Ejido la Sierrita de Galeana: Land Defense against the Canadian Mining Company Excellon

ProDesc has worked with the shared landowners of the community “La Sierrita de Galeana” in the state of Durango since July of 2007. We have provided legal support and consultation for their organizing efforts in the struggle to defend their lands from the devastation of the Canadian mining company Excellon Resources Inc.

The Community

The ejido (common landholding common in Mexico) of la Sierrita de Galeana is located in the municipality of Tlahualilo Durango. It consists of an area of 6,436 hectares. The ejido is composed of 127 shared landowners with 2,691 of the hectares designated as common use land. There is also an area designated for the “Agriculture and Industrial Entity of the Woman” and another sector reserved for the community school.

A large portion of the La Sierrita population is women, children, and the elderly. Due to the lack of work opportunities and the high level of poverty in the region, the men of working age have migrated to nearby cities such as Gómez Palacio or Ciudad Juárez and to the United States.

Community children have limited and insufficient access to education. The schoolhouse only consists of one room for three levels of Kindergarten, one room for six grades of elementary school, and a third room for the three high school classes through a “tele-high school.”

The inhabitants of la Sierrita have to pay weekly for imported water because there is no potable water, nor drainage. The community also lacks medical facilities, which means they must travel to the neighboring community, “Nombre de dios” for medical care. If they have an emergency, they must travel to the city of Gómez Palacio, Durango.

The Mine

The mining company Excellon de México, S.A. de C.V. is a subsidiary of Excellon Resources, Inc. of Canada. Currently, this company has a mine in the municipality of Mapimi, Durango. Excellon México first came to explore the region in 2000 and its mines were referenced on their website as the Platosa/Saltillera properties, 40 km north of Torreón. It is important to point out that the Platosa/Saltillera operations are Excellon Canada’s only mine. Excellon Canada has a market value of $193 million Strategies USD (based on June 6, 2007). At the end of fiscal year 2006, the company had $26.3 million USD in assets, $ 23.6 million USD in liabilities, and $2.7 million USD in profits. Their operations in fiscal year 2006 saw sales of $23.5 million USD.

Background

On May 2, 2004 the General Assembly of the Ejido approved the rental of four hectares of common use land for $300,000 pesos M.N. per hectare for a period of 30 years ($1,200,000 pesos M.N. in total) to Excellon México. Nonetheless, without the willingness of the General Assembly, in a meeting on May 26, 2004 in Gómez Palacio, DGO, ex-representatives of the Ejido commission signed a contract for the rental of twenty-six hectares to Excellon for 30 years for $1,200,000 pesos M.N.; the price of the four hectares authorized by the Assembly.

On February 14, 2007, the attorneys for the mining company contacted the current Assembly commissioners to let them know that the company is interested in “buying” another 2700 hectares but offering to pay for only 1100 hectares at $25,000 pesos per hectare. The landowners have decided to defend their land and enter in a negotiation process regarding the use and exploitation of their lands by the mine, and to avoid any threats of expropriation of the land if they do not sell. They also hope to be able to continue living in a dignified manner on their land.

La Sierrita 2007/2008

The use of the 27 hectares has damaged the land in several ways. Excellon’s exploratory convoy has destroyed the land by creating large holes, deforestation of the mountainsides, and the destruction of maguey cacti, which are used to make mezcal, bags, wells, and clubs for the use of the landowners. The drill grease makes plants and grasses nearby dry out, altering the nature of the soil and the ecosystem of the Ejido.

Contaminated water escapes from the exploration tunnels. This water creates a pool on parts of the Ejido of about one meter 20 centimeters in depth which furthers deteriorates flora and fauna which is also an important food supply for the community.

We worked with the community to create a strategic plan through the end of 2007 and invited representatives of Excellon de México to start a dialogue regarding a just and equal relationship between the mining company and the landowners of la Sierrita. After several failed negotiations and social action by the community, the vice-president of the mining company came to Durango to negotiate. A just contract was reached which includes the following points:

• A lease agreement for 1100 hectares of surface rights for up to 30 years for MX $5,000 pesos per hectare per year with annual renewals.
• A community development fund with an initial payment of MX $3,000,000 pesos and MX $500,000 pesos per year thereafter up to 30 years. The development fund will be managed by the community for such projects such as drainage and running water system.
• The community will sell the original 27 hectares on which Excellon currently conducts mining activities.
• Excellon promises to provide concessions for transportation of materials and the cafeteria as part of the mining operations.
• Excellon promises to provide hiring preference to La Sierrita community members
• Excellon will provide scholarships for children in the community for both basic and higher education.
• Excellon will construct a water treatment plant for the water extracted from the mine so that it may be used for agricultural use.