After languishing for most of the 1990s, gold prices have risen steadily, enriching mine owners and some investors. The true cost of metals extraction and refining, however, is often borne by people and places far removed from the mercantile exchanges. Open-pit mines like Argentina’s Alumbrera disturb the landscape and pollute surrounding communities, which is tragic; now, in what could be a portent, it may also be a crime.

In June 2008, a provincial court in Tucumán, Argentina charged the vice president of mining company Bajo la Alumbrera with “crimes against the environment.” Three multinational corporations jointly own Bajo la Alumbrera: Xstrata, Yamana Gold and Goldcorp, a Canadian company. The Canadian Mining Journal reports that Julian Rooney, Vice President of Bajo La Alumbrera, was “not jailed, but his possessions were impounded.”

David Modersbach of the National University of Rosario, Argentina has written a thorough summary of the case against Alumbrera. The charges were ten years in the making:

“The ruling is a product of a complaint filed ten years ago by citizens groups and biologist Juan González, Secretary of Environment for the Province of Tucumán. They discovered that Alumbrera was dumping millions of liters of toxic liquid wastes into DP2, a canal used by animals and farmers alongside the Alumbrera pumping and filtration station in Tucumán. González ordered a series of tests, and the Provincial Health System (SIPROSA) found lead, cadmium, copper, selenium, mercury, cyanide and arsenic above legal health limits. A claim was filed in 1998 against Alumbrera for violating the laws in Argentina’s National Constitution which regulate toxic waste emissions.”

For its part, mine co-owner Goldcorp says that Alumbrera “has been designed to meet environmental standards equivalent to those of the leading gold and copper producing countries.” Goldcorp’s comment on the problem:

“Despite the best efforts to ensure minimal impacts and promote positive community initiatives, some tensions inevitably arise as a consequence of the development of a large scale mining industry in its infancy in Argentina. Consequently, Alumbrera works closely with government at the national, provincial and municipal levels to resolve common issues and alleviate community concerns.”

It is this “working closely” with government that spurred legal action by the people of Tucumán. While the industry may be in its “infancy,” Alumbrera is already in decline, as confirmed by Goldcorp’s own production figures. Modersbach explains that, when the mine is depleted, its owners can simply walk away from it: “Due to agreements signed by the government and Alumbrera in 1996, responsibility for cleanup will fall upon local authorities.”

The damage done by mining will long outlive any one gold mine. Alumbrera’s owners may be the first brought up on charges, but unless the industry renounces the behavior of its “infancy,” they will not be the last.

Thanks to Liz Umlas for alerting us to this story.