environment

Mine ordered to halt operations

ANAM has fined a mining company $1.9 million for environmental damage.

Carlos Lemos/la prensa

Stopped: ANAM ordered work halted at the Petaquilla Gold mine because the firm did not have an approved EIA.1121401

ANAM, the government's primary environmental agency, has ordered Petaquilla Gold to suspend mining operations in Molejón and nearby places.

The measure also applies to its affiliated companies: Minera Petaquilla, Petaquilla Minerals, and Petaquilla Minerals LTD.

ANAM said the order is in effect until the company receives approval of its environmental impact assessment (EIA), which is still under evaluation.

ANAM also imposed a $1.9 million fine against the company, of which $900,000 will be used to clean up environmental damage caused by the company's operations.

According to an ANAM resolution, the company's operations adversely affected the area around Cerro Petaquilla, including the Molejones, San Juan and Turbes rivers. The affected area was approximately 50 hectares.

The ANAM resolution stated that the mining activities were undertaken without the application of mitigation measures. This caused environmental damage, such as soil erosion, loss of biodiversity, and decreased water quality.

“The environmental impacts are progressive, and will increase if operations continue without the required permits and studies,” the resolution stated.

According to ANAM documents, the company failed to meet several standards, including the completion of an EIA before beginning work.

In 2005, ANAM started investigating the company's actions, but stopped when the firm filed a lawsuit with the Supreme Court. The lawsuit sought to declare ANAM's actions illegal, as well as to obtain an executive order that outlined penalties for having initiated work without an EIA.

The court later decided, however, that ANAM was correct in demanding that the company complete an EIA before beginning work.

Officials with Petaquilla Gold could not be reached for comment about the situation.