GREENPEACE WARNS OF FURTHER WATER CONTAMINATION IN ROMANIA AND HUNGARY

14 March 2000

AMSTERDAM -- In a report released today, Greenpeace warned of the risk of further contamination to water supplies in Romania, Hungary and Serbia as melting snow and spring rains wash the toxic sludge around the Baia Mare Aurul gold mine, whose dam burst spilling 95 tonnes of cyanide into the environment last month, into the region’s water supply.

The Greenpeace team that has been in Romania investigating the Australian owned gold mine and impacts to the surrounding environment of the recent disaster, discovered that the mine has been a source of persistent and acute hazards to human health and the environment since it started up in April, 1999.

"As delegates from around the world gather in The Hague, The Netherlands, to discuss water issues this week (1), people along the Tisza and Danube river systems have been left by this Australian mining company to suffer the legacy of it’s negligence," said Greenpeace spokesperson, Andreas Bernstorff.

Large quantities of toxic sludge now cover the fields around the dam’s basin and some is contained in snow that surrounds the villages. As the snow melts, the risk of further contamination to rivers is acute. The mine’s owner, Esmeralda Explorations Ltd, has ignored demands to clear the fields of toxic sludge.

"Operations at the Aurul mine should be stopped until the company finds a safe alternative to cyanide in its gold mining operations. In the meantime, it must accept responsibility for this disaster and clear the contaminated sludge," said Bernstorff.

The Australian mining company, Esmeralda, decided recently to resume gold production in Aurul. The dam around the basin is structurally flawed as it is made of materials that are too fragile for the region’s climatic conditions. Esmeralda flatly denies responsibility, claiming that there is no connection between the accident caused by its own negligence and the poisoning of the Lapus and Somes rivers in Romania and the Tisza in Hungary. Cyanides and heavy metals destroyed almost all life in those rivers.

"Aurul is not even in control of its routine operations, said Bernstorff. "This accident could happen again at any time. It is clearly unacceptable that this company disregards all the rules that it would have to comply with at home. All mining operators in the region must comply with the most rigorous environmental standards," he added.

Greenpeace interviewed local farmers who disclosed that fish died after they performed a traditional test that involves placing fish in their wells to see if the water is poisoned. They also handed over water samples that were severely contaminated with cyanide from pipe leaks and reported sick children, ill domestic animals, dead cows, frogs and wild birds. They reported that noxious odours contaminate the air.

Greenpeace research also reveals that the gold industry has already poisoned rivers in Romania over the last three years. In February 1998, 43 hectares of soil and 200 kilometres of river were contaminated by toxic sulphur oxide released from precious metal works in Zlatna. In May and December 1999, thousands of cubic metres of cyanide sludge spilt from two gold mines near Brad and Baia de Aries in the western Carpathians, causing major fish kills.

Greenpeace further warns of the dire consequences of a 'new gold rush' in the Romanian and Ukrainian Carpathians. Australian, Canadian and British firms are currently taking over old, state-owned companies in the region, where they extract by cyanide leaching the last residues of gold from the soil or from the remnants of their new partners previous mining operations.

FOR FURTHER INFORMATION PLEASE CONTACT:

- Andreas Bernstorff, Tel: +49 171 8780 838 or Matilda Bradshaw Tel: + 31 20 524 9545

Click here to download a copy of the Greenpeace report

(1) The World Water Forum is to be held in The Hague, The Netherlands between March 16th – 22nd.