Universidad Internacional SEK

Facultad de Ciencias Ambientales

Environmental and Sanitation

Mining in Intag: Community and Government

Dmitri Agurto, Mauricio Garcés, Xavier Landázuri, Sebastián Toro & Javier Valdivieso

Quinto Semestre de Ingeniería Ambiental

2013-2014

Table of Contents

1. Chapter 1: Introduction

2. Chapter 2:Theorical Framework

2.1. Intag: History , Geography, Economy and community

2.2. Minery in Ecuador

2.3. Minery in Intag

3. Chapter 3: Background, mining in the community of Intag

3.1. Mitsubishi Project

3.2. Study of the environment impact accomplished by Agencia de Coorperación

Internacinal Del Japon (JICA) and the community´s reaction.

3.3. Ascendant Copper Project: Problematic.

4. Chapter 4: Present situation between the community and the Llurimagua Project (ENAMI -

CODELCO)

4.1. Project Approach

4.2. ENAMI – CODELCO and Intag´s community

4.3. Intag´s community: Reactions and Activism

5. Chapter 5: Future projection regarding present situation

5.1. Advantages

5.2. Disadvantages

6. Conclusion

7. Annexes

1. Chapter 1: Introduction

Since the last century, when the industrial revolution took place, the curve of the global demography has been making a tendency of growth. Al so the economy level has been changing from up to down with crisis and recessions, but the proliferation of new technology and engineering has been developed in order to keep on with the system of capital management. The natural resources that provide humankind products like gasoline, clothes, food and electricity have been exploiting without any responsibility for the future generations (López, 2001). There is an article published by Kumi Naidoo, Greenpeace International Executive Director, that says: “that mind kind already ate about two Earths and a half on natural resources and this number is continue rising up”

The fountain of these resources is the soil that performs a large number of key environmental functions as economic, social and even cultural place which is essential for humanity. It is the base where food production and plant growth. In the same way, stores minerals, organic matter, and chemical substances, and the most important element, water. It is considered a fragile and non-removable natural resource, because it is almost impossible to recover or restore their properties after this have been altered. (Semarnat, 2005). The earth's surface is composed by a mixture of minerals and organic material. This mineral layer comes from the source material of earth's origins structure known as Lithosphere. Also is a product of the disintegration of rocks, caused by physical, chemical and biological interaction. At the same time, this fraction is mainly constituted by sand, silt and clay, the amount of each component determinate the soil texture. Also depending of conditions like rain percentage, porosity, temperature you can know the soil type (Ordoñez, 2013).

In the same way Ecuador, as a growing country, can’t stay out of the new advances, so the new government has been changing the way that resources are managed. Also the spending on subsidies of fuel, electricity and other resources is an unnecessary amount of money. Ecuadorian economy is principally based on petroleum exploitation and the export of source materials like cacao and banana that maintain afloat the economy development. But the resources are limited, so this situation has led to create new policies about country’s productivity and improve new ways to generate it. One of this was the new structuring of the bonus payments to the IMF in order to keep money for industry development and the change of the matrix production (Villareal,2012).

During the last decade, Ecuador has been improving the development of large-scale mining. This industry has been building by legal and economic measures promoted by the new governments, also in oil exploitation like Yasuni-ITT. The mining intervention, contributes in a context of social unrest and has generated considerable national debate about the relevance of promoting large-scale mining on the country (Fidh, 2010).

The metal artisan mining has been working historically in the country. Some small towns in the Andean region, Cost, and especially in the Amazon; steel extracting minerals like gold, in a traditional way. According to the Ministry of Energy and Mine, the contribution of small-scale mining to GDP does not exceed the 0.28%, making this a smaller number than other extractions. The mining activity took force in the 90's when foreign enterprises started to invest money around Andean countries. Also the World Bank gave a very important credit to Ecuador in order to implement mining as a source of the economy. But they suggest making the PRODEMINCA, this is a project that had intended to change existing laws and make them safe for investment. But this

was a trap, because in this set of laws, the environmental element was not included or it was very poor. This takes advantages for mining enterprises, because work contracts can be easily win and a huge percentage of money was for their and the rest for the Ecuadorian state. PRODEMINCA also brake the environmental laws and permit the mineral extraction on natural protected areas (Garbay, 2011).

Figure 1, Ecuadorian Mining Cadaster Map. Source: Ministry of Energy and Mines

Figure 2, Ecuadorian Mining Cadaster Map including Natural Protected Areas

Source: Ministry of Energy and Mines

These figures show the potential of mineral extraction around the country. According to these studies, it has established mining extraction projects, combining with the standards of actual regulations. In this context, the potential interest of mining in Intag, particularly in the Junin community is now in progress (Garbay, 2011).

In the province of Imbabura, inside of Cotacachi’s Canton you can find a small town named Intag. It has about 3000 population, and a predominantly temperate climate, with temperatures ranging between 10 ° C. and 25 ° C. Its geographical location makes it suitable for the development of wildlife, making it a focus of high biodiversity. Garbay on her essay says that: “This place also has significant deposits of copper, molybdenum , silver and gold , for what this site is coveted by mining companies. In August 2002, the Ministry of Energy and Mining concessions publicly bid mining in the area, giving an individual right to perform mining activities in an area of 7,000 hectares” (Garbay, 2011).

This was the first time that the mining was improving on Intag, the people that lives there noticed when the enterprises started to arrive with the entire machine to make the perforations and started to build campsites. People were against mining so they started to organize demonstrations in front of campsites but the enterprise called the local Police in order to evict protesters. When the Police and Army arrived, people organized a revolt and defends their rights. This causes a huge conflict, but at the end the action of the mining company was banned (Alvarez, 2013).

