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U.K.-based mining giant Anglo American is making huge profits exporting iron ore from Brazil to China
but is leaving little behind for local communities whose lives are now gripped by uncertainty and fear
The Minas-Rio mining project extracts and processes iron ore in the municipalities of Conceição do Mato Dentro and Alvorada de Minas in Brazil’s southeastern Minas Gerais state
It then transports the powdered ore through a 529-kilometer (328-mile) pipeline to Açu Port in Rio de Janeiro
Considered the world’s longest mineral duct
its reported use of the region’s natural water resources is blamed by local communities for shortages and pollution
The pipeline ruptured twice in 2018
spilling almost 1,000 metric tons of iron ore
These incidents are symptomatic of a lack of transparency in how the miner does business
which is odds with industry best practices
and offers few tangible benefits to the most impacted rural communities
according to a joint report by the Brazilian Institute for Social and Economic Analysis (IBASE) and Publish What You Pay
a global transparency coalition focused on the extractive sector
Mine-related dust and noise from the Minas-Rio mining project have replaced the calm routine of rural life
and the region’s rivers and streams are now either silted or polluted
affecting several communities’ drinking water supply as well as their farming activities
And the underlying lack of transparency in the country’s mining sector aggravates the impacts
“Information was very difficult to find, and what we were able to find revealed a huge issue with Brazil’s natural resource governance,” Athayde Motta, executive director of IBASE and co-author of the report, “In Search of Transparency: Ending Opacity in Brazil’s Extractive Sector,” told Mongabay by phone
“Since we started research for this report
that governance has been torn apart even further.”
but may soon be allowed if another controversial bill is approved
The report recommended that the Brazilian government join the 55 countries already affiliated with the Extractive Industries Transparency Initiative
which aims to set a new global gold standard for mining and oil governance
Anglo American said that it “strictly complies with the applicable legislation and has its activities licensed and monitored by the competent authorities” and that it “already follows the best international standards and guidelines.” In Brazil
it “operates with total regularity in the host cities
control and monitoring of social and environmental impacts.” The Brazilian government and the Ministry of Mines and Energy did not respond to Mongabay’s request for comment
“These multinational companies all claim to operate respecting country laws
But local laws are often inferior to international best practices and that seems to be the case in Brazil,” Miles Litvinoff
another co-author of the report and former director of Publish What You Pay U.K.
Alice spent her childhood playing at a waterfall near her home
and in its place stands the giant dam that holds back Anglo American’s mining waste
They live within what first responders call the self-rescue zone: if Anglo American’s tailings dam were to break
the wave of toxic sludge would reach them before emergency teams could arrive
“Everyone here lives in constant fear
with or without rain,” Alice told Mongabay by phone
Anglo American has offered to pay for the relocation of anyone living within this zone
and says that 80% of families have voluntarily opted in
But Alice says the terms aren’t good enough
will we have food to eat when our money runs out?” she asked
“Maybe it brought some benefits for people in the cities
her family’s rural life is plagued by sudden explosions and a foul smell from the mine less than 1.5 km (nearly a mile) from her home
her family now depends on Anglo American’s water trucks for drinking water
while their farm animals drink contaminated water from the river
Concerns had been raised by local communities about the impacts on their livelihoods from the get-go before the mine was fully licensed
but they were brushed off by local authorities
“[R]ural communities’ anxieties … were discounted during the licensing stages as expressions only of “perception” and “alleged” or “supposed” impacts rather than as objectively real consequences of the mine and its infrastructure,” the report says
only $34 million is paid to the municipalities in which it operates
with local activists saying no tangible benefits reach those most impacted by the mine
There is no indication of any illegal activity
but the report authors question why Brazil has made such a poor deal on its natural resources
“Companies should make a reasonable profit off of extracting
everything else should be in the public domain and used for the public good.”
For José Fernando de Oliveira, the mayor of Conceição do Mato Dentro and a self-proclaimed environmentalist
the mining project will pay off in the long run
He said the company has made an active effort to offset negative impacts
adding that more than 70% of the municipality’s revenue now comes from mining royalties
“We’re going through a period of economic growth
and our mission is to turn that growth into development and quality of life,” Oliveira said by phone
adding that the mine supports investments in ecotourism and infrastructure
“There is a huge concern on the company’s side to mitigate the negative impacts and invest in positive ones
such as financing economic diversification
Mining doesn’t have a second harvest
But for civil society and rural community members
“Anglo American talks a very good talk about all their various initiatives
then why are there people under witness protection programs who opposed the mine
Why do we get evidence that communities are divided and unable to pursue their traditional livelihoods
and fearful of dam breaches?” Litvinoff said
Banner image: Anglo American’s Minas-Rio mining project has upended the once calm routine of rural life in the municipality of Conceição do Mato Dentro
in Brazil’s southeastern Minas Gerais state
This image shows the jubilee party of Bom Jesus do Matosinhos in Conceição do Mato Dentro
Image courtesy of Alexandre Guzanshe/IBASE
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in Conceição do Mato Dentro - Minas-Rio project
only 30% would be for people in the region
All original content produced and editorially authored by Brasil de Fato may be reproduced
provided it is not altered and proper credit is given
All original content produced and editorially authored by Brasil de Fato may be reproduced
provided it is not altered and proper credit is given.