Tag Archives: miners Amazon

The $4 Trillion Blackmail: The Amazon is Ours not Brazil’s

More than two dozen financial institutions around the world are demanding the Brazilian government rein in surging deforestation, which they said has created “widespread uncertainty about the conditions for investing in or providing financial services to Brazil”. The call for action, delivered in a letter to the Brazilian government on June 23, 2020, comes as concerns grow that investors may begin to divest from Latin America’s largest economy if Jair Bolsonaro’s administration fails to curb environmental destruction. “As financial institutions, who have a fiduciary duty to act in the best long-term interests of our beneficiaries, we recognise the crucial role that tropical forests play in tackling climate change, protecting biodiversity and ensuring ecosystem services,” said the letter, signed by 29 financial institutions managing more than $3.7tn in total assets.

“Considering increasing deforestation rates in Brazil, we are concerned that companies exposed to potential deforestation in their Brazilian operations and supply chains will face increasing difficulty accessing international markets. Brazilian sovereign bonds are also likely to be deemed high risk if deforestation continues.” Deforestation in the Amazon rainforest has surged in Brazil since the election of Mr Bolsonaro, a rightwing former army captain, who supports opening the protected lands to commercial activity. In the first four months of 2020, an area twice the size of New York City was razed as illegal loggers and wildcat gold miners

Investors said they are particularly concerned about Brazil’s meatpacking industry, which risks being shut out of international markets over its alleged role in deforestation. Brazil’s JBS has been repeatedly accused by environmentalists of buying cows from deforested lands in the Amazon. In May 2020 more than 40 European companies, including Tesco and Marks and Spencer, warned they would boycott Brazilian products if the government did not act on deforestation. 

Excerpts from Investors warn Brazil to stop Amazon destruction, FT, June 23, 2020

Making Money in the Peruvian Amazon

The Sierra del Divisor region in the Peruvian Amazon was identified as a biodiversity conservation priority back in the early 1990s. More than 20 years later and Peruvians are still waiting – some more desperately than others given all the narco-traffickers, illegal loggers and gold-miners in or near the region.

What’s so special about the Sierra del Divisor? It’s the “only mountainous region” anywhere in the lowland rainforest, according to Peruvian NGO Instituto del Bien Comun (IBC), while The Field Museum, in the US, describes it as “a mountain range” rising up “dramatically from the lowlands of central Amazonian Peru” and boasting “rare and diverse geological formations that occur nowhere else in Amazonia.” Its most iconic topographical feature is “El Cono”, an extraordinary peak visible from the Andes on a clear day.

Sierra del Divisor is home to numerous river headwaters feeding into key Amazon tributaries, eco-systems, and a tremendous range of flora and fauna, some of which are endemic, some endangered or threatened – and some with the most wonderful names. Giant armadillos, jaguars, cougars, Acre antshrikes, curl-crested aracaris, blue-throated piping guans and various kinds of monkeys, including the bald – but very red-faced – uakari, all populate the region. Effectively, it forms part of a vast “ecological corridor” running all the way from the Madidi National Park in Bolivia in a north-westerly direction along much of the Peru-Brazil border.

21 indigenous communities and 42 other settlements would benefit from the Sierra del Divisor being properly protected, states the Environment Ministry, while ultimately over 230,000 people in Peru depend on the region for food and water, according to the IBC. In addition, in the absolute remotest parts, it is home to various groups of indigenous peoples living in what Peruvian law calls “isolation.”

In 2006 Peru’s government established a 1.4 million hectare temporary “protected natural area” in this region called the Sierra del Divisor Reserved Zone. Six years later a government commission agreed it would be converted into a national park, and, all that remains now, after a painful administrative process, several key advances made this year and indigenous leaders lobbying various ministries, is for Peru’s Cabinet to approve it and the president, Ollanta Humala, to sign off on it. That is how it has stood since early May 2015 – and still nothing….

Why such a delay indeed, this year or in the past? Might it have something to do with the infrastructure integration plans for the region, such as the proposed – and effectively already underway – road between Pucallpa, the Peruvian Amazon’s current boom city, and Cruzeiro do Sul across the border in Brazil? Or the proposed railway between the same two cities ultimately connecting to Peru’s northern Pacific coast, declared in the “national interest” some years ago? Or the proposed railway running all the way across South America from Peru’s Pacific coast to Brazil’s Atlantic coast, a long-mooted project which has received so much media coverage recently because of Chinese interest in financing it and the visit by China’s premier, Li Keqiang, to Brazil and Peru in May?

Or might the delay be explained by oil and gas industry interests? Perupetro, the state company promoting oil and gas operations, tried to open up what would be the entire southern part of the park for exploration before backtracking in 2008, while the London Stock Exchange-Alternative Investment Market-listed company Maple Energy has been pumping oil for years in a concession just overlapping the west of the proposed park. More significantly, Canadian-headquartered company Pacific Rubiales Energy runs a one million hectare oil concession that would overlap the entire northern part of the park if it was established, and conducted its first phase of exploratory drilling and seismic tests in late 2012 and 2013 in what would be the park’s far north. Clearly, it wouldn’t be good PR for either Pacific or Peru to explore for oil in, or exploit oil from, a national park, although it wouldn’t be the first time a concession and park have overlapped. Indeed, according to the IBC, it has been agreed that Pacific’s “rights” to operate will be respected if the park is created.

Excerpts from David Hill Peru stalling new national park for unique Amazon mountain range, Guardian, July 29, 2015