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WORLDWIDE FOREST/BIODIVERSITY CAMPAIGN NEWS

Guyanas: Update on Mining and Logging

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Forest Networking a Project of Ecological Enterprises

December 17, 1995

 

OVERVIEW & SOURCE

The World Rainforest Movement reports on continuing threats to

Guyana and Suriname from large industrial forestry and mining

operations.  There is a large campaign to protect the still intact

forest ecosystems found in these countries while working to bring

meaningful development to its inhabitants.  This item was posted

in econet's rainfor.general conference.

g.b.

 

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/** rainfor.genera: 141.0 **/

** Topic: GUYANAS: UPDATES ON MINING AND LOGG **

** Written  3:03 PM  Dec 14, 1995 by gn:wrm in cdp:rainfor.genera

**

From: Forest Peoples Programme <wrm>

Subject: GUYANAS: UPDATES ON MINING AND LOGGING

 

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                  WORLD RAINFOREST MOVEMENT

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8 DECEMBER 1995

                                                                               

 

                NEWS REPORTS FROM THE GUYANAS

 

 

         GUYANA : TIMBER CONCESSION FREEZE HOLDS, JUST.

 

Environmentalists received a scare last month, when President

Cheddi Jagan of Guyana announced to the local press that the

multilateral development banks had given him the green light to

hand out more logging concessions to foreign companies. Aid

agency officials panicked - Guyana already has some 8.7 million

hectares under concession, far more than the over-stretched

forestry commission can handle - and new concessions would be

against agreements that the Government has signed with them.

Telephone lines from Washington and London hummed with anxiety

while the truth was disentangled. Was it coincidence that the

announcement was made while the head of the national forestry

commission - a known supporter of the concession freeze - was out

of the country,  attending the International Tropical Timber

Council meetings?

 

The reality is somewhat more reassuring. Malaysia's sixth largest

conglomerate, the Berjaya Group, has through partnership with a

local company called Case Timbers, gained rights to an existing

217,000 acre concession, between the Upper Berbice and the

Essequibo, previously held but not exploited by the local firm

UNAMCO. Berjaya has promised to inject some US$15 million into

extracting and processing the timber. Just to the north, the

Singapore-based Prime Group, masterminded by Alex Ling Lee Soon

of Forest Resources Management, has taken over Demerara Timbers

Ltd which has the neighbouring 800,000 hectare concession. In

exchange the Prime group has been persuaded to relinquish its

rights to some 600,000 hectares on the Middle Mazaruni, to which

it had an anomalous 'exploratory' timber permit (no such permit

exists in Guyanese law!). The Prime Group has accepted the

continuing presence of the Dutch forestry research programme,

Tropenbos, within its concession.

 

The question remains - why was Jagan's press announcement so

inaccurate? Environmentalists and aid agency officials believe he

was testing world reaction to see whether anyone really cares

what happens in the interior. He can rest assured: the world is

watching and the aid agencies seem serious about getting control

of the run-away timber industry.

 

Meanwhile, some gains have been made by the Amerindians. Case

Timbers has had its concession in the Upper Baramita revoked - it

overlapped half the Carib Indians' reserve, created in 1977. The

Barama Company Limited has also agreed to excise the other half

of the Carib reserve from its concession. The Caribs only problem

is that their reserve is still covered by a gold prospecting

licence issued by the Geology and Mines Commission to the

Canadian transnational CANARC, which also has prospects and mines

in Venezuela, on the Upper Cuyuni, and on the Sara Creek, in

Suriname. In Guyana, CANARC is using the local consultancy firm

SEMCO to broker a deal with the local Caribs, whose own gold

mines are thus threatened with closure.

 

                 GUYANA: ROAD GOES AHEAD

 

The controversial Boa Vista to Georgetown road is under

construction again. With minor funds from the Guyana government,

a laterite trail is about to be constructed by the Guyana Defence

Force to link the road system of Demerara Timbers Limited, which

connects to Georgetown through Mabura Hill, to the existing road

up from Brazil which terminates on the Essequibo at Kurupukari.

