English translation of a letter from Minefinders to Business & Human Rights Resource Centreregarding dispute overCompañía Minera Dolores, Mexico
Spanish original and related material available here:
English summary translation of the article to which this letter is responding available here:
Greg B. Bush, VP Operations
Minefinders Corp.
Francisco Sarabia 717-3
Zona Centro CP 34000
Durango, Dgo. Mexico
9475 Double R Blvd. Suite 9 Reno
NV 89521 USA
Mauricio Lazala and Christopher Avery
Business & Human Rights Resource Centre
Chihuahua, Monday 7 July 2008
Dear Mauricio and Christopher,
Below is the position of Compañía Minera Dolores A. A. de C. V., in response to your communication regarding the disagreement with a group of community members from Ejido Huizopa, Madera municipality.
Compañía Minera Dolores S. A. de C. V. began negotiations in 1996 – 12 years ago – with the Huizopa ejido [ejido = Mexican system of farming entitlements],and established the first temporary occupation contract between the company, the ejido authorities and the Huizopa ejido assembly. The contractwas ratified and registered with the authorities. Itdetermined an annual rental sum with an increase during the same period.
Throughout those years the company complied with its part of the contract, including job creation for local residents and various types of support for the local community; however, as the project progressed, the Huizopa ejido farmers asked to amend the contract to increase their benefits.
Up until now the company has been in a construction phase. For this purpose it has invested over US$200 million to develop the mining infrastructure, and was expecting to start operating the mine in the first third of this year.
After new negotiations, the former contract was replaced in 2006 with a usufruct contract, requiring, among other things, the payment of almost US$4 million as compensation for the use of the land for the mine for 15 years. We should add that this amount was agreed in the local assembly and signed by all members of the ejido. The money was paid, as agreed with the ejido, on the day that the contract was signed.
Up until now, the company has provided over US$1.5 million in direct compensation to the individual farmers whose land comprises the project area. The company has fully complied with its obligations in the contract with the ejido, including, among other benefits, the construction of houses, a medical clinic, a school and a community centre, for the use of residents in the town and district – which has meant an investment over US$4 million.
The company has respected environmental regulations and has complied with all Mexican laws, including labour laws.
In response to the ejido farmers’ new demands, Compañía Minera Dolores is participating in a new negotiation round, involving Huizopa ejido representatives, mediated by the Chihuahua state government and observedby representatives from the federal and municipal governments.
We hope that this new roundtable dialogue with produce long-term results, so that the protestors never again turn to extreme and illegal measures that harm the rights of others, such as the road-block and sit-in that have now lasted for over a month, affecting the peaceful co-existence of the community, and denying the right to work, freedom of movement, the viability of the company and its contribution to the economic and social development of the region and above all, involving the psychological persecution of company workers and of local residents who do not support their movement.
In the most recent phase, the parties have agreed three fundamental themes for their dialogue: economic, environmental and social, through which the aim is to arrive at points of agreement to identify solutions that are acceptable for Compañía Minera Dolores and at the same time satisfy the ejido farmers, during and after the mine’s operation phase, if outside interests so permit.
Sincerely,
Gregg B. Bush
VP Operaciones
Minefinders Corp. Ltd.