Technical summary of the gold mining at Skouries

Struggle Committee of Megali Panagia, 14 January 2024

 

Gold mining and gold metallurgy, as well as the mining industry in general, is one of the most polluting activities worldwide, with immediate and long-term effects on the natural environment and humans. In this report, some basic characteristics of gold mining and metallurgy will be elaborated, as briefly as possible, in order to illustrate what gold mining is, how it is carried out and what are its effects. At the same time, some data on the Eldorado Gold project for gold mining and metallurgy in Skouries will be highlighted. The paper also provides a timeline connecting the initial with the updated/new investment plan agreed upon with the Greek government.  

Land grabbing 

First of all, gold mining companies take over the land. In this case, a vast area of public forest land around 31,700 hectares (or 317 square km), is reserved exclusively for the mining project. This means that the mining company has exclusive mining rights over any other activity, for example, logging, beekeeping, agriculture, as well as public research programs or archaeological investigations. But this also means that the company can log and exploit the timber itself. 

Deforestation 

Meanwhile, giant deforestation and clearing of vegetation takes place. The forests surrounding the Skouries mining project are valuable. Being near populated areas, they protect against surface runoff and supply drinking water springs. These forests are habitat to a great variety of fauna and native “keystone species”. They are living examples of the primary forest ecosystems of Europe. 

Additional roads 

A vast network of roads is necessary for transportation. In order to facilitate the Skouries project, it is planned to construct hundreds of kilometers of new asphalt road through the forest land, interconnecting with the existing provincial road network. A massive number of heavy-duty vehicles will be passing through this network every day, further damaging the forest and creating traffic congestion on the existing road networks. Further consequences will be dust and noise levels in inhabited areas.  

Mining waste 

Mining companies need a place to dump their waste. Dams will need to be built, in order to create basins to store liquid waste from the metallurgical process. The dams are usually constructed with solid waste from the metallurgy process, and the basins, called tailing ponds, will stay long after the mining process is finished and the mining companies are gone. In the case of the Skouries investment project, the tailing ponds are to be located where one of the primeval forest trees once stood, with a trunk diameter of 1.5 m. The deposition capacity of the tailing ponds will be approximately 65 million cubic metres and the dam wall will be 140 m high, approximately 51 million cubic metres of solid mining waste will be used. 

Open pit mining 

After all the necessary infrastructure is built, mining can start. In the case of Skouries, the project is based on open pit mining, also known as opencast mining. Τhis is a surface mining technique, which involves digging a cone shaped crater with a diameter of hundreds, or even thousands of meters, with the use of TNT explosives. The surface mining will be followed by underground mining. The total quantity of soil to be extracted is around 175.8 million cubic metres, the size of the crater will be around 1 Κm and the total depth of surface plus underground mining 900 metres. Dust emissions from blasting, vehicles and other activities will likely reach 3.116 t/h. 

Metallurgy processing 

Along with mining, the metallurgy processing will take place on site. Giant dumper trucks will transport the mined soil to the metallurgical facilities, in order to be milled into a fine powder. This powder will be transferred into large floatation tanks, where gold concentrate or pure alloy (Dore 99% Au) can be extracted in various stages, with the use of chemical reagents. Out of the 175 million cubic metres that will be mined, the average gold concentration is merely 0.4 g/t, so a huge volume of soil will end up in the tailing ponds and dams. Needless to say, these wastes will be contaminated with the poisonous chemical compounds used in the process of gold extraction. The presence of cyanide and its compounds in gold metallurgy have deadly effects on living beings and its potential use was one of the main arguments against the gold mining projects, both in Olympiada in the past, and in the ongoing struggle in Skouries. In Greece, cyanide use is actually prohibited. 

So it is not by chance that the company, in its initial investment proposal for Skouries, promised a so-called revolutionary, cyanide-free method for gold metallurgy, called flash-smelting, a technique which was eventually abandoned as non feasible in the updated agreement. 

