Background to the Newmont/Normandy Bergama case

Background to the Newmont/Normandy Bergama case

Leader of Peasants Opposed to Gold Mine Arrested in Turkey - The Mine Remains Open Despite Court Order

by Üstün Reinart

April 15, 2002

Oktay Konyar, (nicknamed Asterix because of his drooping moustache), the leader of the peasants opposing a goldmine in a fertile valley in Bergama, has been arrested in the town of Soma in Western Anatolia. In the afternoon of April 12, 2002, Konyar stopped at Soma, on his way to Ankara, and went alone into the police station to inform the police that he was going to hold a news conference. He was taken to prison and charged with "insulting a police officer." At a hearing the next day, the judge decided to keep Konyar in prison for an unspecified time - until trial.

Konyar, a strong opponent of Neo-Liberalism and the New World Order, was a follower of Gandhi - and used civil disobedience particularly well, emphasizing non violence and a respect for laws.

"All of us may have recourse to the law one day," he frequently said at panel discussions and press conferences. He repeatedly called on the Turkish Government to respect the country's laws.

In Ovacik, near Bergama in the Northern Aegean region of Turkey, thousands of peasants from 17 villages within 5 kms of the Normandy Goldmine have been resisting the mine for 12 years now. The Turkish courts have sided with them and ruled that the mine poses a serious risk to human health and environment. In 1997, the Turkish State Council
ruled that the mine was violating the country's constitution and that it should close. But the Prime Minister's office commissioned a report from a scientific institution, (TUBITAK) saying the mine had improved its safety standards. A year ago, in April 2001, the Turkish Minister of Health issued Normandy a one-year trial permit.

But in late February 2002, an Administrative Court in Izmir ruled that the trial permit was violating the public good, and it issued an injunction against the mine. The mine was to close on April 2.

Ironically, the Turkish government violated the country's laws once again on that date, by passing a parliamentary decision to permit the Normandy Goldmine to continue production. And in protest, the peasants vowed to continue civil disobedience.

Their leader Oktay Konyar's arrest comes at a critical time for the mine.

The Normandy goldmine is situated 50 meters from the village of Ovacik, on prime agricultural land, near nut-bearing pines and olive groves. The valley produces high-quality cotton, olive oil, figs, grapes and tobacco. The villagers and many scientists in Turkey are concerned about the cyanide that will be used to leach the ore, and that will activate various heavy metals such as arsenic, lead and antimony. Apart from the cyanide, the daily dynamite explosions and the destruction of nut-bearing pines and olives in the region also disturb many people deeply.

Reeling from an economic crisis, Turkey has embraced the IMF - WTO recipes of privatization, de-regulation and unconditional surrender to foreign investors. The Turkish Parliament has been frantically passing legislation to remove obstacles before foreign companies and render the country's environmental and agricultural laws ineffective. The peasants of Bergama led by Oktay Konyar have been in the forefront of the resistance to this frenzied neo-liberalism in Turkey.

The defenders of the goldmine argue that it will bring desperately needed revenue to the Turkey. But the production of an ounce of gold is known to cost more than $300.00 and in February 2002 the price of an ounce of gold was $276.00. Simple arithmetic shows that even the profits of the company seem uncertain, let alone any economic gain for the country.

The economic gains from agriculture in the region have been obvious, however. In 1997, the records of the town of Bergama show that local produce (including cotton with fine fiber, and olive oil) contributed $42 million to the economy.

Normandy's Turkish Foray

by Bob Burton

Mining Monitor Vol 1 No 2 1996

A 1994 Department of Foreign Affairs and Trade cablegram, leaked to Mining Monitor, reveals that Australian Government officials and former member of Parliament Mr Alan Griffiths actively lobbied on behalf of Normandy Mining Ltd's Eurogold mining project in Turkey describing Normandy Chairman Robert de Crespigny as "a leading environmentalist".

During his three-day tour, between 2nd and 5th August 1994, Mr Griffiths had meetings with the Ministers of Tourism, the Economy, Environment and Energy. Mr Griffiths was accompanied by the Australian Ambassador, and, in the meeting with the Minister for Environment, the General Manager of the Eurogold project, Mr Ashley.

At the time of the meetings, Alan Griffiths was a backbench MP, having been forced to resign as Minister for Resources following revelations relating to the running of a sandwich shop that he part-owned. At the time the Normandy Mining proposal for a gold mine at Ovacik had not obtained environmental approvals.

