GUATEMALA: SKYE RESOURCES MINING COMPANY & ABUSES AGAINST LOCAL MAYAN
COMMUNITIES
BELOW:
- An eyewitness report on violent and illegal evictions of Mayan-Q’eqchi’
families, in dispute caused by the Canadian Skye Resources mining company
- A Globe and Mail article about how BHP Billiton may buy out the very
profitable Skye Resources ..., obviously despite repression and abuses
against local populations
- What to do
If you want on / off this elist: info@rightsaction.org
===
VIOLENT AND ILLEGAL EVICTIONS IN GUATEMALA RELATED TO SKYE RESOURCES NICKEL
MINING COMPANY, El Estor, Izabal (Guatemala), November 13, 2006
[With small edits and additions, Rights Action presents this report of the
Defensoría Q’eqchi’, a leading development and indigenous rights
organization in El Estor, Izabal. The Defensoria’s report is based on the
testimony of individuals who witnessed the events described below.]
A FIRST VIOLENT AND ILLEGAL EVICTION
On Saturday, November 11 at 2 o’clock in the morning a group of 60
Mayan-Q’eqchi’ families entered Chupon, a property allegedly owned by the
Compañia Guatemalteca de Níquel (CGN), the wholly owned subsidiary of the
Canadian mining company Skye Resource Inc., which in turn is controlled by
the Canadian INCO mining company. The property is located in front of the
CGN community relations office.
On the same day, at approximately 3 o’clock in the morning, the National
Civilian Police (PNC) entered the property in order to evict the occupiers.
Two people were injured in the eviction: Oscar Chub Tiul y Santiago Ical.
Both were taken to the local health centre for treatment.
Later that morning, the Secretary of Agrarian Affairs arrived to meet with
the occupying group and to gather information about the land dispute taking
place in the municipality. The meeting between the leaders took place in the
substation of the PNC. We still do not have a report about the agreements
and compromises reached.
On Sunday, November 12 at 9 o’clock in the morning, Rafael Andrade Escobar,
a district attorney from the municipality of La Tinta, Alta Verapaz, arrived
at the site with the intent to evict those occupying the property allegedly
owned by the mining company CGN.
The attorney was asked to produce a duly signed court order for the
eviction. He failed to do so, arguing that an order was not necessary
because the individuals occupying the land were ‘flagrantly’ committing a
crime. In the course of carrying out the eviction, he was asked what day it
was that the court order stated for the eviction which seems to clearly be
illegal.
The impunity and abuse of authority of the district attorney was apparent in
the eviction, which violated guarantees of due process of those facing
eviction. The Defensoría Q’eqchi’ intervened to prevent authorities,
especially the PNC, from committing abuses against members of the families.
Negotiating with the group, the Defensoría Q’eqchi’ was able to convince the
families to voluntarily abandon the property.
Sometime later, the families reorganized themselves and began to protest,
declaring that they were not in agreement with how the eviction was carried
out arguing that the authorities were in violation of the law. This led to a
confrontation between members of the PNC and those occupying the site.
Another group that had earlier occupied lands joined those that were being
evicted. As a result of the ensuing confrontation, two individuals were
detained by the PNC: Martín Che y Gilberto Hun Pop. They are currently
imprisoned in the Río Dulce substation of the PNC. Two members of the PNC
were wounded in the altercation.
In addition, two other people, José Chocooj Pan y Carlos Caal Tiul,
disappeared during the altercation - their whereabouts were unknown. On the
afternoon of Monday, November 13, José Chocooj Pan was found unconscious and
severely beaten on the side of the road in an area owned by the mining
company CGN.
A SECOND VIOLENT AND ILLEGAL EVICTION
Later in the day, at seven o’clock in the evening, elements of the PNC
headed to the place known as barrio Revolución in the community of
Chichipate, where they proceeded to evict 200 families that had been
occupying these lands since September. The PNC committed a number of abuses
against the individuals occupying the site, illegally entering the barrio,
with no warning, at a time of day outside of that permitted by law, and
without a court order.
This eviction, like those carried out earlier, is riddled with
inconsistencies and illegalities. The confrontation resulted in injuries.
One of the injured was a pregnant woman who was taken to the health centre
for an examination after she was overcome by tear gas fired by elements of
the PNC. Shots were fired from distinct types of guns during the
confrontation, and officers of the PNC robbed community members of money and
other goods.