Water grabbing 

The process that takes place prior to everything is the draining of the underlying aquifer. This is a major reason for the mobilization and opposition of the local people against the Skouries project. It is necessary to get rid of the water first because it is impossible to dig a hole in water and it is impossible to work with surface water in the facilities. So, first they come for the land but also for the water. In the updated mining plan, the mining company has absolute power over the water of the area, specifically it will be able to divert, pump and use as much water as it needs. 

At Skouries mining has been happening in a much smaller scale over many years. The draining of the Skouries mountain has been an ongoing process to which all the mining companies have contributed, but nowadays the process has intensified. Pre-drainage canalization of underground water through tunnels, and a great number of drilling projects are necessary. The dozens of boreholes around the perimeter of the mining site will reach up to 140 metres below sea level. Add to those another 157 exploratory boreholes in the wider mining zone, and we are talking about tens of kilometers of drilling in total. 

The main aquifers are in the forest of Skouries, as well as in the wider mountainous area in the NE of Halkidiki. Several streams that enrich the largest river of Halkidiki and a great number of springs that unfortunately are drying up year by year are located in this area. In the last two years, a dramatic decrease in the flow of 5 springs around the village of Megali Panagia have been noticed and some of them have even dried up. The irony is that the Greek government authorities put the blame on climate change when asked for the underlying reason of the phenomenon. 

Water pollution 

In response to public concern on the draining of the mountain, the company came up with another, equally controversial method called 'forced re-entry' of the water in the aquifer. This involves 15-16 re-injection drillings around the perimeter of the site, which will be used to pump the water back into the aquifier. In other words, on the one hand, drainage drillings will drain the water out of the aquifer and on the other hand, re-injection drillings will refill it with contaminated water. 

A number of pollutants such as lead (Pb), mercury (Hg), copper (Cu), manganese (Mn), iron (Fe), arsenic (As), cadmium (Cd) , chromium (Cr), sulfur (S), will become concentrated in the underground and surface water. As an alternative to forced re-entry, in case this method fails, the mining company proposes to channel the water to adjacent streams, assuming that this will contribute to the water supply of the area. It is worth mentioning that arsenic (As) has already been detected in underground water around the area of former mining activity. 

Mining company strategy 

Mining companies are working on the long term. As mentioned before, the time needed to create the infrastructure for mining and metallurgy is long and depends on various factors, such as stock market and metal prices, the financial liquidity of the acting company, bureaucratic responses, social resistance, etc. Mining is a long term process, but mining companies watch the bigger picture for the right time to act.  

As a case in point, the mining company submitted its initial investment plan in 2006, stating its intention to mine and vertically integrate production by the flash-smelting method. The products would be pure metals, alloys of gold, copper and other minerals. It is now clear that this cyanide-free process was proposed strategically, in order to soften local community reaction. It was also designed to sweeten the Greek government, as this vertically integrated procedure would mean the production of pure metals as end products, and as such subject to a 'mining fee' bringing state revenue. 

Some 13 years later, in 2019, the mining company strikes a new, revised investment agreement with the Greek government, on the grounds that the existing one is outdated. It subseqently succeeds in being exempted from the obligations and duties stemming from the previous investment agreement, on vertically integrated production using flash-smelting. 

New investment agreement and public responsability 

In other words, the mining company in charge of the largest investment for decades in Greece, is the owner of a huge forest area, where it operates with little public accountability, having fulfilled few of its initial obligations. While the obligation to start mining in 2009 has not been met, the company is further exempted from its initial responsibilities, while the Greek state undertakes even more obligations, by ratifying a new agreement in “good faith”. This term is repeated a lot in the new agreement and it has created a great deal of concern. A separate article in the agreement will examine what this means. 

One example of how “good faith” works, is the memorandum of understanding and cooperation (sic) between the mining company and the Greek Archeology Department. The company has already announced the existence of three archeological sites where the future crater is located and around the main site. In the memorandum the department commits that, in the case of archaeological discoveries it will comply with the company's project implementation timeframe; otherwise, this will constitute a so-called 'event of public responsibility'. This term has also created a lot of community concern and consists in the fact that the Greek government, in certain cases of violation of the agreement, must undertake a series of actions in order to rectify the violation. If it fails, then it has to compensate the company. All licensing and permits from the Greek state, also fall under the “event of public responsibility” clause. 

