Spain - Asturias
The largest as-of-yet unexploited gold mine of Western Europe is situated in a village with fewer than 4.000 inhabitants: Tapia de Casariego. This small coastal town is part of Asturias, an autonomous region in the northwest of Spain with a population of just over one million inhabitants. It lives off tourism, fishing, cattle raising and milk production.
Ever since the Roman era, the Principality of Asturias has been characterized by a rich mining tradition which developed further toward the end of the nineteenth century. Thereby making coal one of many mined materials in the area. The ground contains a multitude of minerals and metals: mercury, iron, zinc, magnesium, copper, tungsten, tin, lead and also gold.
Figure 1 Asturias. Source: https://nl.wikipedia.org/wiki/Asturi%C3%AB_(regio)#/media/File:Localizaci%C3%B3n_de_Asturias.svg
The mining industry fell into decay from 1970 to1980. In this period, the Asturian coal fields became the least efficient and most vulnerable part of the Spanish coal industry. Between 1955 and 1985, Asturias lost 15,7% of all jobs in the region, and as many as 51% of all manufacturing jobs. The amount of jobs in mining reduced from 32.000 to 21.000 between 1970 and 1992. The total number of pits halved in the ‘80s to only about 14. Today most of its inhabitants are working in agriculture and the livestock and fishing industries.
Asturias has a total of 487 gold fields, all situated in the west of the province. Almost all of them were once exploited by the Romans. In the western zone of Asturias there are three so-called ‘gold belts’: Oscos, Narcea and Navelgas. The three sectors have different mineralization processes but are linked through cracks along a northeast-southeast axis. The largest mining projects that have been covered in the media are El Valle-Boinás and Carles, both of which are part of the Narcea-gold belt.
The gold reserves of Salave, a parish which is part of Tapia de Casariego, were first discovered by the Romans. Gold mining in the northwest of Spain then took off on a larger, more industrial scale. The Romans developed a special technique to exploit the gold: Ruina Montium. They built tunnels in the hills where water was poured in. The water pressure pulverized the surrounding rocks. Both this grit and the gold were then collected and led through greasy piles of wool or dense bushes so that precious metals would stick to it.
In this process, entire hills were demolished and tons of soil and rocks were moved. It is estimated that a total of 4 million cubic meters were dug up and transported, with more than 7000 kg of gold being excavated. While these numbers are certainly high, they pale in comparison to those of the largest open-pit gold mine of the Roman Empire: in Las Médulas, in Léon in western Spain, more than 93 million cubic meters of soil and rocks were transported elsewhere!
In order to supply enough water, dams and many canals were constructed. Many roads were built to transport the tons of materials. It is estimated that Salave’s mining industry consisted of around 200 people. Most of them were free, indigenous men coming from fortified villages nearby (forts): Figo and Castello de Rondello. The management of the engineers and all logistics were in the hands of the army who were based there and controlled the area together with a small group of public servants.
After the decay of the Roman Empire, almost all mining projects in the northwest of Spain ceased. Initially they were retaken by the Arabs, yet the excavation of the home grounds quickly ended again after discovering the American continent and its mineral richness. Spain’s own resources were left aside and all attention was geared towards the excavation of natural resources that belonged to the indigenous population of the Americas.
It took until the middle of the nineteenth century before more extensive mining projects took off again in Spain. In 1825 the first mining law was adopted and immediately there were many requests for mining concessions in the region. Between 1825 and 1964 exploitation permits were constantly requested for different types of minerals and metals: silver, molybdenum, iron, copper, zinc, tin, tungsten, gold and more.
Nearly all of the production was led by France and England. Most of the metals such as copper and iron were transferred to other European countries. This situation remained in place until the start of World War II. Afterwards, the demand in rapidly industrializing Spain quickly exceeded the available supply of minerals. Asturias, mostly known because of the large supplies of coal and fluorite, thus became one of the largest mining regions in Spain.
In the 1960s , many large mining companies began to travel to Salave to explore possibilities for gold mining. Exminesa (Cominco), Imebesa (Northgate), Río Tinto Patiño, GFSA (Gold Fields), CESA Charter Exploraciones (Anglo-American), Oromet, Newmont Gold Company (Newmont Mining Corporation), San Diego Gold Company (Lindex Corporation), Río Narcea Gold Mines are just a few of the companies that came to Salave to size up the situation. Those explorations resulted in the designation of an area for research that amounted to more than 62 square km.
