Goldcorp balks at call for mine suspension

Goldcorp balks at call for mine suspension

Company says Marlin mine in Guatemala is not polluting the environment

Goldcorp Inc. (TSX: T.G, Stock Forum) has dismissed an attempt by the Inter-American Commission on Human Rights to have its Guatemala mine shut down to allow for an investigation into alleged human rights abuses and environmental problems.

The Vancouver gold mining giant said it believes the commission’s move to have operations suspended is based on environmental allegations that are entirely with without merit.

The company also said the government of Guatemala has requested an extension of 15 days to respond to the commission ruling, which has called on the Marlin mine to be closed. That request has been granted.

“The existing scientific data and analysis clearly demonstrate no pollution or ill effects to health and the environment as a result of the mine’s presence,’’ said Goldcorp President and Chief Executive Officer Chuck Jeannes.

“This documentation is freely available and provides a compelling basis for the Guatemalan government to request to the [commission] to withdraw its action.’’

Goldcorp was responding to an adverse ruling from the commission which is part of the Washington-based Organization of American States. It considers its decisions to be binding on member governments.

The situation is being monitored by MiningWatch Canada, an Ottawa-based non-governmental organization that aims to promote responsible mining around the world.

Jamie Kneen, of MiningWatch, said the commission ruling is not something that should be taken lightly even though Guatemala President Alvaro Colom has indicated that he supports the mine.

MiningWatch said the Marlin mine has been plagued by controversy ever since it began operating in 2005.

“The Mayan communities affected by the mine have asserted that they never gave their consent to the mine, a right protected under international law,” MiningWatch said.

However, Goldcorp said it believes any suspension of mining activities would directly and adversely impact the human right to work.

Marlin produced 274,900 ounces of gold and 4.1 million ounces of silver last year. The mine accounted for about 11% of the company’s total output in the first quarter of 2010.

The mine is located in the western highlands of Guatemala, and has 1,900 people on its payroll.