[Unofficial English translation by BHRRC]

Violation of human and environmental rights in the Province of Jujuy

In May 2024, FARN sent two letters to the China National Offshore Oil Corporation (CNOOC) and the China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters (CCCMC), denouncing the serious situation of human rights and environmental violations in the province of Jujuy, in the region of Salinas Grandes and Laguna de Guayatayoc. The communication calls on both CNOOC and the CCCMC to comply with their own standards, contained in the Guidelines for Social Responsibility in Overseas Mining Investment (2017) and the Chinese Due Diligence Guidelines for Responsible Minerals Supply Chains (2022).

In the case of CNOOC, the company is a shareholder of Panamerican Energy Group, whose subsidiary Lithos Minerales del Norte S.A., is the concessionaire of 13 lithium and borate mines, with a total area of approximately 32,000 hectares in the Salinas Grandes area, Jujuy Province. This represents CNOOC's first foray into lithium mining in Argentina.

The CCCMC is a ‘semi-official’ trade organisation that collects, compiles and analyses data that is then used by the Ministry of Commerce of the People's Republic of China to develop public policies on the mining sector. It also proposes and approves the abovementioned guidelines, in order to establish environmental and human rights protection criteria for Chinese firms investing abroad. Recently, the Chamber has announced the establishment of a complaints mechanism for non-compliance with the guidelines, which is not yet officially operational.

These letters state that the exploration and extraction of lithium in the region of Salinas Grandes and Laguna de Guayatayoc does not have the Free, Prior and Informed Consent of the indigenous communities who traditionally occupy these territories and who, on the contrary, have expressed their opposition to the mining activity. It is also reported that the environmental authorisations granted by the provincial government for lithium exploration in Salinas Grandes have been carried out in an opaque manner, without access to information and with serious breaches of applicable national and international regulations. In this regard, it was pointed out that the region is extremely arid and fragile, and there is no updated environmental baseline to date to account for the hydrological and hydrogeological risks associated with lithium brine mining, which consumes large quantities of water.

At the same time, the CCCMC and CNOOC were informed that the issue of the granting of mining permits is pending before the Supreme Court of Justice of the Nation and, although the issuance of an injunction is still pending, this could compromise any investment made in this regard.

To date, both letters remain unanswered and the rights of indigenous peoples continue to be violated.

Mining activity continues to be authorised despite incomplete and insufficient Environmental Impact Assessments, which do not account for the real risks of mining in the area, since there is no updated hydrological or hydrogeological information, nor are the details of the authorised activities known, i.e. the amount of water to be used, the number of drilling wells or their impacts on the current water balance. Nor is it publicly known how many projects have been authorised in the same watershed, and no cumulative impact studies have been carried out to understand the impact of multiple mining projects on the hydrological cycle.

It is urgent that CNOOC review its decision to invest in lithium mining activity in the Salinas Grandes and Laguna de Guayatayoc watershed and, at the same time, that the CCCMC take action and get involved to ensure that Chinese investments abroad comply with applicable human rights and environmental regulations and respect local indigenous communities.