Resource World Magazine

62 www.resourceworld.com A U G U S T / S E P T E M B E R 2 0 1 4 e p i l o g u e D a v i d D u v a l O ver the years, I've seen first-hand the consequences of exposure to industrial pollutants. The risk of developing silicosis, a terrible disease caused by exposure to silica dust, has been virtu- ally eradicated from the Canadian mining industry. Today, protecting workers from industrial hazards is enshrined in law, with severe penalties meted out to companies that break the rules. The same can't be said for develop- ing countries where the human cost of resource extraction is generally secondary to profits. Indeed, this has become a sig- nificant political issue between developed and emerging economies where labour is cheap and plentiful. In China, among other places, silicosis, black lung disease (from coal mining) and exposure to hazardous chemicals and other agents is rampant. Western trading partners of these coun- tries generally overlook the impact of these industrial pollutants in order to maintain trading relationships. Nor are we averse to exporting our bad habits and practices in search of prof- its. Cigarette manufacturers have almost stopped marketing their products in developed countries, given the restric- tions put on advertising tobacco products and the strict age restrictions on purchas- ers. Motivated by profit, manufacturers continue to promote these products in the developing world where the health effects are not widely understood and con- sumer protection regulations are poor or non-existent. Today we hear a lot about "wealth inequality" and the growing earnings gap between rich and poor. Yet we pay scant attention to the "health effect" where products known to be hazardous to health in advanced economies are nega- tively impacting the well being of those in emerging economies. Recently, I noticed an article about arti- sanal miners in Peru and the impact of mercury pollution on local watersheds and nearby populations, mostly indigenous peoples. None of this was surprising to me as I've seen similar operations in Latin America and Tanzania where artisanal vil- lages sprout up almost overnight when a gold find has been made. Begrudgingly perhaps, one has to admire their ability to innovate; I've seen ball mills made out of oil barrels and sluicing systems assembled from scrap lumber, pieces of galvanized roofing and old blankets. What shocked me most about this par- ticular story was the picture of a young child, a girl, aged perhaps about six, play- ing in a swamp that was used to contain discharge from a small alluvial mining and gold recovery operation located nearby. As is common practice, in these types of operations, the artisanal miners were using mercury to prepare a crude amalgam containing gold which was subsequently burned off, leaving semi-refined metal. As a matter of interest, inhaled gaseous mercury is absorbed into the bloodstream and once in the circulatory system, it can pass through the blood-brain barrier and accumulate in the brain, damaging the central nervous system. This is a conse- quence these miners risk in order to earn a few dollars each day. In the case of Peru, Brazil and Colombia, large concentrations of mercury are find- ing their way into the Amazon River system and human food chain which will impact perhaps millions. For the coun- tries involved, there are no easy solutions given the fact tens of thousands of people are dependent upon the income these operations have to offer. Heavy handed solutions to the problem by governments would likely incite civil insurrection in many areas. Perhaps controlling the sale and distri- bution of mercury in the countries affected would help solve the problem. Imports would have to be regulated from major producers including China which is the largest mercury producer by far. Last January, the government of Peru brought in strict new laws to fight illegal gold mining practices that use mercury. Indeed, they have closed 13 illegal mills in southern Peru – six near Nazca and seven in the Chala area. Meanwhile, two Canadian companies have stepped up to the plate and are doing something about the problem of Peruvian artisanal miners using mercury. The most advanced company, Dynacor Gold Mines Inc. [DNG-TSX], produced 6,810 ounces of gold in May at its Huanca gold and silver ore processing plant (250 tpd) near Nazca. Officials from the Peruvian Ministry of Mines recently inspected the Huanca plant and concluded that it was fully compliant with Peruvian mining regulations. In addition, the com- pany is in the permitting stage for a second plant – its $10 million Chala processing facility. Another Canadian company, Standard Tolling Corp. [TON-TSXV], formerly Orovera Resources, has been in talks with the Peruvian government and has been investigating potential acquisitions in order to establish toll-based processing plants. Peru is not the only country where ille- gal mercury-based processing takes place; however, it's good to see some progress taking place. n Mercury contamination in developing world deserves attention from international community

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