instead of employing local people in this sector, hundreds of Chinese workers were imported, in addition to staff from other parts of Ecuador and Canadian technicians (250-300 employees).

This violates Article 77 of the Mining Law, which stipulates that companies "are obligated to employ Ecuadorian staff, in a proportion not less than 80%." But the law is flagrantly violated, and nobody says anything. In the case that it is investigated, surely we will find that authorities interpret the Law to protect the Company.

Source: INFOMINERÍA - El otro rostro de la minería