2. Chapter 2: Theoretical framework

2.1. Intag: History, Geography, Economy and Community

As Kocian et al. (2011) mentioned, the region of Intag in Ecuador takes two of the thirty four most important biological areas in the world. It’s a subtropical zone with approximately 1462 km 2

located in the border of the Andes Mountains, in the Cotacachi and Otavalo jurisdiction in northern Ecuador (Cazares, 2010).

Intag is integrates in seven rural towns which are separated by two major cities mentioned before. This towns are, Garcia Moreno, Apuela, Cuellaje, Peñaherrera, Vacas Galindo, Plaza Guitierrez and Selva Alegre. Intag´s population is approximately of 13 thousand inhabitants, distributed in 76 communities (Cazares, 2010)

This region´s economy has been developed within ecotourism and its home land of coffee plantations. The agriculture of this region is self-sufficient and emerging in the exportation market. Their crafts are also been taken into the exportation market asi Intag has many History. (Kocien et al., 2011)

Kocien et al. (2011), also mentions that: Intag is a very steep area and it’s also considered very mountainous, in this matter half of the land has been turned into small to medium size farms. Approximately 90% of the population owns the property in which they grow their plants; this only indicates that there is a big dependence in

agriculture for their own subsistence. The farm sizes vary between 1 thorough 50 acres with an average of eight acres per family. This way, the fastest route to economic progress for the biggest part of Intag´s residents is to increase their real incomes through de increase of their incomes of their already existent farms.

Cazares (2010) mentions in his investigation that they have found vestiges of pre-Hispanic settlements, this way the communities that we know in the present have around 100 years. It´s also mentioned that this was consequence of a colonization process in a social pressure for land in the northern part of the country.

In 1964, the agrarian reform drove de colonization of the forest lands in Ecuador. The properties that had more than 80% of forest were considered “unproductive” and they could have been taken away under the laws of this reform, this boosted colons and landowners were practically obliged to deforest 50% of the lands to demonstrate that they were giving their land a productive use (Kocian et al., 2011).

In the 90´s, the Japanese company “BISHIMETALS” explored and discovered copper deposits in the Toisan Mountains, northeast of Intag (Garbay, 2012). According to Kocian et al. (2011) Bishi Metals assures that there are around 318 million metric tons of copper ore and it is also assumed that 2.26 million tons is pure copper lying in the Intag´s forest, river basins. Bishi metals also mentioned that the impact on forest is the “massive deforestation” and that this will contribute to “desertification” in the local climate.

From this, local communities worried about big scale mining formed social organizations like Asociación Agro artesanal de Caficultores Río Intag (AACRI), Mujer y Medio Ambiente, and Defensa y Conservación Ecológica de Intag (DECOIN) which propose an alternative economic model that wishes to replace the extractive model based on mining copper. This way, Bishi Metals surrender to the extractive project in 1997 due to the opposition locals. This was the first confrontation of Intag´s Population against big scale mining in their lands (Kocian et al., 2011).

That is why Intag with exceptional ecological richness condition, contrasts with the presence of minerals whose exploitation can have serious repercussions on the flora, fauna and local people. Thus several years many of its inhabitants and settlers have initiated processes of resistance to this serious threat to biodiversity around them forming these organizations and strikes organized by other people (Cazares, 2010).

2.2. Mining in Ecuador

In Ecuador, the mining activities took impulse in the beginnings of the 90´s, there was an initiative and support of international financial institutions like in other countries in the area. There was an incentive given by the World Bank in 1994 to Ecuador to create development projects which could modify the institutional and the legal framework (Garbay, 2012).

The World Bank estimates that for each mining employment there are going to be about 25 employments including sale man contractor and other, this drove the World Bank into thinking about investing in Ecuador´s mining projects knowing that Ecuador has a lot of hidden copper, gold and other ores (Kocian et al., 2011).

Garbay (2012) also mentions that this intervention caused the reduction of the amount for patents that companies must pay, plus the time limits were removed to extend concessions and prohibitions for mining activities in protected forests. This last event caused the modification of the Mining Law in Ecuador (Kocian et al., 2011).

Ecuador is the only Andean country free of great scale metal mining. The mining exploration had just begun in 2000 after the approval of the Mining Law which facilitated the exploration of multinational corporations (Kocian et al., 2011).

In 2008 as mentioned by Kocian et al. (2011), when Asamblea Nacional Constituyente approved a mining decree, almost all mining activities were suspended in the country. This decree ordered the Ministry of Natural resources to revoke almost all mining concessions for reasons like not paying annual honorariums and for not protecting the natural areas that were impacted.

Another Ecuadorian law that has to be taken into consideration is the Water Law. Since water is always contaminated by industrial processes, mines though, contaminate water in ways in which it´s very difficult for it to be remediated, like contaminations with heavy metals (Cazares, 2010).

In Ecuador, like in the majority of countries in Latin America, water is a national good and it´s also of public use with the exception for some indigenous communities that have ancestral rights. The article 36 of this law establishes a hierarchy for the use of water; the top priority is to supply water to the different communities followed by wells and after those come agriculture and sheepherding (Kocian et al., 2011).

The 2008 constitution gives nature the recognition that the ecosystem also needs water to function properly, in this matter the Ecuadorian government has the responsibility to inform the community the impacts that may occur in case of any mine related movement (Garbay, 2012).

The extractive industry in Ecuador is mainly part of the petroleum production which reached its maximum in 2006. Since then it has been decreasing. Since the gas reserves in Ecuador has been wasted out, Correa´s government has started to consider metal mining as an important source of income for the state in the near future. In 2007 the Ministry of Energy and mines in Ecuador has grated more than 4000 new mines (Kocian et al., 2011)

Article 87 of the Mining Law establishes the right of information, participation and consult. The government has the responsibility to execute all of social participation and to habilitate the process of consults throughout public institutions that correspond (Kocian et al., 2011).

