Goldcorp response to concerns about alleged water contamination at the San Martin mine in Honduras

9 Dec 2009

Business & Human Rights Resource Centre invited Goldcorp to respond to the following report:

- "CAFOD and Development and Peace Canada discover evidence of severe water contamination at Goldcorp mine", CAFOD and Development and Peace Canada, 2 Dec 2009
http://www.cafod.org.uk/news/goldcorp-2009-12-02

Goldcorp sent the following statement to the Resource Centre:

The most disappointing aspect of the latest allegations by CAFOD and Development & Peace concerning water contamination in Honduras are not just that they are patent falsehoods and distortions, as this type of misinformation has unfortunately come to be the norm. What is most discouraging is that CAFOD’s press release was issued just a week prior to a meeting planned between Goldcorp executive and technical personnel and representatives of CAFOD, Development & Peace and Caritas. The intent of this meeting was to establish a constructive dialogue and share information addressing topics of mutual interest at San Martin mine. The odd timing of the release of these false accusations is not consistent with that goal, in our opinion. Instead, we are left to address these irresponsible charges through channels like these, and so we will.

To repeat, statements made by CAFOD and Development & Peace regarding water contamination at and around the San Martin Mine in Honduras are completely false. To correct the record, the Honduran government agency, DEFOMIN, reported in September 2008 that water flowing from the Palo Alto pit had been treated to international standards. The successful treatment and the clay encapsulation process are confirmed inDEFOMIN’s December 2008 report. DEFOMIN’s reports are public, and copies aresent to SERNA, DECA, CESCCO, the Honduran Environmental Attorney, the local Municipal Authorities, and the San Ignacio Health Center.

As to the allegation of water samples obtained containing low pH measurements, the Honduran Environmental Prosecutor visited the mine site with Caritas Tegucigalpa to sample water three separate times in 2008, and all pH measurements were above 6 and showed no evidence of acidity. There are legal records of each of these visits.

The allegations regarding the mine’s closure plan are also very troubling. The San Martin closure plan was reviewed bythreegovernmental agencies: DECA, DEFOMIN and CESSCO, as well as the San Ignacio Municipality. Following these reviews, the closure plan wasapproved by the Honduran Ministry of Environment (SERNA) in accordance with applicable law. The approval was obtained after intense evaluations and many visits to the mine site.

The CAFOD announcement goes on to state that “drainage channels constructed by Goldcorp to collect water from the mine’s heap leach pads have overflowed on two occasions since their construction in May 2009, discharging water out towards the community road”. In fact, these drainage channels never overflowed; rather, during construction of the channels and after a large rain storm, some rinsed ore washed onto a road. Consistent with our commitment to transparency, we promptly informed DEFOMIN of the event, who came to site to investigate and to take samples. The samples were tested, andindicated no negative impacts. The channels were constructed in a manner consistent with international best practices, including the use of a layer of concrete and a Geoweb stability system. The fully-constructed channels function according to design, and did so during the severe storms of the past year.

The CAFOD announcement also quotes a Professor Younger regarding his opinions on the issue of acidic rock drainage. It is important to clarify that Mr. Younger never requested a visit to the San Martin mine when he was in Honduras, never took a sample of water at the mine site, and never produced a pH assessment of the mine site water. His comments regarding the situation at San Martin should be interpreted in that context.

Despite this latest setback, our hope is that CAFOD, Development and Peace and Caritas will ultimately decide to pursue a constructive dialogue to continually improve the environmental and social well-being of the communities in Honduras. However, since CAFOD chose to present their flawed conclusions within an inflammatory and antagonistic press release based on false allegations and misinformation, we have no choice but to postpone our scheduled meeting for December 10. As conditions for a future meeting to take place, we first demand the removal of the press release from the CAFOD web site and issue in its place a full retraction. We have acted in good faith and encourage these organizations to do so as well.

We are proud of our record of responsibility and service at San Martin. Its presence in this region has had undeniable benefits to the local populace. In carrying out the mine’s closure, our dedicated staff will remain to ensure that a responsible, world-class reclamation effort takes place. As always, we welcome any and all constructive efforts that will contribute to this outcome.