Resolution of the European Parliament on General Prohibition of Cyanide Based Mining Technologies in the European Union

On May 5, 2010, the European Parliament issued Resolution No. (2010)0145 requesting the European Commission to submit a proposal for the total prohibition of the "use of cyanide based mining technologies in the European Union before the end of 2011", in order to protect the water resources and ecosystems from cyanide contamination resulting from mining activity. Furthermore, said Resolution requests the European Commission and its Member States "not to endorse directly or indirectly any mining projects in the EU which use cyanide based mining technologies until the general prohibition is in force, and not to endorse projects of such nature in third countries."

Many of the arguments invoked by the European Parliament in the recitals of the Resolution hereto lack solid grounds, and basically, a "backup" prohibition is being proposed. This article does not intend to criticize the technique followed by the Resolution under analysis, but simply to mention the repercussions that it may have in Argentina.

The European Parliament's request for support regarding prohibition of cyanide based mining technologies within its territory to the European Commission is not particularly worrisome for Argentine mining. However, the fact that the Resolution requests the European Commission and its Member States not to "endorse projects of such nature in third countries"  is troublesome.

Although the Resolution is non-binding per se, since it constitutes a mere recommendation to the European Commission and to its Member States, its effects might have a serious impact on countries in which a great number of mining developments which apply cyanide lixiviation technology are being carried out (since there is no other method as effective to separate minerals from rocks) and in which mining based on said technology has become -unlike in the European Union- a pillar of their economies.

We must wait for the determination of the Member States, since if for example, the non-endorsement of projects upheld by the Resolution above affects European mining companies carrying out activities in countries in which cyanide lixiviation technology is applied, this would damage mining development severely in said countries. Firstly, the ongoing projects would be destined to fail once left unsupported. Even worse, if the non-endorsement being promoted were to reach financial institutions, it would be practically impossible to obtain European financing for new projects.

Consequently, it would be sensible for the European Parliament and Commission to ponder the effects of initiatives such as the one being proposed, since these may result in adverse consequences for countries such as Argentina, in which metal mining is growing and turning into a pillar for the economic development of remote and stagnated areas.