These actions aim to promote sustainable management within the mining activity, rationalizing the use of resources and maintaining the interest and support of communities (Garbay, 2012).

In December, 2009 the first national mining company called ENAMI EP, this company was created by executive decree (Kocian et al., 2011).

2.3. Mining in Intag

Like it has been mentioned before by Kocian et al., (2011), Intag is populated by farmers and peasants who dedicate their lives and their lands for ecotourism, sowing, crafts and others for their economic welfare; in this way they try to preserve their natural surroundings.

This place also contains one of the largest copper ores in the country, there is not only copper but there are also thought to be gold, silver and molybdenum. It’s because of this reason that this place is lusted by many international industries (Garbay, 2012).

In 1995, explorations carried by BISHMETALS, a subsidiary of Mitsubishi were the first to cause a socio-environmental impact like the contamination of the river Junin, principal provider of water to the inhabitants of Intag with high levels of Arsenic and the deforestation of many parts of the cloudy forest of Intag (Garbay, 2012).

As mentioned by Garbay (2012), BISHIMENTALS Company had never elaborated an environmental impact study but they have explored the land. This complaint followed by the water contamination complains were reported to the Ministry of Energy and Mines, however no response was obtained. This caused the reaction of the population that led to the expulsion of the mining company by their own hands.

In 2002, the Ministry of energy and mines offered publicly the concessions of mining in this zone, granting a particular the right to establish mining activities in an extension of 7000 acres. These concessions were sold in 2004 to Ascendant Copper Corporation, bypassing and overlooking the mentioned before requirements like the participation of the inhabitants (Cazares, 2010).

As mentioned by Garbay (2012), the unacceptance of the inhabitants with mining lead the company to commit other irregularities in which both inhabitants and the company were damaged.

As BISHIMETALS, Ascendant Copper didn’t have the previous environmental impact study which caused anger into the inhabitants of Intag. They didn’t take into consideration the participation of the community, as the government says it has to. To win against the resistance of the community, they appealed to other strategies like the hiring of private security which injured many inhabitants and many of them were members of “Juntas Parroquiales” (Garbay, 2012).

The most serious event occurred in December of 2006, when this private security leaked in the community´s land using guns, tear gas, and dogs. It was also proven that the Ecuadorian Armed Forces were also participants (Garbay, 2012)

That same month they had also destroyed the fence and the antenna of “Radio Comunitaria de Intag”. A journalist was threatened and after that, she and the president of the “Junta Parroquial” were sent to jail on false accusations. This way they would want to “scare” the community and other environmental organizations (Garbay, 2012).

This and other false accusations were taken place by Ascendant Copper, which wasn’t until 2007 that was eventually thrown out of Intag by the same people which´s human rights were trampled by not only the company but also the government activist and many habitants of Intag protected their lands from what they thought would be its destruction (Kocian et al., 2011).

The royalties are based on percentages of sales of the primary and secondary materials, and will be paid twice a year. Section 93 of the Mining Law of Ecuador provides that mining concessionaires will pay royalties of not less than five percent of revenues. In addition to this payment, the mining concession will be subject to four national taxes: 25 percent of revenue, 12 percent of profits, 12 percent of value added, 70 percent of unexpected earnings (Kocian et al., 2011)

The National Mining Plan of Ecuador estimated that the mine in Junin could generate about $85 billion. However, the mining plan does not provide specific details of how this estimate was calculated (Kocian et al., 2011).

This amount of money made will be acquired only by the deforestation of protected areas and about 4050 acres of primary forest that will eventually cause desertification (Garbay, 2012).

In 2011, Fieweger mentions that CODELCO plans to mine Intag´s deposit with a contract signed in 2009 by the President of Ecuador, Rafael Correa.

CODELCO is a Chilean mining company that also mentioned that this deposit is located 80 km northeast of Quito and that it has been investigated by other international companies like Ascendant Copper and BISHIMETALS, referring to Intag (Fieweger, 2011)

Chile has many previous agreements with Ecuador´s government. First Ecuador signed a contract for mining cooperation in 2003. The second agreement came in 2008 creating a company called Empresa Nacional de Petroleo (ENAP) between Chile and Petroecuador. And now the 2009 CODELCO´s mining exploration which explored 11 points in Ecuadorian soil, this way Enami EP and CODELCO will join together to extract and that will get mixed participation. This agreement will last around 4 years with the possibility of renovation (Fieweger, 2011).

3. Chapter 3: Background of mining in the community of Intag

3.1. Mitsubishi Project.

Mineral exploration in the Junin area started at the beginning of the 1990s, this was due to the arrival of Mitsubishi. Mitsubishi is a transnational corporation that received money from the Agencia Japonesa para la Cooperación Internacional (JICA) with the objective of carrying out exploration activities in the mineralogical sites of mine Junin-Cuellaje (Zorrilla, 2010).

The Japanese company Mitsubishi took a great interest in the mineral potential of Intag, this interest will increase more with the Proyecto de Desarrollo Minero y Control Ambiental (PRODEMINCA), which was financed through a loan from the World Bank and that was implemented during the second half of 1990 (Zorrilla, 2010).

PRODEMINCA had 2 goals: the first approach was to develop maps of mineralogical resources of the country, in order that the mining companies would have to invest its own plant in the search for minerals, and the second the drafting of a new mining law to attract foreign investors to the sector (Paz, 2013).

