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Last Update: July 16, 2008
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- Paper Pulp Mills - Uruguay
- Corporate Accountability and Human Rights
- Climate Change and Human Rights
Botnia Mill Construction Stops Following Serious Accidents
Argentina to inform International Court of Justice of Contamination and Human Health Impacts of Persistent Security Hazards and Accidents
August 17, 2007 – Uruguay. In yet another point of contention in the ongoing Uruguayan border pulp mill dispute with Argentina, the fears of local communities with respect to the expected contamination from the Finnish pulp mill in construction by Botnia came true, even before production has begun! An out of control cloud of deadly sodium sulfate gases coming from caldron testing underway at the Botnia mill, inflicted at least 30 construction workers and placed at least nine of those in hospitals, two of which remained in crucial condition as of yesterday. An additional three local residents across the border in Argentina, who went to the international bridge to record the accident were also exposed to the deadly gases, treated for lesser injuries and released. Their intoxication has been recorded as evidence to be submitted to an ongoing international bilateral legal dispute related to the mill project.
The Argentine government indicates that it will file new evidence related to these incidents to the International Court of Justice (ICJ), where it maintains an open dispute with Uruguay over alleged violations to the Uruguay River Treaty, stemming from the unilateral authorization of the Botnia, without Argentina's consent. The recent accidents serve to prove that Argentina's claims of risks to health and to the environment, are absolutely real.
Botnia workers represented by the SUNCA Labor Union, stated that Botnia, was not able to guarantee safe and healthy work conditions , as could be concluded from the string of accidents that have occurred at the mill under construction, a direct consequence of Botnia's rushed construction schedule to finish the plant before a resolution of the ICJ dispute could be reached. SUNCA has called a strike and halting of construction indefinitely, or until safer working conditions could be guaranteed.
The ICJ has indicated, that if Uruguay is found to have violated the Uruguay River Treaty, the court could order the dismantling of the mill, despite the many millions of dollars already invested by Botnia in construction, and promised by financial institutions to the project, including by IFC, Calyon and Nordea. This would be a devastating blow to the investment, and a stronger blow to financial investors in Metsa Botnia, which trades on various international exchanges.
The assumption by the Finnish Metsa Botnia, the project owner, that the local and international conflict would go away as financing was confirmed for the project, and as the mill construction completed, turned out to be flawed.
The Argentine Foreign Ministry, alarmed by the events, summoned the Uruguayan ambassador to Argentina, Francisco Bustillo, to transmit their “serious concern” for this grave incident. Jorge Taiana, Argentina's Foreign Minister indicated that “Argentina will continue to defend its rights relative to the Uruguay River and continue to oppose the Botnia project, which is illegal”. He indicated that these incidents make a critical contribution to the open case at the ICJ.
The Uruguayan government, who yesterday, already knowing about the incident at Botnia, but who had chosen to limit comments to criticizing an individual from Gualeguaychú who suggested that there might be terrorist attacks against Botnia, has now recognized the severity of the situation and has indicated that it will take measures against Botnia. The Uruguayan government sent labor inspectors to determine the nature of the chemical accident and the risks for workers and local communities.
According to the news agency Telam, the Uruguayan Inspector General, María Narducci, admitted that “there were preventive errors that lead to the incident on the part of the Finnish Botnia”, and indicated that some form of sanction would come from the accident.
