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70% of the Local Economy Depends on the Forestry Industry

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Mayor of Lumaco, Richard Leonelli Contreras

The forestry sector is the main source of productive linkages in communes across the regions of Ñuble, Biobío, La Araucanía, Los Ríos, and Los Lagos. The sabotage led by the Arauco Malleco Coordinating Group has resulted in unemployment and migration in Lumaco, a commune proud of its multicultural heritage.

Lumaco. The commune where the first attack claimed by the Arauco Malleco Coordinating Group occurred in 1997. The commune with the highest number of arson attacks against forestry contractor companies during the first half of 2022. With a centuries-old forestry vocation and thriving tourism centered around the gastronomy of Capitán Pastene, its over 9,500 inhabitants witness how the violence of organized, armed groups is gradually destroying the work of families, who have migrated to places with better job opportunities.

Richard Leonelli Contreras is its mayor. A 47-year-old accountant by profession, raised selling vegetables alongside his parents, he later became a forestry brigade member and driver before working as a municipal employee in Lumaco for over 25 years, until being elected to his current position in May 2021. In this role, he has been courageous in speaking his mind about the complex situation in his commune, despite the threats received by other mayors in the La Araucanía region.

"We must be frank—the commune of Lumaco relies mainly on timber. Formal and informal producers, farmers who for years wait for their two, three, or five hectares to produce stacked cubic meters of wood, to sell them and aspire to educate their children, access healthcare, and other normal aspirations of any rural person," he adds, "In Lumaco, 70% of the people depend on forestry companies, on timber."

These are small landowners with productive activities like livestock and, to a lesser extent, agriculture, but their main source is producing stacked cubic meters of wood, as is the case in much of the southern macrozone. "We must consider that economies depend on timber production because there are people who produce the stacked cubic meters, others who load them, others who transport them, women who provide meals—it creates a chain of work that no other sector provides here in Lumaco," explains the mayor.

This commune in the Malleco province consists of three sectors: urban Lumaco, Capitán Pastene, and Pichi Pellahuen, and it is the largest commune in area after Lonquimay in the La Araucanía region. Unfortunately, it has been losing population according to recent census data: in 2002, the census recorded 11,405 inhabitants, but today there are only 9,548 (2017 Census).

Less Work = More Poverty

Leonelli laments the situation affecting economic development in his commune, where small and medium-sized forestry service contractors have ceased operations. They have moved to safer areas or could not withstand the burning of their equipment—their working capital. "It's sad, it's regrettable—poverty and unemployment levels have risen significantly. Over the past two years, around 800 families have lost their livelihoods," explains the mayor, recalling better times. "My mother sold vegetables, just like the Mapuche people, and suddenly, people had the chance to train as loggers, for example, to learn and switch to raising chickens or selling vegetables, to earn $1,200,000 or $1,500,000 monthly, allowing the head of the household to educate their children and access private healthcare, because the state cannot provide it adequately. Today, those families are jobless, so poverty has increased, and the municipality cannot support that workforce."

The mayor recalls that many were from Mapuche communities who relied on small jobs provided by local contractors, gradually forming their own teams and creating work for their communities. "Something beautiful was happening—for example, in Chanco, men formed their SMEs and realized they needed meals for their teams, so women started their own SMEs selling meals to these companies. A chain of work and economic stability was created, and it was wonderful. Today, that is being lost, and it's heartbreaking, but it's the reality Lumaco faces due to attacks on small contractors who bought machinery on credit to carry out their work, only to have it burned," he explains. "In many cases, insurance only covered part of the loss, not 100%, and they reinvested only to have their machines burned again. After that, it's impossible for anyone starting out to recover financially, so they had to close their businesses, leaving people jobless—Mapuche community members, rural and urban workers. Their only intention was to work and create jobs for others, but sadly, we face these radical groups who want to destroy and seize forests, leaving many humble people without livelihoods."

Mayor Leonelli, based on your experience, is the forestry sector important for Lumaco's economic development?

The dominant industry in Lumaco has always been forestry because it generates work for people who then consume services, commerce, gastronomy, and other activities in the commune. The forestry industry contributes to the development of all other economic areas here. Then comes tourism, agriculture, and, to a lesser extent, other sectors. At one point, we also welcomed many tourists, especially for gastronomy, and there were lodging and cabin projects that never materialized due to these groups' actions.

With the pandemic, we learned to reinvent ourselves. In that sense, the municipality has worked with rural and urban residents on projects like pork-derived products. But we are sadly watching as the timber industry moves away, leading to unemployment.

What is the relationship between the municipality and forestry companies?

I don’t have a double discourse here, and I’m not afraid to say it—I am an ally of those who create jobs in my commune, and forestry companies create jobs. Any sector that does will always have my support as mayor. Today, forestry companies provide jobs and support to this municipality. We have collaboration programs with them—they transport children to schools because the state doesn’t cover all those costs, they fund meals for boarding schools, and we’re working on rural drinking water projects and protecting water sources.

Obviously, we must demand that forestry companies respect water sources, Mapuche customs, and culture, and maintain the roads they use. But I believe these companies contribute greatly—what’s most commendable is that many, like Mininco, consult neighbors on work projects, reach agreements, and provide grants for rural people, often direct contributions that go unpublicized. That’s tremendous economic help, something the municipality can’t finance.

I defend companies that create jobs in my commune. Here, if you talk to anyone, they’ll speak positively about forestry. The only ones who oppose them are radical groups trying to seize their assets—it’s that clear. People from communities, hardworking folks, will tell you that if forestry leaves, we’ll all be jobless and forced to migrate. Most people in Lumaco have a good opinion of them.

Mayor, aren’t you afraid? Have you received threats?

Thankfully, I’m not threatened, and I’m not afraid—though I am concerned for my commune and my neighbors' safety. Some people are scared, feeling powerless and angry after losing everything. People who started from nothing, managed to own small machinery, and now have nothing.

I’m not afraid because if you act truthfully and with good intentions, there’s no reason to fear. I value the government’s efforts—it’s no secret that the State of Emergency helps people feel safer when they see military and police presence on the roads, though without restrictions, it would be even more effective.

This is such a complex issue that I urge all lawmakers not to exploit it—we must all collaborate for the well-being and safety of families in our region. The more authority the police have, the better. Honest people have no reason to fear them—only criminals do.

Anything else to add?

I want to tell Lumaco’s businesses that, as mayor and as a community, we will always be ready to facilitate whatever is within our reach to encourage investment here. That way, families can thrive, children can study, and the elderly can access better healthcare—because neither the state nor the municipality can fully meet my commune’s needs. I also thank the companies still operating in Lumaco despite everything—it’s crucial they keep providing jobs.