The Japanese company began to explore the minerals in the region. The communities were not informed about the project, but regardless this the company began the explorations without legal permits. A problem that the habitants noticed was that the camp of the company was located on the banks of the river Junin, this provoked several waste go to the river, with this being a source of water for the inhabitants of the sector. This caused that the opposition to the Japanese company started (Zorrilla, 2010).The company's exploration caused people to start to educate about the effects of copper open-pit mining. Once they knew the effects that would lead to the exploitation of copper in mining industries began to organize a defense in 1995, defense and ecological conservation of Intag (DECOIN) was founded. Its objective was to resist the mining, conserve biodiversity and promote sustainable alternatives for development, DECOIN created other organizations such as the agro-artisanal Association of coffee “Rio Intag”, created in 1998, this Association produces and sells coffee, was created by the mining sector threat (Fieweger, 2008).

In 1996 the Japanese company Mitsubishi presented an environmental impact assessment which evaluated all the impacts of the exploitation of a relatively small copper deposit as Intag. Residents once the company began to explore the fields realized that the company performed no studies for the realization of the project, since it represented a high risk to the environment. The inhabitants had fear by massive deforestation, the impacts to the species in danger of extinction and the pollution of the water (Zorrilla, 2010).

Initial explorations of the company had negative environmental impacts, the company drilled the earth deeply with the objective to collect rock samples and determine the quantity and quality of the mineral deposit, there are studies that show that after 15 years, these drilling wells continue to leak arsenic in the Junín river, being forbidden the use of this river for domestic uses how to use it to cook or eat it (Paz, 2013).

Mitsubishi paid little attention to the Ecuadorian law while exploring in Junin. Among the most serious crimes:

1. Not conducted an environmental impact study that is required before the exploration of the mines. 2. It was not reported to the inhabitants on the mining project that was going to take place. 3. Not consulted with the communities who were to suffer the impact of mining. 4. Contamination of the Junin River.5. Left behind huge damage on the farms where samples are taken.(Zorrilla, 2010).

Defense and Ecological Conservation of Intag (DECOIN), an environmental organization in the area created in response to the threat mining, denounced repeatedly on all these crimes, the company was doing , but were ignored (Fieweger, 2008).DECOIN was still presenting complaints and concerns with the Ministry of Energy and Mines on the Japanese company Mitsubishi of the activities that took place in Intag, but took no action. The conflict came to an end in May of 1997 when hundreds of people in seven communities occupied the camp of the company. After three days frustrated that their complaints were not heard, they dismantled a part of the camp and burned what remained. Realizing the opposition of the inhabitants Mitsubishi went away from Intag (Zorrilla, 2010).

In September 1997, in an assembly formed in the community of Cotacachi was created an Environmental Association with the goal of protecting the environment and avoid economically destructive activities, such as mining; this showed the degree of opposition of the inhabitants toward the mining(Fieweger, 2008).

3.2. Study of the Environmental impact accomplished by Agencia de Cooperación Internacional Del Japón (JICA) and the community´s reaction.

The deposit Junín was discovered by the Agencia de Cooperación Internacional del Japón (JICA) and also by the Ecuadorian government, this one deposit comprises an ore of 318 million tons, where there exists a content of 0.7 % of copper and 0.4 % of molybdenum, this means approximately 2.2 million tons of commercial copper and a little more than 300 of molybdenum (Paz, 2013).

This is a deposit of world class whose social, environmental and economic impacts were detailed very clear and precise form by the Study of Environmental impact that was realized by JICA in 1997. This document is the base on which the Intag communities organized themselves this way to be able to know more, inform the people and with this to begin a long struggle for the defense of the territory (Paz, 2013).

The Agency of international cooperation of Japan (Jica) studied environmental impact on mining in Intag after Mitsubishi company decided to went away from Intag, in the year 1996, the results were the impact to the Cotacachi Cayapas ecological reserve, the direct involvement of 4.050 hectares of mostly primary forests, is a massive deforestation, this will contribute to dry local climate, deforestation and an impact on the habitat of 28 species of mammals and birds threatened by extinction (Zambrano, 2007).

This study also revealed the contamination of water with copper, in the river and creeks of the areas surrounding the place of exploration, the contamination was not only copper but also of arsenic, cadmium, chromium and lead at levels up to 10,000 per cent above normal levels; these results remain very powerful toward the inhabitants of Intag (Zambrano, 2007).

There would also the groundwater contamination; one of the problems was the use of heavy metals that are carcinogenic for those who are in contact with them, the studies of Jica indicated that to treat 2 million tonnes of copper would require more than 220 million m3 of pure water which in this case would be returned to the natural rivers with heavy metals (Zambrano, 2007).The social problems was another factor for mining in Intag not prosper, already had been moved to a place where they had been living to relocate them to other sectors to more than 4 communities, around 200 families; it was revealed health problems directly affected by:

-Sources of drinkable water and agriculture - livestock -Dust in suspension-Noise - Metals - lead – arsenic

(Zorrilla, 2010).

Also problems such as:- Massive deforestation- Contamination of water sources with lead, arsenic, cadmium and chromium (metals associated with copper). - The disappearance of dozens of species of birds, mammals and reptiles in danger of extinction in the area (jaguars, spectacled bears, pumas, 2 species of monkeys).- Impacts to the Cotacachi-Cayapas Ecological Reserve

(Zorrilla, 2010).

In addition, the scientists of the JICA predicted a series of social impacts, among others:

- Relocation of at least 100 families of four communities whose farms are on the site of the proposed mine and the required infrastructure.- Creation of a mining town of 5000 inhabitants (the larger population centers of Intag are the parish centers, each with less than 500 inhabitants.- Increase in the crime and traffic accidents.

