systemicdisorder | Yet another standoff between clean drinking water and mining profits has taken shape in Colombia, where two corporations insist their right to pollute trumps human health and the environment. As is customary in these cases, it is clean water that is the underdog here.
Two million people are dependent on water from a high-altitude wetlands, which is also a refuge for endangered species, that a Canadian mining company, Eco Oro Minerals Corporation, wants to use for a gold mine. The wetlands, the Santurbán páramo in the Andes, has been declared off-limits for mining by Colombia’s highest court due to the area’s environmental sensitivity. Eco Oro is suing the Colombian government because of this under the Canada-Colombia Free Trade Agreement.
The dispute will likely be heard by a secret tribunal that is an arm of the World Bank, even though the World Bank has provided investment capital for Eco Oro to develop the mine.
Eco Oro has not said how much money it intends to ask for, but another mining company, the U.S.-based Tobie Mining and Energy Inc., has separately sued Colombia for US$16.5 billion because the government refused to allow it to establish a gold mine in a national park. To put that $16.5 billion in perspective, the total represents more than 20 percent of Colombia’s budget.
To the north, El Salvador is still awaiting the decision of another secret tribunal in a case heard in September 2014. An Australian mining company, OceanaGold, sued El Salvador for $301 million because it was denied a permit to create a gold mine that would have poisoned the country’s biggest source of water.
Under “free trade” agreements (which have little to do with trade and much to do with enhancing corporate power), governments agree to the mandatory use of “investor-state dispute mechanisms.” What that bland-sounding phrase means is that any “investor” can sue a signatory government to overturn any law or regulation it does not like because the law or regulation “confiscates” its expected profits, with no limitations on who or what constitutes an “investment.” These cases are not heard in regular judicial systems, but rather in secret tribunals with no oversight, no public notice and no appeals. The judges who sit on these tribunals are corporate lawyers whose regular practice is representing corporations in these types of disputes.