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CSR and Public Participation in the Mining Industry: The Peruvian Case

This research explores the role of corporate social responsibility (CSR) and public participation in the mining industry in Peru. It examines the diverse interests of stakeholders, the causes of conflicts, and the importance of various types of agreements to promote a balance between economic development and social and environmental preservation. The benefits of engagement are highlighted, along with the need for government, mining companies, and indigenous communities to collaborate in decision-making processes for mining projects.

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CSR and Public Participation in the Mining Industry: The Peruvian Case

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  1. 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

  2. MINING IN PERU – FACTS • 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

  3. DIVERSE INTERESTS • State • Maximise their revenues • Promote social and economic growth • Mining Companies • Economic • Maximise the return of their shareholder’s capital • Indigenous Communities/local communities • Preservation of their heritage (culture and lifestyle) • Protection land and land uses • Preservation biodiversity • Minimal environmental impact • Participation in benefits from mining

  4. Mining Areas with Conflicts

  5. Types & Causes of Conflicts (Peruvian Ombudsman’s Office) • Active: 10 cases • Latent : 14 cases • Solved : 6 cases Causes • Environmental • Relocation • Competing Land uses • Social Issues

  6. Public Participation • Supreme Decree No. 028-2008-EM • 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.

  7. Companies’ Obligations • Provision of information about agreements, stages of the project, technologies used for the development of the mine (Exploration) • Prepare Community Participation Plan (exploitation)

  8. VARIOUS TYPES OF AGREEMENTS THAT COULD BE USED TO PROMOTE A BALANCE • 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

  9. 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

  10. CONCLUSIONS • Participation of Government, Mining Companies and Indigenous Communities during the decision- making to carry out a mining project • Wealth distribution • Provision of training programs • Regularization of lands • Effective public participation

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