(Zorrilla, 2010).

All of these impacts were based on a quarter of the total copper that the company company Mitsubishi found- therefore, we believe that the impact will be greater, and that at least 6 communities will be directly impacted (Zorrilla, 2013).

3.3. Ascednant Copper Project: Problematic.

In 2004 the company Ascendant Copper (later known as Copper Table) was granted the concession to complete mine site in Intag, its activities were very similar to those of Mitsubishi, had the same problem, do not refer to the local communities about what they intended to do; once the inhabitants of Intag learned of the company and what they intended to do, a new conflict broke out in Intag and the inhabitants were not to wait to see the consequences of what the company would do. But this time the opposition was determined not to allow appropriate mining communities and even opposed to the fact that the company will begin to explore, something they did the Mitsubishi Company (Fieweger, 2008).The strategy of the Ascendant in order to convince the local people of the goodness of the mining included a development project for five local communities that have a cost of $16.5 million. This project included the construction and/or maintenance of 30 kilometers of roads; new bridges in two rivers; a health clinic with complete equipment and personnel; an ambulance; thousand new houses; computers to 37 schools; a new college; training in organic agriculture. All these promises would be once the inhabitants of Intag accept mining in the area (Fieweger, 2008).

In 2008 the concessions from the company were canceled due to the resistance that the inhabitants were imposed, to date the only exploratory activities were carried out the company Mitsubishi during 1993-1995, which had to be abandoned due to the resistance of the affected community, the residents know the DNO that would explode in the mining sector (Zambrano, 2007).

As a result of these environmental education activities, Intag was ready for the next round of the struggle against mining: the auction by the Ministry of Energy and Mines (MEM) of the Junin concessions. Despite the rejection by the presidents of the six governments parish in the area, the majority of councils and more than 20 workers in the canton, the MEM not only gave the green light to the auction of 15 August 2002, but that he was awarded the concession to Roque Bustamante, the only bidder in the auction. Mr. Bustamante paid $18,005 for the right to undermine an extension of 7,000 hectares (Zambrano, 2007).Ascendant launched an organization called CODEGAM with the objective to obtain support for your project, this organization employed people of Intag to be in charge of community development, the construction of roads, housing projects and hospitals within the area. CODEGAM engaged in an aggressive campaign in favor of the mining, harassment of bribery and intimidation, the followers of this organization blocked the roads to the opponents of the mining could not join (Zambrano, 2007).

The social divisions in Intag each day grew activists against mining received death threats and were arrested on charges they were fake. There were smear campaigns against members DECOIN. In addition to this group are involved groups of human rights in Ecuador (Fieweger, 2008).

Despite the conflict, and intimidation toward the opponents of the mining, these in December 2005 initiated protests that led to the burning of the mining camp of Ascendant. 300 People from 15 communities took the collective responsibility for the act, in the regional set of Intag in 2006 nearly 800 people, including the parish presidents, community representatives and residents voted in favor of strong measures against the mining and expelled Ascendant of Intag (Zambrano, 2007).

In July 2006 more than 600 residents marched to the Ministry of Energy and Mines and several of them also traveled to Quito to protest at the offices of Ascendant against mining (Paz, 2013).In the months of November and December 2006 armed guards attempted to enter the concessions of Ascendant, these were blocked by the communities resulting violent clashes; it was recognized that these armed guards were the human rights group of Quito, CEDHU (Zambrano, 2007).

At the end of 2007, after three years of conflict, of divided communities and social unease of general among all the people involved, the Minister of Petroleum and Mines ordered to Ascendant Copper to suspend all activities related to mining (Zambrano, 2007).

In 2007 with the government of Rafael Correa was adopted a new constitution that uses indigenous concepts, with the rights to nature and the right to good living. Despite the current belt fully supports the extractive industry, insisting that Ecuador needs royalties (Fieweger, 2008).All the struggle of communities in Intag has been an example of the resistance toward the companies that have tried to exploration in the area. Many economic initiatives, productive, organizational, conservation, have emerged and several have been successful, proving that it is possible to live with dignity in the field without destroying mother earth (Fieweger, 2008).

However at present governments and transnational mining capital are still trying to hijack this territory, there are companies and groups that are trying to make in the mining sector, there is interest in developing mining projects of medium- and large-scale in Ecuador, the inhabitants

know that with the two companies that previously tried to perform mining in the area left them an unpleasant experience, the fight is not going to be easy in spite of the fact that there are people that are now in favor of the mining, by concepts of responsible mining in one way or another the has imposed with the passage of time (Zorrilla, 2010).

4. Chapter 4: Present situation between the community and the Llurimagua Project (ENAMI - CODELCO)

4.1. Project Approach

Intag is located in the Andes at an altitude of 650-4000 meters, in the province of Imbabura in northern Ecuador. Seven parishes make Intag, a total area of 150,000 hectares. In Intag there are about 17,000 people living in 76 rural communities where small-scale agriculture is the economic base of the region (Kocian et al, 2011).

In the nineties, the Japanese company Bishi Metals explored and discovered copper deposits in the Cordillera of Toisán in northwest Ecuador. There may be present as much as 318 million metric tons of copper ore. And it is assumed that 2.26 million tons of pure copper lies in the various forests and watersheds of Intag (Kocian et al, 2011).

With the decrease of oil reservoirs and growing demand for minerals from emerging economies, leaders at the provincial and national governments are under tremendous pressure to expand government incomes through the extraction of natural resources (Kocian et al, 2011).

Ecuador's oil production peaked in 2006 and since then it has been declining. With high quality gas reservoirs out of stock, Correa´s government started to consider metals mining so they began the Ecological Study of Intag, Ecuador: Environmental impacts and potential mining rewards (Kocian et al, 2011).

