This document discusses social risks and management measures related to mining development in Peru. It notes that Peru has experienced a mining investment boom and expansion into new areas since the 1990s, which has led to a major increase in social conflicts. The document outlines the causes of social conflicts, including land and environmental issues, and discusses management measures implemented by both the Peruvian state and mining companies. It provides the example of Anglo American's successful Quellaveco copper project, which obtained broad social support through dialogue and addressing local concerns over water usage. Key lessons highlighted include the importance of obtaining and maintaining social license through ongoing engagement, adaptation, and building trust with communities.

1. SOCIAL RISK AND SOCIAL MANAGEMENT MEASURES IN PERUVIAN
MINING DEVELOPMENT
Societas - Social Analysis Consultants
September 2012

2. Current panorama of Peruvian
mining
 Mining investment
boom since 1990s.
 Enormous expansion
to non-traditional
extractive areas.
 The country has
witnessed a major
increase in social
conflicts.
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3. Content
 Social conflict overview.
 Social management measures: from
the State and the mining industry.
 Successful case: Anglo American´s
copper project.
 Lessons to be learned.
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4. How frequent are social conflicts
in mining regions?
Environmental
conflicts in Peru
In February 2012, from 228 registered
conflicts, 129 (57%) were related with
socio-environmental issues.
The regions with the highest number of
conflicts are Puno (21), Ancash
(21), Cajamarca (17) and Cuzco (16), all
of them major mining regions.
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5. Why are there social conflicts
around mining?
 Conflicts are multi-causal:
 Land-use and ownership.
 Environmental damage, especially with water
quality and access.
 Changes in local livelihoods.
 Struggle over benefits (increasing expectations).
 Political power.
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6. Which actors are involved in the
conflicts?
Local populations.
Local and regional governments.
Local and international ONGs.
Political parties and regional
movements.
Mining companies and contractors.
The central government.
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7. Why is important to obtain and
secure social license?
 Social license is a critical factor for
the development of mining
projects.
 Social license has consistently
appeared as of one the six risks
that face the mining industry
worldwide.
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8. Which are the management measures
implement from the State?
Attempt to distribute mining
wealth.
Seeking environmental
independence and legitimacy.
Setting environmental standards
and a new regulatory framework.
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9. Which are the management measures
implement from the State?
Environmental
passives are a
major cause of
local mistrust
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10. Which are the management measures
implement from the State?
Securing local participation and
consultation.
Restructuring of State conflict
management system.
Land and regional planning.
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11. Which are the management measures
implement from the industry?
Creation of community relations
teams.
Implementation of CSR programs.
Establishing ways for sharing
benefits.
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12. Successful case: Anglo American
– Quellaveco
 Quellaveco is one of the most important copper
projects in LA with more than 220 thousand MT of
reserves and an estimated investment of 3
thousand millions of US$.
 Exploration works began in 1992 and the EIA was
approved in 2,000.
 Local populations raised important concerns about
the impacts over water-quality and water-quantity
for agriculture.
 Anglo decided to obtain a broad social license
before the beginning of any engineering works.
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13. The Regional Dialogue Table was
instrumental for reaching agreements
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14. Social license agreements
 The agreement includes:
 New project design to avoid the use of subterranean
and superficial water (use of residual water).
 Securing water for human and agriculture purposes
(construction of a dam and a pump system).
 Local content and capacitation compromise.
 Implementation of a local trust.
 Establishment of three commissions to supervise the
agreements (including the environmental ones).
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15. What lessons could be we learn?
Analysis
Monitoring and
Planning
Adaptation
Building Dialogue and
Credibility Engagement
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16. What lessons could be we learn?
 Move from legal fulfillment to
acquiring and maintaining social
license.
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17. Thanks
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