In reaction to the abuses of the PNC and the district attorney, the
population organized itself in protest. During the night of Sunday, November
12, the group took action against the Skye Resources mining company [CGN],
burning part of the buildings that house the company’s community relations
office.
===
[NORTH AMERICAN INVESTORS MAKING LOTS OF MONEY OFF YET ANOTHER HARMFUL AND
CONFLICTIVE MINING ENDEAVOUR ...]
SKYE BOARD SET FOR FINANCING DECISION
PRODUCTION COSTS AT GUATEMALAN MINE MAY LEAD TO DEAL WITH BHP BILLITON
By ANDY HOFFMAN, MINING REPORTER: With files from Jacquie McNish
http://www.theglobeandmail.com/servlet/story/LAC.20061113.RSKYE13/TPStory/Bu
siness
POSTED ON 13/11/06
The board of Skye Resources Inc. is expected to decide this week how the
company will finance its massive nickel project in Central America, a
verdict that could set the stage for a possible deal with the company's
biggest shareholder, BHP Billiton Ltd. The world's largest mining company
already owns a 16.5-per-cent stake in Skye, which is developing the Fenix
nickel project in Guatemala.
Vancouver-based Skye says Fenix could eventually produce more than 48
million pounds of nickel a year.
Capital and operating costs to get the mine into production, however, are
expected to reach $1-billion, nearly double Skye's market capitalization of
$506-million. Earlier this year, the company retained Cutfield Freeman &
Co. Ltd., a boutique firm from London specializing in mining, to attract
financing partners.
As well, Skye hired TD Securities Inc. in August, to review the company's
strategic options, which could include the possible sale or merger of the
company. Interested parties have been asked to submit bids and the company's
board is now considering how to proceed. "The board is moving towards a
point where it's going to make a decision," said Skye's president and chief
executive officer Ian Austin. The former Placer Dome Inc. and Inco Ltd.
executive declined to comment on whether the company had received a takeover
bid.
Skye, which owns a 92-per-cent interest in Fenix, could also strike a deal
with a joint venture partner to help finance or operate the mine in exchange
for a stake in the project. London-based BHP purchased its stake in Skye
last June saying it bought the shares for "investment purposes" and to
further its "ongoing interest in mining opportunities in Guatemala." BHP has
its own operations located close to the Fenix project. BHP spokesman Illtud
Harri declined to comment on the company's possible interest in Skye.
Speculation of other possible suitors has included Brazil's Companhia Vale
do Rio Doce, which inherited a 12-per-cent interest in Skye with its recent
$19.4-billion takeover of Inco Ltd. However, it is believed that CVRD is
currently not interested in bidding for Skye, according to sources familiar
with the iron ore giant's plans. A CVRD spokeswoman declined to comment.
Skye purchased the Fenix project from Inco in 2004, paying the Canadian
nickel major with shares in the development company. Inco began mining and
processing metal from what was then called the Exmibal project in 1977. Just
three years later it decided to shut down the facility amid weak nickel
prices and high oil costs that made extracting and processing nickel and
cobalt from the area financially unfeasible.
The plant has remained mothballed for more than 25 years, but with nickel
prices near $15 (U.S.) a pound, Skye believes its plan to convert the power
source from oil to other methods will make the project financially viable.
Skye's shares have soared 640 per cent over the past year on takeover
speculation.
In September, several Mayan families occupied land surrounding the mine site
in Guatemala to protest the project, which is currently slated to begin
production in 2009. Mr. Austin said Skye is pursuing legal channels to order
the native protesters to leave.
Skye shares gained 23 cents (Canadian) to $17.40 in trading Friday on the
Toronto Stock Exchange.
===
WHAT TO DO:
Upon request, we can forward extensive information on the harms and human
rights violations associated with nickel mining in the El Estor region over
the past 40 years, or so. The 1999 United Nations Truth Commission
implicated INCO in a series of human rights violations, including killings.
* The #1 line of work in favour of global justice, equality and the
environment is to fund and support local organizations leading their own
struggles in defense and promotion of development, the environment and human
rights. In Guatemala, Rights Action channels your financial donations to
grassroots human rights organizations that are taking a lead role in pushing
this case forward;
* Get involved in education and activism work in your home community
concerning the negative impacts of North American investors and mining
policies on community-controlled development, the environment and the human
rights of local populations in Guatemala, Honduras, Haiti, Chiapas, El
Salvador;
* Consider coming to these counties on an educational-activist delegation
and invite us to give educational presentations in your home community;
* Get on our e-mail and snail-mail lists.
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