The cablegram records refers to Griffiths indicating that "he fully understood the need to address environmentalconcerns but assured his interlocutors that Eurogold would put in place environmental controls the equal of any in the world. He said that de Crespigny, Chairman of Normandy Poseidon, was a leading environmentalist and, as such, an adviser to the Australian Government. Mr Griffiths acknowledged that the use of the term "cyanide" raised concerns (he had them when first becoming Minister for Mines) but cyanide processes were a traditional part of gold mining worldwide ... these processes were controllably safe".

In the meeting with the Minister for Tourism, Mr Culhaoglu, Mr Griffiths argued that "gold mining should not interfere with the tourism industry near Bergama (ancient Pergamon). In fact, in Australia gold mining was a tourist attraction". The DFAT cablegram notes that the Minister was "sceptical".

The Turkish Minister for Environment, Riza Akcali, advised that the region was rich in artefacts and historical sites and was important for tourist income. The DFAT cable records him as stating "it is not enough that I and convinced and the technical committees convinced". What would the company do if the public lay down in front of the machines? The Mayor of Bergama was concerned. How could public opinion be overcome? ... It would be futile to proceed without public opinion being on side. A public relations program should be undertaken but the interested firm was not enthusiastic".

The cable records Mr Griffiths stating that he thought that Eurogold could support a public relations program but wanted the environmental approval beforehand. "Once approval had been granted, the education process should be undertaken. This procedure is not unknown in Australia," the cable states. The cable also records that the Australian "Ambassador noted that he had recently been to the Izmir/Bergama region to assist in the PR process". The Environment Undersecretary, Bursa, stated that it had expected the company to do more on the public relations front and rejected a suggestion from Griffiths that prior approval be granted to be followed by a company PR program.

Following the meeting Griffiths went to visit the mine site at Ovacik and met with the Mayor of Bergama who was equivocal about the project. The cable records the Mayor as revealing "continuing reservations supported by recent information from the New Zealand anti-mining lobby".

The DFAT officer summarises by stating that "we will continue to work with the company, drawing on the department recent useful collection of information in maintaining the pressure. Eurogold still faces the dilemma of how to handle (and how much to spend on) a public relations exercise. Ambassador has sent follow up letters to Ministers".

In late March 1996, Normandy Mining's $45 million project was approved. The project is to be developed as a combined open cut and underground mine with a plant that can process 300,000 tonnes of ore a year. Normandy Mining Ltd an its subsidiary, PosGold Ltd, effectively owns 40% of the project through the group's majority shareholding in their international resources arm La Source Compagnie Miniere SAS. The remainder of the Eurogold project is owned by Canada's Inmet Mining Corporation, formerly Metall Mining Corporation. Normandy expect construction to commence in September this year.

Normandy has also proceeded to a full feasibility study on another gold mine proposal in Mastira in the far east of Turkey and is looking at another gold prospect at Kaynarca.

Normandy's Turkish Mine Stumped by Court Ruling

Mining Monitor - Vol 2 no 3 pages 1&3

Bob Burton

The construction of a gold mine in one of Turkey's most fertile agricultural regions by Eurogold, 40% owned by Australian company Normandy Mining, has sparked bitter opposition from local people who on one occasion occupied the mine site.

The people of earthquake prone Ovacik and other villages near Bergama live by cultivating cotton, tobacco, tomatoes and olives and by raising sheep and cattle. The area is also the site of the ruins of the Aegean city of Pergamon which attracts thousands of tourists per year.

Following a major lobbying campaign by Normandy, including support from Australia's Ambassador, and the former ALP backbench member Alan Griffiths, the Eurogold project received government permission to proceed (see "Normandy's Turkish foray", Mining Monitor No 2). Eurogold is 40% owned by Australian mining company Normandy Mining through its international resources arm, La Source Compagnie Miniere SAS.

The mine will take up 100 hectares of land and use cyanide for the processing of the ore. "If the cyanide mixes with our water, we will be poisoned", said Minir Aldor. Eurogold officials insist that technology will render the cyanide solution harmless. Hayri Ogut, Eurogold's public relations manager declared: "You can even drink it" , although he did not offer to do so himself.

Haydar Evtal, leader of the nearby village of Narlica, says that during the exploratory phase, the company drilled at night: "in the morning, the villagers saw that the water had turned white and there was a strong smell of motor oil . for four months we couldn't drink the water". Eurogold said that it would stop drilling until permission was granted by the village, and worked to convince the villagers that they would benefit from the mine.

