NY Times Multimedia – 3 part Series
By Jane Perlez
The Cost of Gold: 30-Tons an Ounce
The price of gold is at a 17 year high and the demand of gold has gone up. This demand for gold has caused many problems and a gold mining team from NY Times visited sites in U.S., Africa, and Latin America to help understand the consequences of gold mining. Gold creates huge costs: environmental damage, social upheaval, families in poor countries are forced to move off their land and make way for open mine pits. The gold companies say they do their best to make sure that poor countries are helped by their presence by helping spur economic growth, helping with schools and medical clinics for communities. Some say the environmental consequences of mining makes “today’s gold, dirty gold.”
It is often questioned what happens to a gold mine after it closes, one example is in Montana. Cyanide is used to help mine the gold and has been leaking into the ground, coming into contact with the underlying sulfite rock. The state is working on a fund to help treat polluted water coming out of the mine.
In Guatemala, a Canadian company built a mine that has caused great opposition. A town bishop is fearful that the mine will take water away from the farmers. They took some of the farmers out of town and traveled to another mine. Many came back quite upset stating that the land looked horrible. Next month, the mine is ready to start production.
Ghana in West Africa, is the newest area being mined for gold. This was the home of the Ashanti civilization that was known for their use of gold. The workers search for gold in waste, scooping it up in buckets, washing and then taking it to be treated with mercury. The World Banks is helping to finance the project. More than 8,000 people have been displaced by this new mine. The company feels they have done no wrong stating they paid compensation to farmers and built homes for those that were left. Gold mining can be done responsibly but as of yet it has not been done that way.
Facts: an ounce of gold can require the removal of more than 100 tons of rock.
The Cost of Gold: The Treasure of Yanacocha The Yanacocha mine in Peru is the world’s most productive gold mine. The NY Times went to Peru to see how it works. The Yanacocha mine is located in the Andes, where the Spanish came more than 500 years ago and captured the Inca and took their gold. Today, a Denver based company, Newmont, has been operating the mines in Peru. They have extracted 7 billion dollars in gold by digging open pit mines. This mining blasts and excavates large quantities of land and the dirt is later moved and treated for cyanide. Five Hundred tons of earth is moved every day at this mine. By the time the mine is closed, Newmont will have moved 1 billion tons of earth to get the gold. The use of cyanide in gold mining is used to separate the gold from its ore. The biggest problem for the mining company was the people who lived around the mine, peasants and farmers. They became angry because their water source was being polluted by metals coming from the mine. The villages also considered the land sacred and thought that the mine was sacrilegious. They said that their animals would not drink the water and some died. In 2002, 2,000 fish died in a hatchery that was close to the mine, this was caused by sediment from the mine.
A village priest helped bring this to the forefront – he said mining leaves too many in poverty, mainly women and children. He also began to help them fight the mines that were too close to their property. The priest stated that the landscape was being destroyed, “we are losing our valley, the mountains are on one side one day and the next they are gone completely, the lagoons have disappeared.” Brant Hinze is the main person in charge of the Yanacocha mine, his main job is make mine run efficiently and make sure none of the gold is stolen. When N.Y. Times was there they had poured their 19th million gold bar. Brant Hinze said that they exceed industry standards when it comes to the environment. He states that 66% of employees are from the nearby town; they make good wages and are now for the first time able to send their children to universities. He said his company sees the value in the gold and the neighboring people see it as opportunity.
Last year was a huge problem for the villagers, the mining company got permission to drill onto one of the villages sacred mountain, Cerro Quillsh. The peasants began a blockade of the mine, people were arrested and injured. The mining company had finally apologized for what they had done, stating that they did not fully understand what it meant. In order to keep the peace, the mining company will spend about 7 million dollars on social programs. The priest stated that he would not be satisfied until the mining company made the mountain a natural reserve – this would show that they truly had respect for the people in the villages.
Additional Mining Info: Rock that is blasted can cause pits that are several thousand feet deep and a mile or more across. Cyanide breaks down in sunlight, and leaks and spills from mines, flow into rivers killing fish and creating pollution. Additives used during the refining process can result in the emission of nitrogen oxides, a major cause of acid rain.
Questions on the Cost of Gold This last section of Jane Perlez’s three part series is a question and answer format in regards to gold mining. One interesting questions commented on how many children work in gold mines and under what conditions? Perlez answered that for the most part they did not see any children – the workers are mostly men, but in some places women are truck drivers. Although in some gold mines in the Congo, it has been said that children have been known to work there, but that cannot be confirmed.
One question that got my attention was in regards to how to buy jewelry in an environmentally and socially responsible way? This was answered by the fact that there are no guarantees as of now. A standard has not been agreed upon by the industry.
From these articles, it is evident that gold mining is a hazard to the environment and its surrounding people. When first researching “blood diamonds,” I was disheartened to learn the horror that went along with diamond mining, and once again I am shocked to learn that gold mining is also causing great harm to the environment and people. It has left me with a negative feeling towards diamonds and gold – making me question why do I want to make jewelry and what is my part in this damage and upheaval. It is quite sad that no standards are in place to keep land, animals and people safe – best we can do is find alternatives for these stones and metal and help spread the word.
http://www.nytimes.com/2005/10/26/international/26gold-questions.html