In 2005, Río Narcea Gold Mines launched the first completely developed mining project in the region. It concerned a large open-pit mining project that would be installed along the coastline, at a mere 1,5 km distance from Tapia de Casariego. The consequences for the environment would be huge. Protests against the mining project started to emerge and led to the creation of the ORO NO platform. The movement and its members ensured that Río Narcea Gold Mines temporarily had to postpone its plans. In 2007 mining giant LundinMining bought the company in an attempt to re-launch the mining project. In the end, the concession ended up in the hands of the current owner, AsturGold (DagilevCapital Corporation), who recently changed its name to Black Dragon Gold Corp, as of October 2016.
Gold in Salave
In 2009, AsturGold acquired five concessions for exploitation from the former owner, Río Narcea Gold Mines (part of LundinMining since 2007). This way the company – registered on the stock exchanges of France and Toronto - gained access to an area of 433 hectares, supposedly containing immense gold supplies. The estimated amount of gold is 62 tons, which at the current price would be worth 2.254.878.000 Euro.
Figuur 2 Bron: http://fotos02.lne.es/2014/08/14/646x260/oro-asturiano.jpg
The gold supplies of Salave are buried in a dense pine and eucalyptus forest. The lakes ‘Lagunas de Silva’ are situated here. These lakes were a result of the excavations by the Romans in the first and second century AC. The removal of materials back in those days resulted in large holes with a diameter of several tens of meters, of which the deepest point is thirty meters under the ground. Due to the high density of the substratum, the water accumulated here, thus creating the Lagos de Silva.
Figuur 4 Bron: Salave en Las Lagunas de Silva. Bron: http://geolag.com/el-oro-de-asturias-salave-y-las-lagunas-de-silva/
During the acquisition of the concessions in 2009, Cary Pinkowski – a Canadian entrepreneur and the CEO of AsturGold – announced that he wanted to reopen the mine of Salave as soon as possible once they acquired all the environmental licences. The management hoped that everything would be ready in September 2011 so as to be able to present the project to the Principality of Asturias. It was planned that the mine would be operational for at least ten years and that on average 3500 kilograms of gold would be excavated each year.
In contrast with the previous owner of the concession, who wanted to explore the region through open-pit mining (resulting in the authorities’ rejection of the project), AsturGold elaborated a project that would have according to them a lesser impact on the environment. Through a system of underground mining in which the gold is transported via underground conveyor belts to the treatment area – which would still be situated at 2.7 km inside the extraction area – the passing of heavy trucks would be avoided. It was promised that the mining project would create 250 direct jobs, whereas the construction of the mine itself, which would take around 21 months, would create some 70 jobs. If everything had gone according to plan, the first gram of gold would have been exploited in 2014.
The new project concerns gold mining on the coast, involving large transfers of materials. This process will risk polluting the region.
The reaction of the population of Salave was divided regarding the mining project. Supporters in favour of the project united under the slogan ‘Trabajo Ya Mina Sí’ (‘Jobs Yes, Mine Yes’) and affirm that 70% of the population is in favour of the mine. They see the risk of environmental pollution as negligible and insist that the water of the Porcia River would not be used: the mine would work on the base of a closed circuit. Furthermore, ‘Trabajo Ya Mina Sí’ argue that there is still a great crisis in Spain. The unemployment rate in the region is over 40% and the population has never been able to make a living out of tourism. In other words, a new mine would boost the region’s economy. Oro No claims that ‘Trabajo Ya Mina Sí’ was engineered by AsturGold, and that the President was employed and paid by the mining company.
Social mobilization: ORO NO
‘ORO NO’ provoked a lot of opposition and is a social platform that was established in 2005 with the common objective of stopping the launch of a gold mine in Tapia de Casariego, and in extension in the rest of the world. The organization has more than 500 members and more than 3000 followers. One of the arguments ORO NO uses is the potential increase in tourism in the region. Although it has not flourished fully, they see the potential of the rise in tourism. A mine does not only involve the risk of environmental contamination, but it could also quickly halt the increasing influx of tourists.
In addition to this they state that the strategies of AsturGold to convince the Principality of Asturias of the necessity of a mine have been based on lies and manipulation up until this point. These strategies have resulted in a lot of conflicts between the inhabitants. Through infiltration in the local politics and the administrative services, confusion and discord have arisen about the number of new jobs that the mine would provide and the amount of taxes that the municipality could levy. Furthermore, ORO NO is not convinced that AsturGold has completely abandoned its plans about open-pit mining. They predict that the company will return to the open-pit plans at a later stage.