The "LLURIMAGUA´S" Project located in the region of Intag has a concession area of 4,839 hectares for open pit mining of copper – molybdenum (Enami EP, 2013).

Source: Enami EP (2013)

Copper is highly demanded worldwide and has become a major industrial metal, ranking third after steel and aluminum. This provides an attractive opportunity to increase the national income. Never the less, most of Intag´s population has worked for more than a decade to develop and implement an economics’ alternative view of the region (Kocian et al, 2011).

Copper is found in ores that have to be removed mechanically by open pits. This process involves an intensive capital because of the removal of large volumes of soil that are crushed and concentrated. It is also required a lot of energy for the removal of copper out of ores (Kocian et al, 2011).

Ecuador´s National Mining Plan has estimated that Intag´s mine in Junin could generate 85 billion dollars. However, the Mining Plan doesn’t establish how this figure was calculated (Kocian et al, 2011).

The granting of the mine now belongs to Enami EP. In 2009, Enami signed an agreement of four years with CODELCO, a mining company from Chile that allows CODELCO to explore for mining concession areas in Ecuador (Kocian et al, 2011).

In Intag it is proposed an open pit copper mine. For extracting the copper it will be needed to dig and move large amounts of soil, ore and barren rock. A typical copper mine produces 3 to 4 pounds of copper, 5 ounces of zinc, 3 ounces of lead and 2 ounces of arsenic for every ton of rock and soil. This changes the topography, the landscape and the flow of surface and groundwater (Kocian et al, 2011).

The restoration of the site is essential to relieve or mitigate any potential long-term impacts of mining. There is always the risk of taxpayers and government having to absorb the cost of restoration if it isn’t properly stipulated that mining companies have to restore the affected area in the Mining Law or contract agreement (Kocian et al, 2011).

The cost of environmental protection for the producers and government can be significantly reduced by including it proactively in the initial planning and design of the Project instead of having to take corrective measures to compensate for design deficiencies (Kocian et al, 2011).

The technicians of Enami EP and Copper Corporation of Chile (Codelco) have initiated the survey of environmental information and field sampling for the preparation of the Environmental Study for the Llurimagua´s Project (Ministerio Coordinador de Sectores Estratégicos, 2013).

This study will allow the development of an environmental management plan for obtaining the environmental license that is required before initiating any inherent geological research in the area in order to design measures to prevent, minimize or eliminate environmental impacts through this plan (Andes, 2013).

The types of samples that are taken for an environmental impact are related to water, soil, flora and fauna, archeology, noise and social information. On this last point there are conducted several surveys to the communities within the area of influence to gather information on basic services, employment, perception and production activities (Andes, 2013).

The equipment used at this step is not invasive for the environment, because it is conformed by easily transportable equipment and biodegradable materials (Ministerio Coordinador de Sectores Estratégicos, 2013).

Prior to the entry of Codelco and Enami EP to Intag there were made previous socializations with the communities that are on the area of influence, where over 400 people from the area participated in the explanation of the work that will be developed by the mining companies (Ministerio Coordinador de Sectores Estratégicos, 2013).

4.2. ENAMI – CODELCO and Intag´s community

The National Mining Company (Enami EP) promotes the dissemination of Llurimagua´s project information in Cotacachi, Imbabura province, to the students from schools and colleges in the areas of influence, as part of its corporate social responsibility and environmental care (El Telégrafo, 2013).

Source: El Telégrafo (2013)

"In Ecuador mining can be handled responsibly and Enami EP knows the best way to do it, then mining is not bad. Mining helps us and brings us progress, but it has to be done with awareness" said an official member from Enami EP (El Telégrafo, 2013).

The State guarantees the development of communities within the area of influence of Llurimagua´s Project (Enami EP, 2013).

As part of this development, the State intends to intervene in Intag with 28 million 500 thousand dollars through "Strategic Ecuador" between the years of 2014 and 2017 by various projects such as sanitation, health, roads, security, etc. (Enami EP, 2013).

"We are here to commit to the continuous development of all the communities in Cotacachi, García Moreno, and the parishes that are near Intag. The President (Rafael Correa) with absolute responsibility is driving us to take advantage of natural resources by being responsible with the environment" expressed the Vice minister while referring to the benefits generated by mining (Enami EP, 2013).

"We want to socialize the project. There is a desire for us to carry the project in the best terms and to have a process in which the participation of the community is a fundamental part of the development" said the manager of Enami EP, Santiago Yépez (Enami EP, 2013).

4.3. Intag´s community: Reactions and Activism

The region has developed an economy based on ecotourism and it is also the home of coffee plantations. The agriculture in the region is self-sufficient and emerging in exporting markets. Their crafts are also entering new markets (Kocian et al, 2011).

Bishi Metals left the project related to the extraction of Intag´s copper in 1997 due to local opposition (Kocian et al, 2011).

In 2004, Ascendant Copper Corporation, now known as Copper Mesa obtained a full mining concession to start exploration activities in Intag. Their strategy was to collect enough capital to develop mining operations, which would create incentives to persuade local people to depend on jobs created by the mine. But after several requests from the local population and cases of violent clashes between groups against mining and paramilitary forces employed by the company, the Ministry of Mines and Petroleum ordered Ascendant to suspend all activities in September of 2007 (Kocian et al, 2011).

After his election as president of Ecuador, Rafael Correa canceled Ascendant´s concessions in Intag due to the violation of human rights (Kocian et al, 2011).

Establishments as Asociación Agro artesanal de Caficultores Río Intag (AACRI), Mujer y Medio Ambiente, y Defensa y Conservación Ecológica de Intag (DECOIN) are providing an alternative economic model instead of the extractive model based on copper mining that the State has presented (Kocian et al, 2011).