Company representatives also tried to tell the local communities that the US-based Sierra Club had stopped protesting against cyanide heap leaching. But this policy change was news to Sierra Club Conservation Director, Bruce Hamilton: "Eurogold should not say that the Sierra Club withdrew its objections to the technology, we have not."

Eurogold has spent about US$100,000 a year on promotional materials, excluding advertisements, to convince the public that it is "bringing life not death" to the area. The people of Bergama are not, however, changing their minds. In a recent unofficial referendum in eight villages, "89 percent of those eligible voted, and they all voted no to the mine", said Bergama mayor, Sefa Taskin.

The villagers of Bergama took their case to court to try to force the company to leave, but Eurogold won. A group of 600 people appealed this decision. They filed a lawsuit against the Environment Ministry for approving the operation. In late May the High Court upheld the appeal.

Izmir Lawyers for the Environment have sent a report to the Prime Minister to ask that the High Court decision, which ruled that the mine should be stopped due to the risks it poses to human health and to the environment, be implemented. The decision, based on human rights protection in the Turkish constitution, should have taken effect on 27 June.

Eurogold has continued construction however because it maintains that the decision does not have to be implemented until a lower court in Izmir reconsiders it. The constitution states that if a court in Turkey rules on an issue the ruling must be implemented within 30 days.

On 30 June, villagers of Bergama blocked roads to prevent empty cyanide containers from being brought to the proposed Eurogold gold mine site. Turkish security forces tried to stop them while 2 trucks were overturned and an ambulance belonging to the company was set on fire at the mine site. 35 people were arrested, and farmers going to their fields the following day were also taken into custody. Since then protests have continued.

In late August 250 villagers travelled 565 kilometres from the town of Bergama to occupy the Bosporus bridge linking Asia to Europe with banners stating "No to cyanide gold, until we die". The following day Eurogold told a news conference in Ankara that "the best way to decrease the pressure is to demonstrate our process is safe". It proposed that the company be allowed to operate the plant for a two-month trial period.

From the outset Normandy knew that there would be strong opposition. A leaked Australian Department of Foreign Affairs and Trade cable recorded that the Turkish Minister for the Environment, Riza Akcali, warned lobbyists for Eurogold "What would the company do if the public lay down in front of the machines? . It would be futile to proceed without public opinion being onside".

Former Labor Government Environment Minister, Ros Kelly, is now a member of Normandy Mining's International Board. She told Mining Monitor that most of the opposition to the mine comes from the Mayor of Bergama. "You can't seriously object to this on environmental grounds. This is way in excess of any mine in Australia" she says. Normandy's Australian operations might not have detoxification plants or double lined tailings dams but Normandy she says has a "policy of exceeding normal standards".

However she acknowledged that "the whole project could have been handled a lot better with the community". The protests she says are "about a conflict of land uses".

Eurogold Halted

Mining Monitor - Vol 2 No 4 December 1997

In mid October a Turkish administrative court ruled against the use of cyanide in the Eurogold project in Western Turkey. The court ruled unanimously that "the process of allowing the operations of a gold mine via cyanide-leaching method is not in line with public benefit. For the above reasons, the court decided unanimously on October 15 to cancel the process subject to this case". Eurogold claimed that the court decision had not been forwarded to them and that their "lawyers were looking into the matter".

Despite an earlier ruling the Eurogold consortium, which is partly owned by Australian company Normandy Mining, continued the construction of the plant. Just days after the ruling Normandy held its Annual General meeting. Normandy's Chairman, Robert de Crespigny told shareholders that the Ovacik mine would be one of the three important sources of profit for the next ten years.

De Crespigny told shareholders that "for some years now we have faced a small but determined group of opponents who have sought to use the opposition to Ovacik to further their political careers. Our opponents continue their hysterical and scientifically nonsensical crusade against the use of cyanide in gold processing, which has lead to bomb attacks on our offices in Izmir and Bergama, violent demonstrations at the minesite with looting and vandalism and an endless parade through the courts". However shareholders were not told of the defeat in the courts that occurred just days beforehand.

In a letter to the Australian Greens Senator, Dr Bob Brown, de Crespigny claimed that "the genesis of our difficulties appears to be the joint venturers' steadfast refusal to pay or provide financial inducements to a select few Turkish community leaders". He claimed that Normandy regards the project as one "which adheres to the highest environmental standards and is in keeping with our goal of employing and empowering local communities and indigenous peoples".

