Identifier
Created
Classification
Origin
09BRASILIA330
2009-03-17 19:10:00
UNCLASSIFIED
Embassy Brasilia
Cable title:  

GOLD MINING POSES HEALTH, ENVIRONMENTAL RISKS IN GUYANA

Tags:  SENV EMIN EAID TBIO SOCI BR XR 
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DE RUEHBR #0330/01 0761910
ZNR UUUUU ZZH
R 171910Z MAR 09
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC 3812
INFO RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE
RUEHPO/AMEMBASSY PARAMARIBO 1774
RUEHPE/AMEMBASSY LIMA 4153
RUEHSG/AMEMBASSY SANTIAGO 0894
RUEHQT/AMEMBASSY QUITO 2714
RUEHAC/AMEMBASSY ASUNCION 7442
RUEHRG/AMCONSUL RECIFE 9250
RUEHSO/AMCONSUL SAO PAULO 3731
RUEHRI/AMCONSUL RIO DE JANEIRO 7442
RUEATRS/DEPT OF TREASURY WASHDC
RHEBAAA/DEPT OF ENERGY WASHDC
RUEHC/DOI WASHDC
RUEAWJA/DOJ WASHDC
RUEAEPA/HQ EPA WASHDC
RUEANAT/NASA HQ WASHDC
RUCPDC/NOAA WASHDC
RUMIAAA/USCINCSO MIAMI FL
RUEHRC/USDA WASHDC
RUCPDOC/USDOC WASHDC
UNCLAS SECTION 01 OF 03 BRASILIA 000330 

SIPDIS

DEPT PASS USAID LAC/RSD,LAC/SAM,G/ENV,PPC/ENV
INTERIOR PASS USGS INTERNATIONAL: JWEAVER
NSF FOR INTERNATIONAL: HAROLD STOLBERG

E.O. 12958: N/A
TAGS: SENV EMIN EAID TBIO SOCI BR XR
SUBJECT: GOLD MINING POSES HEALTH, ENVIRONMENTAL RISKS IN GUYANA
SHIELD

REF: (A) 2004 PARAMARIBO 259,
(B) 2004 PARAMARIBO 377,
(C) 2004 PARAMARIBO 411

BRASILIA 00000330 001.2 OF 003


UNCLAS SECTION 01 OF 03 BRASILIA 000330

SIPDIS

DEPT PASS USAID LAC/RSD,LAC/SAM,G/ENV,PPC/ENV
INTERIOR PASS USGS INTERNATIONAL: JWEAVER
NSF FOR INTERNATIONAL: HAROLD STOLBERG

E.O. 12958: N/A
TAGS: SENV EMIN EAID TBIO SOCI BR XR
SUBJECT: GOLD MINING POSES HEALTH, ENVIRONMENTAL RISKS IN GUYANA
SHIELD

REF: (A) 2004 PARAMARIBO 259,
(B) 2004 PARAMARIBO 377,
(C) 2004 PARAMARIBO 411

BRASILIA 00000330 001.2 OF 003



1. SUMMARY Artisanal small-scale gold mining (ASGM) has seen
exponential growth in the South American countries of the Guyana
Shield (Guyana, Suriname, French Guyana, Venezuela, Brazil) since
the early 1980's, owing to dramatic gold price increases and limited
government presence in the remote interior regions. According to
the United Nations Environment Programme (UNEP),ASGM has become the
world's largest source of mercury emissions in the environment.
Although artisanal mining may bring employment and income to
impoverished areas, the environmental and health consequences of
unregulated gold mining are severe, including: deforestation,
mercury pollution, public health deterioration, and social conflict.
Furthermore, illegal mining promotes a culture of lawlessness,
contributing to regional instability via ancillary illicit
activities. END SUMMARY.