NGOs have long called for an environmental impact study on the

road, to be published and subject to national debate, before the

road be completed - a demand heeded by the World Bank, which last

year financed the assessment. However, although the study was

completed in April 1995, by the British company Environmental

Resource Management (ERM), the document has never been made

public - is this because the mitigation measures advised by the

ERM, which included titling Amerindian lands, are viewed as

inconvenient? Brazil has now offered to build a bridge across the

Takutu river on the border. An all-weather road for four wheel-

drive vehicles will thus be open by the end of next year if

Government plans succeed.

 

  GUYANA: IWOKRAMA RAINFOREST PROJECT MAKING SLOW PROGRESS ?

 

A legal bill is soon to be set before the National Assembly

formalising the establishment of the 360,000 hectare experimental

tropical forestry project in southern Guyana. The officially

named 'Iwokrama International Rain Forest Programme' was

announced by previous President Desmond Hoyte in 1989 and

received preliminary support from the Commonwealth Secretariat,

UNDP, the Global Environment Facility and Britain's ODA. But

delays in formalising the project and establishing its research

programme have led to donor fatigue.

 

When it was first announced the project was criticised as a

diversion from the main environmental concerns in the country,

which were runaway mining and logging, unplanned road

construction and lack of recognition of Amerindian rights. The

project was also criticised for having been developed without any

kind of consultation with the Amerindian communities and no

provisions to secure their 'intellectual property rights' - their

herb lore was to be the subject of a much-touted bio-prospecting

operation. The project has responded to some of these criticisms,

while nationally some progress has now been made in getting

logging and road-building under control. Under the new Bill

establishing the programme, existing Amerindian legal and

traditional rights are fully protected and the programme is

obligated to adopt procedures for recognizing and rewarding local

communities' contributions and intellectual knowledge.

 

However, other critics in Guyana have complained that the draft

Bill, which is interpreted as giving the land to the programme in

perpetuity, establishes a 'State within a State', to be run by

international civil servants on tax-free salaries and a board of

trustees who have absolute authority within the programme area.

Clear mechanisms to ensure that Guyanese citizens benefit from

the programme and that it is accountable to parliament are thus

being advocated, while the term of the lease may now be

restricted to 50 years. Other Guyanese have welcomed the presence

of the programme as it may help control traffic along the near-

completed Boa Vista-Georgetown road. Although the Bill excises

the road itself from the authority of the programme, some kind of

collaborative regime between the government and the programme is

envisaged for regulating traffic. To this end, the Government has

already announced that it will establish a 35-man customs, army

and police post at Kurupukari.

 

The project site overlaps the territories of a number of

Amerindian communities who use the area to hunt, fish and gather

forest products, as well as for small-scale mining. One community

of some 20 houses, Fairview, across the river from Kurupukari,

falls right within the reserve and presently lacks title to its

lands. The challenge for the staff is now to find an effective

way of recognising these peoples' rights and ensuring they

benefit from, and have a say in, the running of the progamme.

 

           SURINAME: MINING DISPUTE STILL UNRESOLVED

 

The conflict between Golden Star Resources Ltd (GSRL) and the

Saramaka Maroons who live near the Gros Rosebel gold-mining

prospect remains tense. After the small-scale mines near

Koolhoven were closed in January, when the Maroons were

threatened with air-strikes if they refused to leave, attention

has shifted to the Nieuw Koffiekamp area. A heavy military

presence has been put in place to patrol the prospecting zones

and the local people complain of being shot at and prevented

having access to both their forests and small-scale mines.

 

The community of Nieuw Koffiekamp has already experienced forced

relocation to make way for SURALCO's dam at Brokopondo in the

1970s. They fear they will now be evicted again to make way for

'Suriname's Omai'; a joint venture between GSRL and Cambior Inc.

is being negotiated.

