Environmental deathstar heads for Chile's 'reserve of life'

Canadian mining giant plans massive smelter in pristine Central Patagonia

Feature story - November 18, 2002
The raw materials will come from Australia, Brazil and Jamaica. The finished product will go to the US and Japan. But the massive environmental damage? Well, that stays right there with the Chilean locals. The proposed Noranda Alumysa aluminium smelter in Central Patagonia is truly a monster of modern globalisation.

Clearcut area in Central Chile.

Chile is a land of extremes, and Noranda's mega-project Alumysa will be no exception. It would be extremely big, and it would inflict extreme environmental destruction in an extremely fragile, rare and beautiful habitat. The proposed site is the Central Patagonia's Aysén region in the Southern Andes, a land of breathtaking snow-capped mountains, clear lakes and globally important rainforests and endangered species.

Fully 90 percent of its forest plants and animals are found nowhere else on the globe, and many are endangered. The endemic huemul deer which appears on Chile's national shield is little but a legend in the rest of the nation, but it still roams the Aysén.

In Aysén people can drink the water straight from rivers, and the air is pristine. No wonder the 100,000 fisherman, farmers and small ranchers who settled and live in this region dubbed it a "Reserve of Life" and have vowed to pursue "just, sustainable and equitable" development.

Looking for new kicks

After defiling large chunks of North America, Canada's powerful Noranda mining corporation has cast its eye on Aysén and seen the irresistible allure of voltage.

Aluminium has been called "congealed electricity" because so much energy is needed to smelt it. In Aysén, Noranda will create 758MW of cheap hydroelectricity. To get it, the company plans to build three dams in watersheds close to Puerto Aysén. This will submerge 9,598 hectares of pristine forests, natural lakes and wetlands.

What Noranda is not saying is that cheap labour and lax Chilean environmental regulation enforcement also provide powerful inducements.

Compulsive polluting disorder

As Noranda casts a powerful spell over government officials by fluttering $US2.75 billion in their faces and chanting "low impacts and up-to-date technology", Chileans outside Noranda's thrall would be well advised to look at the company's track record.

Toronto-based Noranda was the second worst offender in 1998 for toxic emissions in Canada, where it has had at least 87 intentional violations and fines that exceed US$1.2 million. In the US fines have cost the company $1.9 million.

Despite Noranda's soothing words, the company is notorious for NOT using the latest technology needed to minimise environmental impacts. Once the Alumysa project heaves into action, Chilean officials will be hard-pressed to enforce any promises.

Details, details

"Frivolous" is how Noranda's vice-president of public affairs and communications, Denis Couture, described the recent rash of lawsuits around the Alumysa process. But Chilean environmental group Fima says there are "glaring and serious irregularities" in documentation, such as an error in which lake feeds a river (the Cuervo) that would supply 64 percent of Alumysa's hydropower. The group aims to overturn water rights granted to Alumysa. And the Aysén "Reserve of Life" Alliance has also filed a lawsuit charging that the destruction of natural resources and beauty means irreparable economic losses for the community.

Can they resist?

Will Chile's fantastic Patagonia become little more than the name of an outdoor clothing label? This is a defining moment for Chile. Past governments unfailingly swooned before foreign investment. And at $US 2.75 billion, Alumysa would the biggest foreign investment project in Chilean history. But of the $US 470 million in added value the project is supposed to generate, only $30 million will stay in the Aysén region.

Eight thousand workers will come to the region to construct the project. The huge influx of single men would increase prostitution and sexual disease, AIDS, alcoholism, crime and drug addiction. One thousand men would be employed during operations, but only 10 percent of them would be local people.

And for every tonne of aluminum Alumysa produces, it will generate one and a half tonnes of waste packed with fluorides, alumina, cyanide, sodium, arsenic, heavy metals, oils, solvents and coolants. No adequate storage or treatment plan exists, and the region's ample rainfall makes leakage into ground water and streams inevitable. This will threaten humans as well as rare marine life.

Damming and flooding the landscape will cause the endangered huemul dear and colo colo cat to suffer, as well 18 other endangered, rare or vulnerable species.

Alumysa must be stopped!

Without greater national and international attention, Alumysa will go ahead and one of the world's greatest reserves of temperate rainforest will be destroyed. Write to the President of Chile and ask him to put a stop to the Alumysa project and protect the Aysén regio

Categories