--------------
GOLD MINING IN THE GUYANA SHIELD
--------------

2. The Guyana Shield currently ranks among the fastest-growing gold
production regions in the world, following only Peru and Indonesia.
Over two million square kilometers of geologic Precambrian rock
extend west across the Shield from Venezuela into Guyana, Suriname,
French Guyana, and south into Brazil, offering access to an exposed
greenstone with rich deposits of gold, diamonds, iron, and bauxite.
The prospect of getting rich quick has inspired small-scale gold
miners to flock to this sparsely populated region with porous
borders and rainforests that rank among the world's most
biodiverse.


3. The Guyana Shield experienced a gold rush revival starting in
the 1980's in response to rising gold prices that followed
abandonment of the Bretton-Woods fixed gold price of USD35 per ounce
(oz). Gold prices rose to nearly USD400 per oz in the 1980s and
1990s, climbed to USD600 in 2006, and reached as high as USD1000 per
oz in 2008 and 2009. Correspondingly, the region witnessed

exponential growth in small-scale gold mining focused on the 'mass
exploitation of lower-grade gold deposits', according to David S.
Hammond, an international forestry consultant.


4. Although some larger mining companies have entered the gold
market, the region remains dominated by small-scale mining, which
has proven a compelling alternative to widespread unemployment.
However, much of the gold extracted from the interior of these
Guyana Shield countries remains a part of the informal sector,
contributing little to government tax bases (REFTEL A).


5. Artisanal mining has created a 'Wild West' sub-culture in the
Guyana Shield interior, bringing alcoholism, prostitution, disease,
crime and other illicit activities, according to Marcello Veiga, a
regional specialist on ASGM. Serious health, safety and security
issues radiate beyond the immediate mining environment, eroding the
broader financial benefits achieved by gold extraction.


6. Accurate information on official and illicit mercury trading is
not available; however, the UNEP Global Mercury Project estimates
metric tons of annual average mercury consumption (i.e.,
environmental loss) in the Guyana Shield to be: Brazil-45, French
Guyana-7.5, Guyana-15, Suriname-7.5, Venezuela-15. Other sources
quote figures 4 to 5 times higher. Information gleaned from
Surinamese sources in 2004 reported mercury quantities in the range
of 20 to 40 tons per year (REFTEL A). French Guyana, Suriname and
Venezuela (countries with active ASGM activity) report to UNEP no
official trade in mercury, making estimates of mercury use extremely
difficult.

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--------------
ENVIRONMENTAL IMPACT ON GUYANA SHIELD
--------------

7. Mining of low-grade gold deposits involves forest clearing and
hydraulic blasting of river banks with high-powered water cannons to
expose potential gold-containing gravels. In most cases, gold ores
are then concentrated by settling before amalgamation with mercury,
and final conversion to gold product via mercury heat vaporization.
Mining specialists estimate that 1 to 3 grams of mercury are lost to
the environment for each gram of gold recovered (USGS).


8. The Brazilian Oswaldo Cruz Institute blames small-scale mining
for deforestation, mercury contamination of rivers, transmission of
malaria, HIV and other diseases, cultural erosion and social
conflict. Blacksmith Institute and the Green Cross indicate ASGM as
one of the world's Top Ten Worst Pollution Problems,
http://www.worstpollution.org . In 2005, Venezuela's Minister of
Environment commented that it will take over 70 years to
decontaminate areas polluted by mercury and 300 years to re-plant
destroyed forests, suggesting long-term impacts on climate as well
as local ecosystems.


9. Although ASGM may create employment and income for marginalized
populations in impoverished areas, the lack of regulatory
enforcement threatens the long-term productivity of the region due
to environmental degradation, riverine mercury contamination and
consequent health impacts. Hardest hit by transient mining
activities, are the Amerindian (indigenous) and Maroon forest
communities that benefit nominally from the financial gains of
mining but bear the weight of environmental and social costs.