 

Under pressure from the Saramaka, therefore, the Government has

set up a commission brokered by the Organisation of American

States to listen to their complaints and try to find an amicable

solution to the land conflict. In the course of these discussions

the Government has offered alternative land - in the form of an

'economical zone' some 20 kilometres away - to the people of

Nieuw Koffiekamp, if they will agree to move.

 

Granman (Saramaka chief) Sengo Aboikoni notes that the problem

that the Saramaka face at Nieuw Koffiekamp is the same as that

faced by all the interior peoples of Suriname: they have no

legally recognised land rights and the government is seeking to

impose logging and mining concessions without their consent. 'We

need title to our lands and our 'economical zones' first before

the Government invites in foreign companies' he said, noting that

his people wanted the support of foreign governments in their

struggle and that they fear a repeat of their experience with the

Brokopondo dam. 'The Government doesn't pay attention to these

things' he noted 'that's why we held the Gran Krutu (the first

General Assembly in Suriname bringing together all the Maroon and

Indigenous peoples of the interior held in August this year) to

seek a solution to these problems. But the Government just got

angry with us as a result of the Gran Krutu, they see us as the

cause of a lot of trouble. The Government needs to understand

that now that we have schools and education in the interior we

are able to express ourselves to them. The Government should not

be angry now that the people of the interior can speak up for

themselves.'

 

Local GSRL head Peter Donald refused to meet with a World

Rainforest Movement representative visiting Paramaribo, referring

him to GSRL's head office in Denver. On the telephone, Mr

Ardjomandi of GSRL noted that the company has not yet decided

whether the mine should go ahead or not. The negotiations with

the Saramaka had been demanded by the people he noted and had the

aim of ensuring that whatever happens the people will not suffer.

GSRL has pointed out previously that it is the Government of

Suriname which has legal responsibility for the welfare of the

Saramaka and issues such as land rights and compensation.

 

However, legal controls on mining in Suriname are very weak.

Under the 1986 Mining Decree companies are required to use

'appropriate technologies' having 'due regard to...the need to

protect eco-systems' and to clean up or restore mined areas 'to

the satisfaction of the Minister' when they finish. Under the

act, a working plan to restore mined lands should be filed with a

mining application. Going beyond the legal requirements, the two

bauxite companies, SURALCO and Billiton (GENCOR) do now carry out

Environmental Impact Assessments (EIA) of new developments but

these are not made public. More seriously, the Government

entirely lacks the capacity to monitor compliance with mining

agreements independently.  

 

Despite the weakness of the law, the Government has required some

new investors to carry out EIAs, an obligation they imposed on

GSRL, which last year contracted RESCAN of Canada to carry out a

baseline study. GSRL says that a further EIA will be carried out

once they have decided that the prospect is worth developing.

 

     SURINAME: SURALCO TO MINE WANE CREEK NATURE RESERVE

 

Two beautiful low hills in eastern Suriname near the MUNGO mining

area were declared a nature reserve a few years ago after mining

giant SURALCO, which had rights to the area, decided mining the

hills on either side of the Wane Creek would be uneconomic.

Changing ore supplies have now forced SURALCO to revise its

position and the reserve now faces obliteration through SURALCO's

ceaseless quest for bauxite. Such is SURALCO's haste that it is

now driving roads through the area without even waiting for the

results of the EIA that it has commissioned.

 

       SURINAME: NEW BAKHUIS BAUXITE MINE UNDER STUDY

 

Plans to develop the bauxite deposit at Bakhuis in western

Suriname are again under study. The mines were to have been the

centre-piece for a 'development pole', commenced by the Dutch in

1974, the goal being to create a new town and major port at Apura

on the Courentyne, connected by railway to the Bakhuis deposit.

