2. Presentation Overview
Knowledge sharing goals:
1. Rationale for using CSR as a tool redistribution
of mining wealth
2. Evolution of government policies appealing to
CSR to redistribute mining wealth
3. Current case of large project in conflict
5. Economic Importance of Mining in Peru
Mining sector is key to country's macroeconomic
management
Average 6-7% of GDP in recent years
50% of foreign currency is generated by mineral
exports
In 2005, mining accounted for 55% of all exports
Between 2001 and 2003 accounted for 37% of FDI
8. Core of Mining – Sustainability
Relationship
State must create mechanisms and ensure that the
transformation of a depletable asset (mineral ore)
results in a sustainable one (social and human
capital)
9. CSR and the Mining – Sustainability
Relationship
When this transformation is not evident
Then
There are concerns about livelihood
security, environmental degradation, and the
perception that well-being has not increased in
proportion to the profits of mining companies
(CSR topic)
10. Perceptions of Mining in Rural Areas
In rural Latin America the large % of population is
below the poverty line
Main manifestations:
no formal access to property (customary)
low level of education
access to information only by cultural appropriate
means
Respond to charismatic style of political
leadership
11. Perceptions of mining in rural areas
Mineral resources rarely represent a benefit to
rural communities ; instead mines represent a risk
to community land and water (historical
emotional legacies)
Preconceived concept (perception) of mining =
negative
Plus – remnants of leftist ideology
Plus – environmentalists advocates
12. Record of Environmental Legacy
La Oroya smelter and its
surrounding area, recently
identified as one of the
world’s ten most
contaminated places in the
world.
The Blacksmith Institute, 2007
13. Research Conclusion about Mining
Social Legacy in Peru
“Indeed, it is hard - arguably impossible - for the mining
sector to point to any locality in Peru where the
expansion of mining has led to significant human
development for the local population…”
“While this does not necessarily imply that future mining
will have the same effects, it makes the ‘marketing' of
new projects problematic.”
Anthony Bebbington, British anthropologist
14. From Research to Activism
“It also gives activists who are sceptical of mining a wide
range of examples to chose from when they want to
suggest to others that mining may not be a panacea for
local development”
Anthony Bebbington, British anthropologist
21. Government Efforts to Regulate CSR in
the Mining Sector
In 2003 Ministry of Energy and Mines decreed all new
projects should contribute to environmental care and
social development in influence areas (D. S. 042-2003-EM)
Established contributions criteria and reporting
system via internet
Established new Department in Ministry to oversee
these activities
22. Government Efforts to Regulate CSR in
the Mining Sector
In 2007 Ministry of Energy and Mines created a
Solidarity Mining Fund
35 companies voluntarily joined the fund
Contributions to promote development programs in
the areas of influence of companies participants
Companies decide about projects; Ministry supervise
execution and reporting
33. Reasons for opposition
Four lakes need to be drained
Four artificial reservoirs will replace it with double
capacity than original ones
34. Perspective from each side
Communities:
Don’t want to risk existing natural sources of
water; don’t trust company for water quality
Company:
More water will be available and technology used
follows rigorous standards
Central Government
urged Yanacocha to find a way to keep the lakes
intact; will revise Conga's EIA already approved
36. Poverty Level in Communities Opposed
According to National Institute of Statistics
(in 2008)
Comm 1: 88,3% poor with 50% extreme poverty
Comm 2: 79,1% poor with 46,3% in extreme poverty.
Comm 3: 78,5% poor with 44,3% in extreme poverty
37. Research Conclusion Becomes a Reality
for this Project
“Indeed, it is hard - arguably impossible - for the mining
sector to point to any locality in Peru where the
expansion of mining has led to significant human
development for the local population…”
“While this does not necessarily imply that future mining
will have the same effects, it makes the ‘marketing' of
new projects problematic.”
Anthony Bebbington, British anthropologist
39. Statements Regional President
"We want no more mining in Cajamarca“
“…Cajamarca has been overexploited by mining and we
are already tired of being the dumping ground for
transnationals…”
“[mining] wealth comes out clean and garbage
remains. Gold comes out clean and poverty stays…”
41. Commitment to Contracts
“We are going to respect everything signed by the
state, whether we like it or not. If there are some
misunderstandings then we are going to work them out,"
President Humala in a televised interview, in response to a question about an
ongoing dispute involving the Minas Conga
42. Appealing to CSR for a Social
Arrangement
Peru’s Prime Minister statement:
"We are working on a very important social fund
so that the communities that are impacted by this
project are compensated," … "The authorities
involved in this project have agreed to develop the
fund."
44. Possible Future Scenarios
Implementation of Public Consultation law
Complete overhaul of mining concessions system
transferring decision process to regional governments
EIA approval process from Mining Ministry to
Environmental Ministry
More technical rigorous process to prepare
development plans in mining areas
“Sociology Before Geology”