The Australian Government confirmed in response to a question by Senator Brown that the Australian Ambassador, along with French and Canadian Ambassadors, had lobbied the Turkish Government in support of the project. It dismissed the petition from members of the Turkish community in Australia claiming that "judged by the number of signatures, opposition to the project in the Turkish community in Australia would appear to be
confined to a small minority". While the Government confirmed that it did not hold copies of the Turkish Government assessments the Australian Government supported the project as "this is a major investment by an Australian company, which will add considerably to the depth of Australian-Turkish commercial relations". The Minister for Foreign Affairs
indicated that Eurogold intends after an initial period of operating "to invite international inspection of the minesite to verify its claims that the process does not cause any environmental problem".

Legal Setbacks for Ovacik Activists

Mining Monitor - Volume 6 Number 2 July 2001

Villagers opposing the operation of Normandy Minings Ovacik gold mine in Turkey suffered a legal setback when an appeal court overturned an earlier decision by the Izmir Administrative Court rejecting approval for the use of cyanide by the mine. The court decision came on top of a leading mine opponent being sentenced to a nineteen month gaol sentence.

The proposed gold mine has encountered strong opposition over the last decade, which culminated in the 1997 Supreme court ruling that inadequate precautions to protect public health had been taken specifically in relation to the use of cyanide in the processing plant. Ever since, Normandy has been lobbying the Turkish Government to allow the plant to
proceed, including enlisting the support from Australian government ministers.

Early last year Normandy wrote to the Australian Environment Minister, Senator Robert Hill, the Science and Industry Minister, Senator Nick Minchin, Foreign Affairs Minister, Alexander Downer, and Prime Minister John Howard requesting their support in lobbying their Turkish counterparts to support the mine. Normandy's Public Affairs Manager, Dr
Chris Anderson, told MM that the letters were "basically saying 'we are Australia's largest investor in Turkey, we wondered if you would be willing to write to your counterpart to vouch for our reputation in Australia'".

"We didn't ask them to interfere in any way, shape or form . all we did is say 'vouch that Normandy is a big Australian company that operates safely and properly in Australia, and really just a referee report I suppose", Anderson told MM. Anderson insists the point was not lobbying but simply informing the Turkish Ministers. "We didn't ask them to intervene. The Turks wouldn't accept any kind of heavying from outside politicians anyway", he said.

Hill, Minchin and Downer ­ all representatives of the Liberal Party hailing from Normandy's home state of South Australia ­ agreed. Hill wrote to the Turkish Minister for the Environment, Mr Fevzi Aytekin, praising Normandy for being a signatory to the Minerals Council of Australia's Code of Environmental Management, having a corporate
environment policy and employing an environmental management system.1

Minchin was more direct in appealing to the Deputy Prime Minister, Mr Cumhur Ersumer, that the government issue permits to allow the mine to re-start after a court order prevented the plant from operating. Normandy, he wrote "is actively working with your government to reinstate the operating permits for the gold mine at Ovacik . I would seek your support for the issuance of these permits at the earliest convenience".2 Downer too requested that his counterpart, Mr Ismail Cem, lend his "assistance to ensure that the permits for Eurogold are issued as quickly as possible".3 For his part Howard broached the subject of the mine when he met with the Turkish Prime Minister at the ANZAC Day service at Gallipoli last year. Following the lobbying campaign, the Turkish Prime Minister
directed government officials to allow the mine to proceed.

In late May the leader of villagers, Oktay Konyar, was sentenced to nineteen months jail under draconian laws drafted by the military following the 1980 coup restricting the right to protest. Anderson insists the latest charges Konyar faced were "for membership of an
illegal political party of which Turkey has quite a few" and were totally unrelated to his campaigning against the mine. Leading local activist, Birsil Lemke, told MM the charges were for organising protests against the mine without permission. "It is not true that Oktay Konyar is member of an illegal party ... [he] is a member of the oldest Turkish party (CHP) - Social Democrat ­ founded by Mustafa Kemal Attaturk ­ the 'founder' of Turkey", she said.

1 Senator Robert Hill, letter to Mr Fevzi Aytekin (Minister for the
Environment, Republic of Turkey), 21 February 2000.
2 Senator Nick Minchin, letter to Mr Cumhur Ersumer (Deputy Prime
Minister,Republic of Turkey), 21 January 2000.
3 Alexander Downer, letter to Mr Ismail Cem (Foreign Minister Republic
of Turkey), 17 February 2000.

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