The plan was dropped after independence as a result of which the

railroad has fallen into disrepair, being occasionally used to

ship gravel down to the port at Apura.

 

A team from international consultants MacKay and Schellman is now

carrying out a feasibility study to look into the possibilities

of reviving the programme, while Knight Piesold is carrying out a

preliminary environmental impact survey. The mine, if it goes

ahead, seems certain to affect some indigenous communities and

will require the clearance of substantial areas of rainforest. 

 

       SURINAME: LOGGING CONCESSIONS STILL IMMINENT?

 

Uncertainty surrounds the three one-million hectare concessions

promised to Asian companies by the Venetiaan government. Faced

with dissent from the interior peoples, who have demanded that

their own land rights be recognised first before foreigners get

logging rights, and under heavy presure from environmentalists

and aid agencies, the government is hesitating. President Enrique

Iglesias of the Inter-American Development Bank has offered a

US$25 million package to reform the timber industry and inject

desperately needed foreign exchange on condition that the

Government freezes the hand-out of concessions - but President

Venetiaan of Suriname has reacted dismissively : the offer, he

said, was 'eco-colonialism' and 'meddling' in Suriname's internal

affairs. What kind of colonialism and meddling he thinks foreign

logging companies carry out is not so clear. According to local

newspaper reports Suri-Atlantic, a front company for Indonesia's

shadowy Antang group, has grown impatient of delays and may have

faded from the running as backers look elsewhere to place their

investments. Meanwhile MUSA is said to be unpopular with the

government for employing opposition leader Desi Bouterse in its

timber poaching operations in Central Suriname. Berjaya remains

the most likely to get a concession, according to local

environmentalists, but its concession is also the most contested

as it overlaps the most territories of Maroon and Indigenous

peoples. Local observers speculate that the government is

delaying the concession handout because it cannot afford to

forfeit the vote of the interior peoples in the up-coming

elections, scheduled for May 1996. Ten seats in the National

Assembly are decided by the interior communities : the government

needs them if it is to maintain a majority.

 

However, in a gesture of reconciliation to Maroon and Indigenous

demands, President Venetiaan has also been reported as saying

that he will not give away forests to outsiders if the local

people are opposed. He warned the communities, however, that if

they reject the foreign companies they would have to fend for

themselves. Any development they wanted would have to funded from

their own resources. Local Berjaya representative Paul Yeong has,

according to local press, also said that the company will avoid

logging areas claimed by local communities. If the communities do

not want us we will log elsewhere, he is reported to have said.

 

Although the Venetiaan Government initially snubbed the Inter-

American Development Bank  it has accepted a technical support

project from the FAO. Working under a programme titled

'Strengthening National Capacity for Sustainable Development of

Forests on Public Lands', the four man team from the FAO is

looking to develop a series of projects for donor funding to

reform the government's capacity to regulate the timber industry.

The FAO is looking seriously at the possibility of developing a

legally authorised and autonomous 'Forest Management and

Development Authority' (previously refered to as a 'Timber

Institute') which would have the task of collecting revenue from

logging companies and overseeing adherence to their management

plans. The European Commission has already expressed an interest

in supporting such a body. Unlike the IDB, the FAO has set no

conditions to its support, and indeed seems to be working on the

assumption that the Berjaya company will eventually get its

concession. How they expect the new authority to have the

political strength to control the company's operations, if the

government couldn't even prevent it getting access to over 1

million hectares of forests, remains far from clear.

 

The proposed deal with the InterAmercan Development Bank may not

be dead, moreover. Recently, President Venetiaan wrote a belated

reply to the IDB offer. It remains to be seen whether he will

accept the IDB's conditions of a freeze in the hand out of

concessions.

 

For further information contact: Forest Peoples Programme, World

Rainforest Movement, 8 Chapel Row, Chadlington, OX7 3NA, England

Tel: 01608 676 691 Fax: + 44 1608 676 743 Email: wrm@gn.apc.org

 

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