CSR and Public Participation in the Mining Industry: The Peruvian Case Janeth Warden-Fernandez

CSR and Public Participation in
the Mining Industry: The
Peruvian Case
Janeth Warden-Fernandez
Research and Teaching Fellow
CEPMLP/Dundee
CSR and the Mineral Resources Industry
St Andrews – Dundee Workshop
SASI
26 September 2008
MINING IN PERU – FACTS
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A leading mining country in Latin America
1st gold, zinc, silver and lead producer. 2nd
Copper.
1st silver producer in the world
Minerals comprise 62% of total exports
Poor evidence of contribution to economic
and social development
Increased number of conflicts between local
communities and mining companies and
between communities
DIVERSE INTERESTS
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State
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Mining Companies
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Maximise their revenues
Promote social and economic growth
Economic
Maximise the return of their shareholder’s capital
Indigenous Communities/local communities
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Preservation of their heritage (culture and lifestyle)
Protection land and land uses
Preservation biodiversity
Minimal environmental impact
Participation in benefits from mining
Mining Areas with Conflicts
Types & Causes of Conflicts
(Peruvian Ombudsman’s Office)
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Active: 10 cases
Latent : 14 cases
Solved : 6 cases
Causes
 Environmental
 Relocation
 Competing Land uses
 Social Issues
Public Participation
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Supreme Decree No. 028-2008-EM
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Provision of complete information about the
project
Adoption of views and concerns of the
community
Promotion of dialogue
Avoidance of conflicts
Building of consensus
Right of communities to monitor the
compliance of agreements.
Companies’ Obligations
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Provision of information about
agreements, stages of the project,
technologies used for the
development of the mine (Exploration)
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Prepare Community Participation Plan
(exploitation)
VARIOUS TYPES OF AGREEMENTS
THAT COULD BE USED TO PROMOTE
A BALANCE
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Revenue Sharing Agreements
Impact and Benefit Agreements
Agreements for Promoting SSB
Agreements for Promoting Employment and
Skills development
Agreements promoting community health
initiatives
Agreements regarding mining closure
Trust
Foundation
BENEFITS OF ENGAGEMENT
Creates sense of mutual ownership
 Builds trust
 Reduces violence and project risk in
resource zones
 Contributes to improvement in quality
of life and standard of living in mining
communities
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CONCLUSIONS
Participation of Government, Mining
Companies and Indigenous
Communities during the decisionmaking to carry out a mining project
 Wealth distribution
 Provision of training programs
 Regularization of lands
 Effective public participation
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