2004-2007 Investigation into water contamination leads to fine against company, overturned by court on appeal

In 2004, a study was ordered by the then Directorate for the Promotion of Mining (DEFOMIN) into contamination of water supplies near San Martín mine. This found that there was evidence of arsenic poisoning in the water supply to the community of Nueva Palo Ralo, a hamlet that had been forcibly relocated by the San Martín mine. The poisoning was traced to a well used for drinking water, which had been constructed by Entre Mares when the community was relocated by the company in 2000. The levels of arsenic recorded were significantly higher than safe levels established by the WHO. As a result, it seems that Goldcorp closed the well without notifying the community. 

In 2005, an environmental complaint was filed against Entre Mares in relation to shortage of water, displacement of population, and contamination of aquifers with arsenic and heavy metals (IDAMHO and Oxfam 2013).

In 2006, water analysis conducted by Lic. Flaviano Bianchini in the nearby community of El Pedernal found evidence of the presence of high levels of arsenic, lead and hexavalent chromium. High levels of arsenic were also discovered in blood samples from 10 people from El Pedernal and Nueva Palo Ralo. In September 2006, in response to studies, the Ministry of Natural Resources and Environment (SERNA) officially confirmed that the Siria Valley was contaminated (Almendares 2011). 

In 2007, SERNA fined Entre Mares (a wholly owned subsidiary of Goldcorp Inc.) approximately one million lempiras (equivalent to approximately $55,000 US) for pollution and environmental impact, including quality of water used by affected communities. 

The company appealed the fine, arguing that SERNA failed to provide reliable scientific or technical proof of water contamination or negative impact on residents living in the area close to the mine (La Prensa, 2007). A Honduran court confirmed this position and overturned the fine on the basis that the water sample was unreliable. This decision was upheld on appeal (Archbishop of Baltimore, 2010).