Above Photo: Looking at Goldcorp’s Los Filos mine in Guerrero, Mexico. Photo: Cristian Leyva/Miningwatch Canada
In more than two-thirds of the mining-related lawsuits against governments in the region, communities have been actively organizing against the mining activities.
The right of foreign investors to sue governments in international tribunals is one of the most extreme examples of excessive power granted to corporations through free trade agreements and investment treaties.
For decades now, corporations have used this power to demand massive compensation for public interest regulations and other government actions that may reduce the value of their investments. Widespread outrage over this “investor-state dispute settlement” system is among the key issues in the renegotiation of the North American Free Trade Agreement.
But this public outrage hasn’t stopped companies from continuing to file such lawsuits. In January 2019, for example, U.S.-based Legacy Vulcan LLC registered a case against Mexico over an environmental dispute concerning limestone quarrying near the well-known vacation destination Playa de Carmen. The company cited ecological land use regulations in the municipality of Solidaridad preventing the company from expanding mining operations on two properties. Using NAFTA investment rules, the company is reportedly planning to demand approximately $500 million in compensation.
The same month, U.S. firm Odyssey Marine Exploration filed its notice of intent to sue Mexico for the outrageous sum of $3.54 billion for having failed to obtain permits needed to advance an offshore phosphate mine project off the coast of Baja California Sur. This is the largest amount that Mexico has ever been threatened within any ISDS suit.
These are just two of 38 mining-related investor-state cases documented in a new report by the Institute for Policy Studies, MiningWatch Canada, and the Center for International Environmental Law. Extraction Casino: Mining Companies Gambling with Latin American Lives and Sovereignty through Supranational Arbitrationexposes how transnational mining companies are among the biggest abusers of this system — especially in cases of unwanted investments where communities are in hard-fought battles to defend their land, water, health, and ways of life from the destructive impacts of mining.
Worldwide, the extractive sector is behind 24 percent of all known investor-state claims and the number of mining-related cases is booming. Out of the 169 cases filed by oil, gas and mining companies since 1974, 96 have been filed since 2010.