10. Guyana and Suriname are especially vulnerable to the
detrimental environmental and health impacts of ASGM, having few law
enforcement resources to regulate small-scale miners effectively or
protect affected populations. COMMENT: In an industry known for
'liquidation' of resources rather than sustainable use, ASGM in the
Guyana Shield is likely to continue until deposits are exhausted.
END COMMENT.

--------------
HEALTH IMPACTS OF SMALL-SCALE GOLD MINING
--------------

11. Mercury's well-documented bioaccumulation (concentration in
animal tissues) up the food chain poses a significant health risk to
Guyana Shield residents that rely on freshwater fish as their
primary protein source. Predatory fish, at the top of the riverine
food chain, are routinely found with mercury concentrations that
exceed the recommended WHO mercury limits of 0.5 micrograms per gram
of fish, according to Jan Mol (2001) and other Surinamese
researchers. Elevated mercury levels in Atlantic fish have also
been detected in Mol's research, raising questions about the impacts
of ASGM on marine fisheries.


12. Decades of research have documented that mercury accumulation
in humans causes neurological damage, birth defects and sensory
impairment (UNEP). In the Guyana Shield, researchers have only
recently begun testing of mercury content in the hair, blood and
urine of infants and mothers in affected communities (REFTEL B,C).
Doctors are also gathering evidence of the rising incidence of birth
defects, mental retardation and mental impairment. Most directly
affected are downstream Amerindian and Maroon forest communities;
however, Guyana Shield tributaries also drain to coastal cities,
threatening to leave a legacy of mercury poisoning, decreased mental
abilities, birth defects and decreased human potential across the
region.


13. As to other health concerns, poorly managed mining camps often

BRASILIA 00000330 003.2 OF 003


results in the presence of stagnant wastewater pools ideal for
mosquito breeding. Mining camps become hotspots of mosquito-borne
diseases such as malaria and dengue, and the migrant labor force
facilitates disease transmission from one community to the next.
Prostitution and HIV are also consequences of a transient labor
force with short-term profit motives.

--------------
BRAZILIAN GARIMPEIROS
--------------

14. Migrant mine workers, many from Brazil, clandestinely cross
porous country borders of the Guyana Shield countries, often
introducing new mining methods, equipment and cash. Just as often
however, AGSM operators contribute to the contamination of local
areas without consideration of long-term effects of mercury
pollution on local populations. Some Guyana Shield governmental
officials attribute lawlessness in mining camps to the transient
labor force. Recent WWF reports indicate active (legal and illegal)
garimpero (Brazilian miner) populations of 30,000 in Guyana, 30,000
to 60,000 in Suriname, and 10,000 in French Guyana.


15. Migration of Brazilians has been driven by crackdowns on
illegal gold mining and enforcement of tribal land integrity in the
Brazilian Amazon, the lack of border controls, and the relative lack
of mining regulatory enforcement in the interior regions of the
Guyana Shield.


16. COMMENT: In light of growing international agreement on the
need for mercury emission controls, countries of the Guyana Shield
are likely to encounter increasing global pressure to gain control
over the historically unregulated ASGM sector. Already, Brazil and
French Guyana have signed an agreement intended to help them work
together to reduce the rampant illegal gold mining that devastates
forests and poisons populations in their border region. Government
officials in Guyana Shield countries claim, however, that national
resources are not available to enforce regulations related to ASGM
and mercury emissions (press reports, REFTEL A). Even today, the
environmental damage and public health risks associated with ASGM
mercury use have not been considered sufficiently high priority to
warrant action. Furthermore, news reports indicate that Guyana
Shield government and industry leaders believe international efforts
(e.g., UNEP, EU) to limit mercury trade are unlikely to affect their
local mining industries in the short term. Until these governments
prioritize the protection of public health and environmental
resources, there is little chance that progress will be made towards
reducing poverty, improving employment conditions, improving
national security in interior and border regions, and raising the
overall national income for future generations. END COMMENT.


17. This cable was drafted in coordination with U.S. Embassies in
Brasilia, Georgetown and Paramaribo.

KUBISKE