Subsistence Agriculture: Intag lies in a very mountainous area where half the land has already been converted to farms of small and medium scale. Approximately 90% of the population owns the land that tills, indicating a strong dependence on subsistence agriculture. The farm size ranges are from 1 to 50 hectares with an average of eight hectares per family. The fastest economic progress for most residents of Intag would be by increasing the existing farm incomes (Kocian et al, 2011).

Livestock is an essential part of the local economy. Pigs, chickens, cows, and some guinea pigs are used by families and / or sold in markets. Approximately 50% of cattle are used regionally for milk and meat for families. The other 50% is sold in domestic markets (Kocian et al, 2011).

Approximately 2,500 liters of milk are collected each day. Each farm provides from 5 to 150 liters per day. In one day milk collected provides an income of $ 600, representing $ 3,000 in a single week. Intag´s milk is considered to have a better quality due to environmental conditions and specific animal genetics (Kocian et al, 2011).

Coffe Production: Coffee is a product of global importance, in fact, it is the second most traded after oil. AACRI (Asociación Agro artesanal de Caficultores del Río Intag) began in 1998 with 18 participants. Currently 400 families are part of the cooperative (Kocian et al, 2011).

In 2010, approximately 180,000 pounds were processed and toast in Intag to be sold in local markets as well as in Otavalo and Quito. Another 40,000 pounds were exported (Kocian et al, 2011).

Ecotourism: As described above, ecotourism is an initiative that has already marked its course, but there is still potential to grow even more (Kocian et al, 2011).

Hydroelectric power: Toisán Consortium started in 2006 with the aim of supporting the sustainable production activities in the region of Intag. Currently the consortium is preparing a proposal, HidroIntag, 10 small hydroelectric generating dams in Intag. These dams can generate electricity worth $ 30 million per year and allows the region of Intag to be 100% self-sufficient in energy, while the excess energy would be sold (Kadish, 2008).

For this hydroelectric project to be successful in long term, it will be crucial to maintain the stability of the basin and to ensure a strong and steady flow in the rivers. Therefore the surrounding forest should be preserved (Kadish, 2008).

5. Chapter 5: Advantages and Disadvantages

The presence of mining in Intag has always presented both an internal and external conflict, thus presenting several armed conflicts, demonstrations, blockades, etc. Although from the firm for the last project Intag - Junin conflicts have ceased being reduced to maximum a grievance by these people (Garbay, 2012).

This is because a large part of the population is engaged in artisanal mining and seeing the imminent presence of an international company like CODELCO these are your only job and income threatened by this company, besides that the unconformity produces CODELCO is the presence of potential environmental impacts that could result in large-scale mining activity (Garbay, 2012).

A large part of the population of Intag lately has been for the presence of CODELCO because according to the promises of President Rafael Correa of responsible mining with minimal environmental impact, part of the community believes in the words of the government (Garbay, 2012).

Carried out this project in its entirety Intag communities could reach its manifestations gives this being due to a full acceptance of the project or a simple surrender, although this still remains in many assumptions without foundation (Garbay, 2012).

Gradually some people from Intag believe and want this project and others simply see it as inevitable, and stating that if it was announced by the government is because it will be done no matter what (Garbay, 2012).

According to Narvaez there are and will continue to exist a grievance by people from the same community and even among families, this is due to the different interests of these because as some miners see it as a potential safe work proposed contract and all required the law, while others see it as a threat because they think they will only bring staff out of the area and they could lose their jobs and income producing artisanal mining them (M. Narvaez, personal statement, 24 January of 2014).

5.1. Advantage

Completion of the project Intag - Junin this could bring many benefits to the community but most of these may have been given not necessarily by mining and others could be in just promises.

Among the first advantages of taking Intag community will be the creation of roads and paving of existing ones, these roads would be first and up to two lanes but as said before this is one of the advantages that this community could have had no need of the presence of mining. These roads will be strictly constructed and improved for the passage of vehicles and heavy machinery alone could not be mobilized on a dirt floor and mud (Cezares, 2010).

Another improvement would receive the community with this project would be more revenue which would come from mining , the main advantage of these is that the community of Intag see him conducting the activity in the area, these revenues would generated from material purchase places like food , lodging or jobs producing activity (Cezares, 2010).

Figure 3: The level of economic estimation

Source: (Kocian et al., 2011)

Due to the energy consumption by mining the power distribution networks will increase to Intag, increasing street lighting, providing electric service to areas that previously didn´t have this, so expanding the infrastructure of the community Intag (Kocian et al., 2011).

With this proposal by the “ Consorcio Toisan" call HidroIntag which would be the creation of 10 micro hydroelectric dams in this area, in order to generate electricity for a value of $ 30 million a year making Intag self-sufficient region in energy sense, along with a possible sale of excess energy, thus increasing capital income to the community. To achieve this, the surrounding forest and should not be altered for the use of the tributaries or rivers (Kocian et al., 2011).

In Ecuador it was agreed that CODELCO will have to pay an annual fee recovery to preserve their mining concessions. During the initial exploration phase the initial annual fee was set at 2.5% monthly minimum per hectare and equaling USD $ 6.50. This fee is doubled in the advanced exploration stage and will double again in the exploitation phase. Facilitating the remediation of areas affected by this activity (Kocian et al., 2011).

5.2. Disadvantages

The disadvantages of this project are varied and depend on the sector that affects and these can be environmental, economic or social.

One of the biggest disadvantages of the project is to be open-pit mining that entails many consequences to the area. The destruction of large areas for the construction of the mine and this extension can vary but are usually 5km2 and a depth up to 1km (Serra et al, 2003).