People are pawns and laws are there only to be bent. The mining company has always treated employment as a leverage over the local community. This has triggered conflict among the citizens of the village of Megali Panagia, which led to the rupture of the social fabric, a wound that has not healed yet. Targeted employment offers were made to certain people during the early years of the company, in order to create a positive climate. While the company in its initial agreement with the Greek state had committed to hiring 90% of its workforce from local communities, in the new agreement it will only prioritize the local population over non-locals, provided that they have the required skills. 

Unprecedented degradation of labor rights 

In the new agreement, there is an unprecedented degradation of established labor rights. For example, strikes are now considered to be an event of force majeure, just like earthquakes, extreme weather phenomena, wars, acts of terrorism, etc., therefore the company can suspend its obligations. Non-peaceful protests are also considered an event of force majeure, and if they take place the company will once again have the right to suspend its obligations. 

In September 2023, three retaliatory dismissals were announced by the mining company as a result of the workers attempts to unionize. The workers then went on strike for this. Since ratification of the new agreement in 2019, hundreds of workers have been laid off. It is already clear to them that the future is not as bright as initially promised. 

Resolution of disputes in international arbitration courts 

While the right to strike and demonstrate are being infringed, the company, contrary to standard practice, enjoys an unprecedented, untouchable status as the resolution of disputes with Greek state will no longer be within the jurisdiction of Greek courts, but will be resolved in international arbitration courts. The company is also protected from prying eyes, since confidentiality agreements between the company and the Greek state are to be signed. It is also important to point out that although environmental inspections are to be carried out by independent auditors, these will be hired by the company itself. The new agreement also includes clauses for further tax exemptions for the company, on the merit that it is funded by foreign capital, based on a dubious -but nevertheless an existing- legal framework also used for the tax exemptions of Greek ship-owners and the Golden Visa program. Notes by the Megali Panagia Struggle Committee describe the financing of the mining company by foreign capital, including by the EBRD

In conclusion, with the unprecedented level of influence that the company has achieved, it is not far from truth to say that local communities have found themselves in something of a hostage situation. 

Thessaloniki and Athens water back in State hands

27 July 2023

Today the Greek Government implemented the decision 8/2023 of the CoS (Council of State) Compliance Committee by legislating the exit of EYATH from Superfund, and its return to the State.

With a 12-line amendment, the Water of Thessaloniki returns to the management of the State, where the Constitution has always stipulated. 

In 2011, the Hellenic Privatisation Fund (TAIPED) was established and EYATH - EYDAP were included in it for sale. A struggle was launched to keep Water as a common  good under Public control.

In 2023, after dozens of mobilizations, a grandiose referendum on Water, the transformation of the Hellenic Water Fund to Superfund, and five decisions of the Council of State, the country's largest water companies are returned to the state.

An amendment in July 2022 was interposed by which the Government annulled the decisions 190/2022 & 191/2022 of the CoS for the exit of EYATH- EYDAP from the Superfund, an amendment - an anti-democratic diversion.

This was followed by decisions 7&8/2023 (March 2023) of the CoS Compliance Committee, which forced the Government to withdraw its anti-democratic diversion.

At midnight on April 2, after the Concert for Water at Aristotelous Square in Thessaloniki (30.000 spectators) the first declarations for the implementation of the CoS decisions started by government officials. 

The government was forced to comply with the decisions of the Council of State and the will of millions of citizens.

We could not celebrate in a situation where the country is literally burning, canadair pilots and train passengers are being sacrificed in the name of "less state", energy and all public goods have been privatized, and the logic of "go where the sun goes" is becoming the norm.

Let the fight for water become an example to take back our lives and our land.

Today a great cycle is closing; we are preparing for the next cycles that have already opened, PPPs, Water regulatory, Public Taps.

Thank you, to each and every one of you who throughout these 12 years believed, supported, fought, struggled, frustrated, tired, encouraged, and finally vindicated with us. Without each and every one of you, Water would be in private hands.