The members of ORO NO are still concerned over the limited capacity of the administrative authorities that have to approve or to reject the request. Therefore they regularly consult lawyers so as to stay up to date with the status of the concessions and they themselves calculate the risks in economic and environmental terms. Finally, they are convinced that AsturGold is only in pursuit of capital and uses false promises with regard to the number of jobs that would be created. They stress that the majority of the population lives from agriculture, cattle breeding and fishing, and that the miners mainly come from other regions in Asturias. The arrival of a mine and the corresponding pollution would seriously threaten the source of revenues of the indigenous population.
Figure 5 ORO NO. Source: https://www.vice.com/es/article/la-mina-de-oro-mas-grande-de-europa-se-e...
Consequently, in June 2011, more than 500 people protested against the opening of the Canadian AsturGold gold mining project, seeing it as a threat to tourism and cattle breeding. At that moment, the project was still in the negotiation stage.
The opposition of ORO NO and the doubts that arose among the Commission for Environmental Issues in the Principality of Asturias (CAMA) and the Hydrographic Confederation of Cantabria were a result of the fact that AsturGold announced in December 2012 that it would not use cyanide in order to exploit gold. In July 2012, the Hydrographic Confederation of Cantabria (part of the Ministry of Agriculture, Alimentation and Environment) had published a report in which it stated that AsturGold had not fully investigated the polluting effects of a mine on the local water resources. Furthermore, the company had not proposed sufficient alternatives to comply with the environmental standards. By declaring that it would not use cyanide, the company considered itself to have met one of the last environmental requirements of the authorities.
On 18 december 2013, AsturGold submitted a new document detailing the environmental impacts of the project. The study was again rejected in January 2014 by the Hydrographic Confederation of Cantabria, because it did not meet the environmental standards. Then AsturGold upped the ante. More than one hundred million dollars were invested in studies and supplementary documents so as to comply with the requirements of the Confederation. The mining company also accused the Confederation of wanting to sabotage the project. Nevertheless, at the end of 2014, the project was again rejected by the Asturian authorities. The effect of the mining project on the water of Salave had been calculated as more severe than what AsturGold had claimed.
In 2015, AsturGold was sanctioned by the Supreme Court of Justice for offences committed by the company during the soil testing period in Salave in 2013.
From AsturGold to Black Dragon Gold Corp
With AsturGold close to bankruptcy, the project came to a standstill until in July/August 2016, the company received a capital contribution from Lionsbridge, Westech International and RMB Australia Holdings. As a result, AsturGold was able to pay off the debt that they had racked up. After the mining project (that in 2016 was still in a legal stage) was rejected by the Principality of Asturias, attempts were made to relaunch the project with the new contributors. In September of that same year, the newly Australian-Canadian AsturGold resumed contact with the local and regional authorities.
In October 2016, it was decided that the mining company should be rebranded as a result of this sale. Black Dragon Gold Corp was chosen. This was part of a strategy to attract new investors. Around the same time, the company announced that it would soon resume contact with the authorities so as to relaunch the project as soon as possible. The Principality of Asturias reacted by stating that they were waiting for the outcome of the dispute between the Principality and Black Dragon Gold Corp, a case previously brought to court by Black Dragon, after the rejection of the mining project. It is now up to the Supreme Court of Justice to judge the case.
ORO NO is now waiting anxiously to see if Black Dragon Gold Corp will be granted all the required environmental permits. There have been various attempts to categorize Salave under the network of protected areas ‘Red de Espacios Protegidos de Asturias’ (Network of Protected Spaces in Asturias). However, until now these attempts have been unsuccessful and the region does not enjoy any form of protection. Nevertheless, there are many reasons why the area should be considered a reserve: both the landscape and the archeological value of the understudied Roman settlements are often mentioned. Also, the region’s biological make up is highly valuable since Salave contains one of the scarce ‘wetlands’ of Asturias, with many protected fauna and flora. Further, the economic impact (a great concern for the population) , is worth considering, as protecting the region has the potential to attract tourism.
Critcher (C.), Parry (D.) & Waddington (D.), “Regulation, RestructuringandRegeneration in Coalfields: Three European Cases”, in Edwards (P.) &Elger (T.) (eds.), The Global Economy, National StatesandtheRegulation of Labour, Mansell, London & New York, 1999, pp. 87-110, p.103.
Berekening op 05/02/2017, aan 36.369 euro per kilogram + https://www.oroyfinanzas.com/2011/06/el-mayor-yacimiento-de-oro-de-europ...