Hidden Hegemony: Canadian Mining in Latin America
Canada’s mining industry is the largest in the world, and in 2004 its world market share accounted for 60 percent of all mining companies. In fact, the entire Latin American region is second only to Canada in terms of the breadth of its mining exploration and development activity. In what some call the «halo effect,» Canadian industries have been perceived as the more conscientious alternative to their U.S. equivalents. Since Canadian industries are understood to have socially responsible practices, especially in contrast to those of American companies, they are typically welcomed abroad. Nonetheless, recent accusations that the Canadian mining company Pacific Rim played a role in the death squad killings of anti-mining activists in El Salvador has brought this reputation into question, while further investigation into the Canadian government’s regulation reveals that the government has mandated no true restrictions on its industry’s mining practices abroad. Left to its own accord, the Canadian mining industry has no problem destroying landscapes, uprooting communities, and even resorting to violence to promote its interests; for this reason, only government regulation can affect true change. A recent move by the Peruvian government to protect citizens near the city of Puno demonstrates that Latin American governments may finally be willing and able to regulate Canadian mining companies operating within their nations.
The Evolution of Canadian Mining in Latin America
In the period from 1990 to 2001, mineral investment in Latin America increased by 400 percent, and by 2005, the region was receiving 23 percent of total worldwide exploration investments. The Canadian mining industry’s share of the Latin American market is the largest of any country, and stood at 34 percent in 2004. However, even with a substantial flow of Canadian investment in the mining sectors of these countries, living standards have not tangibly improved for those in proximity to the mines, despite the image portrayed by the mining industry.
This analysis was prepared by COHA Research Associate Daniel Whalen.
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