For the construction of pits or craters on the structure of the first mine must extract all surface organic layer to subsequently extract the different profiles of the ground to the desired depth with mineral find. For these processes requires the introduction of excavators and construction equipment (Serra et al, 2003).

When meeting with rocky material is necessary to use explosives to keep digging towards the ore using explosives varies depending on the density of the rock material, but equally great damage generated as surrounding areas feel it as earthquakes both large and small but equally harmful to the construction of low quality of poor people in the area and generate noise pollution, it disrupts and alters the animals from the area (Serra et al, 2003).

Another disadvantage is that copper is not in pure composition but mixed with other minerals and compounds which are required to separate different methods among which is the use of solvents , the solvent used in this case is the sodium cyanide , which is extremely toxic to any living being. The problem of the use of this substance is to be dissolved in water to add later obtained copper and so segregate obtaining high purity copper, the residue in water is usually dispatched in tributaries near the mine these being transported by water and taking them other sectors, plus you may be a spill of this equally polluting the ground (Serra et al, 2003).

In the reaction for removal of copper by use of cyanide can be present in different amounts volatilization of the compounds bound to the copper, including heavy metals such as lead, arsenic and antimony, which become environmental pollutants (Serra et al, 2003).

Volatilized heavy metals have the property of being highly carcinogenic beings exposed here Intag community as the flora and fauna of the area, not to mention the pollution of soil and water previously explained (Kocian et al., 2011).

Another major pollutant produced is the release of sulfuric acid which is the product of smelting copper ingots to form and transport, sulfuric acid to reach the atmosphere it reacts with water vapor and precipitated in acid rain called the which further acidify the soil produces great damage to the flora of the region and damage to man-made structures (Kocian et al., 2011).

For every ton of rock and soil, a typical copper mine produces 3-4 pounds of copper, zinc five ounces, three ounces of lead and two ounces of arsenic. Besides this the layers of earth, rock and soil extracted generate a significant volume that has to be transported to other places, discarding in areas surrounding the mine thus changing the topography and the tributaries of surface and underground water (Kocian et al., 2011).

Energy use is of great importance in mining, although excessive energy expenditure occurs. Chile for example allocates 33 % of national energy mining in our country which can produce an energy crisis as Chile suffered in addition to producing a competition for the use of electrical energy between the mining and the community (Kocian et al., 2011).

Even counting the financial remuneration received by CODELCO for the remediation of the environment this may not be sufficient to treat the contaminants completely and efficiently (Kocian et al., 2011).

Figure 3: Examples of remediation costs.

Source: (Kocian et al., 2011)

But the biggest disadvantage and damage caused by this activity in Intag is deforestation and destruction of natural habitats nearby, Intag has remained sustainable thanks to its economy from tourism among them are: thermal pools, bird watching, rafting, cycling and generally enjoying the countryside. The reservation "Los Cedros" which generates an average of 500 visitors a year at its most researchers will be the most affected (Kocian et al., 2011).

Figure 4: Current attractions.

Source: (Kocian et al., 2011)

6. Conclusions

The mineral potential of Ecuador gives the country the opportunity to become a major supplier of several minerals that requires industrial development of the richest economies in the world and cover some of the areas of domestic demand for minerals (Chérrez, 2009).

In one side, the government, business sectors and, urban and rural population, support the view of exploiting the mineral wealth of the country as a means to provide income to overcome poverty, expanding health care coverage and correct service existing economic and social inequalities (Chérrez, 2009).

But in the other side, indigenous peoples and nationalities , organizations , environmentalists and population living in cities and in the countryside, have expressed their opposition to the large-scale mining for their impacts on nature and adverse effects on historical continuity of indigenous peoples living in territories that could abruptly be modified by mining(Chérrez,2009).

As Cecilia Chérrez, President of Ecology Action, says that: These fight between Government and People against mining, leave to us a serious reflection or promote a democratic and transparent debate, have been the subject of scorn and disqualification from government authorities, who finally, and even express constitutional provisions as violating the consultation informed, transparent and "good faith “, have imposed the beginning of large-scale mining activities under the premise of achieving the " collective good "(Chérrez, 2009). Finally the situations is that the open-pit mining is now on production. Now the population that lives in Intag knows about the project and the government is including that people on many work places, also this contribute for the growth of economy and the ¨development¨ of the entire Ecuadorian society.

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Annexes

Picture1.

Toro, S. (Photograph). (c.2014). “Picture 1”. (Photography). Ibarra-Ecuador.

Picture 2.

Toro, S. (Photograph). (c.2014). “Picture 2”. (Photography). Ibarra-Ecuador.

Picture 3.

Toro, S. (Photograph). (c.2014). “Picture 3”. (Photography). Ibarra-Ecuador.

Picture 4.

Toro, S. (Photograph). (c.2014). “Picture 4”. (Photography). Ibarra-Ecuador.

Picture 5.

Toro, S. (Photograph). (c.2014). “Picture 5”. (Photography). Ibarra-Ecuador.

Picture 6.

Toro, S. (Photograph). (c.2014). “Picture 6”. (Photography). Ibarra-Ecuador.

Picture 7.

Toro, S. (Photograph). (c.2014). “Picture 7”. (Photography). Ibarra-Ecuador.

Picture 8.

Toro, S. (Photograph). (c.2014). “Picture 8”. (Photography). Ibarra-Ecuador.

Picture 9.

Toro, S. (Photograph). (c.2014). “Picture 9”. (Photography). Ibarra-Ecuador.

Picture 10.

Toro, S. (Photograph). (c.2014). “Picture 10”. (Photography). Ibarra-Ecuador.