A Dark Side to Canada: An Analysis of Canadian Mining Corporations in Latin America

Chonyi Lama, Staff Writer

October 1, 2021

Amidst the prominence of globalization and emphasis on economic and state cooperation, Canadian mining corporations have continued to successfully expand their operations abroad with the support of Canadian governments. This holds true in Latin America in particular, where between 50 and 70 percent of mining activity involves Canadian companies, a figure that demonstrates how much weight they hold in the area. Despite the economic benefits this may have for Canada, a closer analysis of Canadian mining activities in Latin America reveals a dark side to the implications of resource extraction in the developing world. 

A 2016 report by the Justice & Corporate Accountability Project (JCAP) looked at violence and criminalization associated with Canadian mining companies in Latin America from 2000-2015. Its findings revealed that 28 Canadian companies had been involved in issues that included 44 deaths, 30 of which were classified as “targeted”; 403 injuries, 363 of which occurred during protests and confrontations; and 709 cases of “criminalization”, including legal complaints, arrests, detentions, and charges. These incidents of documented violence had a widespread geographical distribution. Deaths occurred in 11 countries, injuries were suffered in 13 countries, and criminalization occurred in 12 countries. The report concluded that the proximity between violent conflict and Canadian mining companies, paired with the frequency with which such incidents occur, demonstrate a significant systemic problem. Furthermore, existing Canadian laws and government policies do not address the frequent and severe incidents.  

The high-profile 2011 lawsuit brought forth by eleven Indigenous Guatemalan women against Canadian mining company Hudbay Minerals Inc. sheds light on some of the human rights abuses committed in the region. The women allege that they were gang-raped by Guatemalan police officers, soldiers, and security during a forced eviction orchestrated by the Canadian company in 2007 in a bid to force the villagers off their ancestral lands for the nearby Fenix mine - one of the largest nickel mines in central America. At the time, Fenix was operating under Guatemalan Nickel Company, a subsidiary of the Vancouver-based mining company Skye Resources. Skye was later acquired by Toronto’s Hudbay Minerals. Hudbay Minerals is currently involved in two other lawsuits concerning human rights violations at its previously owned Finex mine, and continues to face scrutiny for ongoing human rights violations occurring at its Constancia mine in Peru.

This case is just one of the many occurrences of human rights violations carried out by a Canadian mining corporation in Latin America. Concerns and objections from local communities regarding displacement, adverse health consequences caused by mines, and environmental impacts are often met with the forced dispossession of lands through coercive and violent means. In Latin America where corruption is avid across many countries, these tactics have been successful largely due in part to the assistance from local politicians, law enforcement, and military personnel who are paid actors in such cases. The distribution of bribes and the lack of legal accountability found in local justice systems allow Canadian corporations to pay these third party groups to then abuse their power in dealing with mine protestors. The involvement of local authorities in mining operations abroad legitimizes the power of Canadian mining corporations in exploiting environments, labourers, and local communities.

Considering the prominence of Canadian mining corporations, Canadian policies on dealing with environmental and human rights abuses abroad are particularly important for regulating the mining sector internationally. Recognized as a pillar of the Canadian economy that supports jobs and economic growth, Canada is home to half of the world’s mining and mineral exploration companies. In 2019, Canadian mining corporations reached assets valued at $177.8 billion abroad - two thirds of total mining assets. The same year, the mining sector accounted for 5% of Canada’s total nominal GDP.

A report from an international conference organized by the Centre for Research on Latin America and the Caribbean at York University, (CERLAC) and MiningWatch Canada however, has established that in contrast to their support for agreements that advance the freedom and security of international investors, Canadian governments have not sought to establish binding international conventions to protect the interests of the environment, labour, and communities, nor have they championed strong domestic regulation of corporate activities abroad. This lack of accountability and unwillingness of Canadian governments to adequately address these issues can be explained by the economic benefits reaped from unequal nation-state power relations. 

The mining sector has been able to establish itself as a mainstay of the Canadian economy due to the ability of Canadian corporations to operate in the Global South with little to no restrictions. Latin American host countries possess weak environmental and labour laws and as a result, the process of mining is an extremely exploitative one. Historically and today, neoliberal trade agreements and structural adjustment programs infiltrated through global institutions such as the IMF, World Bank and the Canadian International Development Agency (CIDA), continue to directly influence the laws and policies governing developing states. 

There is no doubt that Canadian mining corporations have the support of Canadian governments, even if this means ignoring human rights violations. So, what does this tell us about the Canada we know? Portrayed globally on the world stage as a leader - compassionate and ethical, environmentally conscious, a land of freedom for immigrants and refugees. However, a deeper look into Canadian mining operations in Latin America reveals that under this visage, there is a side to Canada that is dark and grim.