Concerns mount over cyanide rush in Bulgarian mining projects, European Commission urged to intervene

Two Bankwatch groups and the members of the Cyanide Free Bulgaria coalition outlined today at a press conference in Sofia the ongoing problematic issues hanging over the proposed introduction of controversial cyanide leaching at the Chelopech mining project and with the Bulgarian government's handling of the environmental procedures for wider use of cyanide in mining projects across the country.

The Center for Environmental Information and Education has lodged a formal complaint with the European Commission [1] related to infringements of EU law associated with the Integrated Pollution Prevention and Control (IPPC) permitting process for the cyanide installation at phase 2 of the Chelopech project, being promoted by Canadian mining company Dundee Precious Metals that has already received two loans from the European Bank for Reconstruction and Development (EBRD) totalling USD 25 million for phase 1 of the Chelopech project, as well as a USD 4.5 million loan from the EBRD for its operations in Armenia. [2]

Daniel Popov, of the Center for Environmental Information and Education and Bankwatch national coordinator, said: "The IPPC permitting for the use of cyanide technology at the Chelopech mine took place without due consultation with the concerned public downstream from the mine which we believe to be in breach of EU law, the Aarhus Convention on public participation and also Bulgarian legislation. Given the risks involved both for people and the natural environment with the use of cyanide technology, we call on the Commission to fully assess the extensive evidence presented in our complaint."

Representatives of the Cyanide Free Bulgaria Coalition also raised the deficiencies of the environmental impact assessment (EIA) procedure in Bulgaria which is subordinated to political decisions and economic justification, and thus fails to secure the protection of the environment and human health.

The Chelopech Mining cyanide project is one of two recently approved investments in cyanide leaching of gold in Bulgaria and at least two more proposals are at the preparation stage. A judgment of the Supreme Administrative Court accepted the arguments of the Coalition and cancelled the approval of the Chelopech Mining EIA on November 4 this year.

Fidanka Bacheva-McGrath, Bankwatch's Balkan coordinator, said: "In January it will be 10 years since the Baia Mare accident in Romania that compelled the European Commission to improve the EU's mining safety standards, bolstering accident prevention and accident response. Then Environment Commissioner Margot Wallstrm remarked that 'there is the need to further embrace a culture of openness, transparency and participation in this region.'

"The permitting process for the Chelopech Mining cyanide project has breached national and international legislation demonstrating that decision makers in Sofia still regard transparency and public participation as a nuisance, rather than as a prerequisite for securing environmentally and socially responsible investments."

The Chelopech case in Bulgaria is one of three gold mine projects financially backed by the EBRD that features in a new report from CEE Bankwatch Network entitled "Between a rock and a hard place - How local communities pay the cost of EBRD-financed gold mining projects." [3]

Pippa Gallop, Bankwatch's Research coordinator, said: From a cyanide spill injuring hundreds of people in Kyrgyzstan to land subsidence in Armenia and deficient public consultation in Bulgaria, EBRD-financed gold mining projects have had unenviable results so far.

"If the EBRD wants to change this it needs to stop financing the use of cyanide in countries with weak regulation, establish no-go zones for mining projects, such as glaciers, protected areas and ancient forests, and ensure that it only finances projects which have been subject to public consultation in line with national legislation and the Aarhus Convention."

For more information

Daniel Popov
Center for Environmental Information and Education/Bankwatch
Tel: +359 886 818 794
Email: dpopov AT bankwatch.org

Fidanka Bacheva-McGrath
Bankwatch Balkan coordinator
Tel: +359 899 876 095
E-mail: fidankab AT bankwatch.org

Notes for editors

1. The formal complaint to the European Commission is online and can be downloaded here.

2. More background information about the Chelopech project - phases 1 and 2 - can be seen at Bankwatch's web page dedicated to this project.

3. The new Bankwatch report Between a rock and a hard place - How local communities pay the cost of EBRD-financed gold mining projects is available to download here.

The report has been prepared to input into the EBRD's development of a new sectoral policy on its mining projects.

New video testimonies from Bulgarian women - "Mining re-sisters fighting against mining injustices" can be seen at Friends of the Earth International's youtube channel.