Struggle’s justice, took a lot from you,
But Life as at postpartum, gave birth to hope.
(lyrics from a Greek struggle song) 

This text is the English translation of the
announce on the website of the EYATH Employees Union

Update info sheet on Italy by the Italian Water Forum

Italian Water Forum (Forum Italiano dei Movimenti per l’Acqua) denounces that, at the eve of general elections, Italian Draghi Cabinet changed unilaterally, in favour of privatization of public services, the Competition Bill agreed with the Parliament.

Italian Water Forum learned from the press that last September 16, one week before general elections, Italian Draghi Cabinet approved a decree that, without any previous confrontation, modifies unilaterally in favour of privatization of public services the Competition Bill previously agreed with the Parliament. It must be pointed out that, at the eve of the elections, current Parliament has no time to discuss and vote this decree and in the meantime the Government is under ordinary administration, so it cannot legislate by changing legislative provisions already agreed with the same Parliament.

Contents of the decree as reported by the press are even more serious. If confirmed, they violate what previously agreed and precisely: it is reintroduced the obligation for an operator of network services, whose government is public, to justify its failure to open to the private market; public operators under public law, i.e. ABC of Naples, are excluded from the management of network services. Possible illegal nature of such provisions are in course of evaluation.

It will be responsibility of the future Government and Parliament to reject this decree that overturns the parliamentary mandate and aims to submit public services to the governance of the big private subjects. As Italian Water Forum we will continue our struggles and initiatives against privatization of local public services and for the respect of the vote expressed in the referendum of 2011.

Rome, 23 September 2022

Forum Italiano dei Movimenti per l’Acqua

A grassroots concert about water impacts politics in Greece

On the 2nd of April, a concert for the protection of the public ownership of water, held on the main square of Thessaloniki, Greece, had a major impact on Greek society. Musicians known for their political speech and activity, not conforming with a rather widespread apolitical view of a great part of the mass media, accepted the invitation of the worker’s syndicate of EYATH (the public water company of Thessaloniki) which organized the concert, and contributed – along with many volunteers workers of the company, collectivities and students – to one of the most massive music gatherings in the history of the city, with a clear and straightforward message;

Defend Water
Public goods above their profits.

There is a rather turbulent background preceding the concert. The conservative government of New Democracy has twice attempted to pass legislation leading to the privatization of the water, the second of which was a trick to overpass a clear command by the Council of the State that water should stay under public control. Roughly a quarter of EYATH’s shares are an asset of the Hellenic Fund (Superfund), an institution which, among other assets, possesses estates and shares conceded to it as a result of the memorandums Greek governments have signed during the period of economic and debt crisis. The Council of State has explicitly ordered that the aforementioned shares return under public control, reassuring, thus, the public ownership of water.

Read more...

Appeal to the court by the Comitato Umbro Acqua Pubblica against Umbra Acque spa

25 June 2022

Popular action at the court of Perugia by the Comitato Umbro Acqua Pubblica
With private management, the accounts are not balanced for the citizen.

It has been proven for a long time that profits and public services are incompatible and that private management maximises profits and leaves the debts and dysfunctions to the public.

This is the case of the water service which, after almost 20 years of private management, has generated profits and consolidated the manager's assets thanks to public funding and the application of very high tariffs.

While citizens save on water consumption because they are sensitive to the preservation of the resource, as well as to the bill, politicians, on the one hand, are alarmed by the water crisis (drought and water rationing) and, on the other hand, endorse waste and over-consumption, as for example, the loss of 50% of the water introduced in the distribution network. This high rate of loss is caused by the failure of operators to make the planned investments to renew the network and repair leaks.

The core of the problem is that the private management of essential public services (health, transport, schools, etc.), in our case the water service, can only lead to high management costs, waste of resources, degradation of infrastructure, job insecurity and loss of professional skills.

All this was highlighted by the Comitato Umbro Acqua Pubblica, which sued Umbra Acque spa, the water service manager of 38 Umbrian municipalities, in the court of Perugia, with a popular action, due to the inertia of the assembly of municipalities that was supposed to control the activity of the manager. Instead of demanding that Umbra Acque spa respect the management contract, applying the penalties provided for if necessary, the assembly of municipalities continued for all these years to subscribe to everything that came from the manager without carrying out any control.

Read more...