top of page

The Dark Side of The Canadian Mining Industry



The Canadian mining industry is one of the largest in the world. It produces over 60 different metals and minerals, and employees more than 620,000 jobs globally [1]. In 2018, Canada’s mining industry supplied 5% (97 billion dollars) to Canada’s total GDP. Canadian mining companies operate in well over 50 different countries worldwide and as a result, employee people in foreign countries [2]. While Canada strictly enforces workplace safety laws and other protective regulations for employees; those same laws and regulations do not follow Canadian mining companies mining abroad. Despite the mining industry being a prominent asset within Canada, Canadian mining companies have a dark side that many Canadian citizens do not know about.


Allegations against Canadian mining companies operating in foreign countries are piling up and surfacing, catching the attention of courts here in Canada. This is important for the citizens of foreign countries suffering from abuse/corruption on behalf of Canadian mining companies. Often times, rule of law in smaller countries is not as equitable as our system here in Canada. One example of this took place back in April 2013.


A group of Guatemalan farmers went to the front entrance of a Vancouver based mine company called Tahoe Resources’ Escobal mine (operated by a Tahoe subsidiary Minera San Rafael) located in Southeast Guatemala. These farmers were concerned about the location of the mine as they feared it would impact their water and land. During their protest, the farmers were fired upon by rubber bullets, injuring several locals. This led to seven farmers launching a civil suit against Tahoe Resources in the Supreme Court in British Columbia. At first, Justice’s ruled that a Canadian court did not have jurisdiction, stating that the case should be tried in Guatemala. However, that decision was later appealed and overturned as an argument put forward asserted that Guatemalans likely would not get a fair trial in their own country [3]. The case is set to take place in a Vancouver courtroom.


What is also interesting about this case is that it is the first time a Canadian court is allowing foreign plaintiffs to pursue justice in Canada for alleged incidents that occurred in another country. If Canadian mining companies are aloud to bring profits made abroad back to Canada, why can’t their wrong doings follow as well? Tahoe is one of many Canadian mining companies facing allegations that could potentially end up being settled within Canadian courts. A contractor of the Canadian company Nevsun Resources in Northeast Africa is being alleged of subjecting workers to abusive labour practices. What started with three allegers quickly grew to more than a dozen after a suit was filed in the British Columbia Supreme Court. The lawsuit against Nevsun claims that disobedient punishments against workers included being forced to roll around in hot sand while being beaten with sticks until the point of losing consciousness [4].


Cases like these point out a problem we have within Canadian law; Canada lacks pre-emptive laws that regulate actions done by Canadian companies operating abroad. Nothing prevents the participation of environmental/human rights abuse within another country by a Canadian company (other than it would look bad for the company). Shining a light on cases of corrupt practice/slave labour done by our countries companies may give them a bad public perception, however, for the longest time (until recently) that did not stop these companies from engaging in these acts to maximize profits. Additionally, nothing was done on the Canadian courts behalf to prevent situations like this from occurring (again, until recently).


Studies from the Fraser Institute found that corruption within Canada’s mining industry is worse than in some African and Latin American countries [5]. Several Western Provinces and Territories ranked as being more corrupt than other countries such as Chile. Corruption in the Northwest Territory (ranked as the most corrupt in Canada) is so bad that it deterred 16% of responders within the survey from investing within the area. While Canadian mining corruption is substantial within the borders of Canada, it is even worse abroad, having been linked to fueling resource wars in places such as Africa.


Reporting from the Canadian Dimensions uncovered that Canadian mining companies might have played a part in the Rwandan genocide of 1994. “a Canadian mining company cut a deal with an infamous and violent African militia according to one expert of the militia, known as the “FDLR,”. The mining company has no other choice if it wants to safely dig up billions-of-dollars worth of gold for themselves and their investors” [6]. The mining company interested is called the Banro corporation of Toronto. To avoid new environmental legislation's within Canada at the time, the company began to seek a new place to mine, where potential for gold was high and environmental regulations/the price of bribery was low. The siege into the Democratic Republic of Congo by Banro could cause chaos to emerge as neighbouring countries/rivals want a piece of the profits as well. The selling of minerals such as gold and coltan (common minerals used to make electronic consumer items) to the West by Uganda and Rwanda incited proxy militias from other countries to invade. While Banro is not entirely to blame, their pernicious expropriation could result in further lives being taken in the resource war occurring within the DRC.


Unethical actions on behalf of Canadian mining companies operating abroad are starting to catch up with them. As human rights are becoming more relevant than ever, the violation of said rights is becoming less and less tolerable. Additionally, with the prevalence of information platforms such as social media, these amoral actions are starting to make there way into the collective conscious of our societies. With more people being aware of the situation surrounding the Canadian mining industry and as pressure from human rights groups increasingly become more aggressive, law enforcers such as judges are feeling an obligation to do something. Prior to technological advances such as the internet, very few people would have knowledge of the corruption taking place. Of those people who knew about the corruption, often times they were apart of it, or were paid off to turn a blind eye to what was occurring.


Despite the profits that are brought in through these companies, it doesn’t justify the way they treat their ‘employees’ abroad. Employees in that last sentence is put into air quotes because can you really call them employees? Employees are treated with respect and giving fair wage/benefits to compensate them for their hard work. A better term for the way they have been treated would be slaves. It is unfortunate how burdensome the Canadian mining industry has been. It affects the perception that Canada as a country has around the world and renders a feeling of disgust to be apart of a country that has done really nothing about this issue.

[1] Mining.ca. (n.d.). Mining Facts. Retrieved April 16, 2020, from https://mining.ca/resources/mining-facts/ [2] NRCAN. (2019, February 27). Canadian Mining Assets (CMA) by Country and Region, 2016 and 2017. Retrieved April 16, 2020, from https://www.nrcan.gc.ca/mining-materials/publications/15406 [3] The Narwhal. (2019, June 7). Canadian mining companies will now face human rights charges in Canadian courts. Retrieved April 16, 2020, from https://thenarwhal.ca/canadian-mining-companies-will-now-face-human-rights-charges-in-canadian-courts/ [4] Bernard, R. (2020, March 2). New court ruling considered victory for those impacted by Canadian mining operations abroad. Retrieved April 16, 2020, from https://edmonton.citynews.ca/2020/03/01/court-ruling-victory-canadian-mining-operations-abroad [5] Tencer, D. (2012, February 24). Canadian Mining More Corrupt Than Parts of Developing World: Survey. Retrieved April 16, 2020, from https://www.huffingtonpost.ca/2012/02/24/canada-mining-corruption-fraser-institute-survey_n_1299480.html?utm_hp_ref=ca-mining-corruption [6] Lasker, J., Engler, Y., Engler, Y., Engler, Y., Gonick, C., & Paley, D. (2009, October 29). Digging for Gold, Mining Corruption. Retrieved April 16, 2020, from https://canadiandimension.com/articles/view/digging-for-gold-mining-corruption

Comments


bottom of page