Human Rights Assessment of Goldcorp's Marlin Mine Land Acquisition Process

1. Human Rights Assessment of Goldcorp’s Marlin Mine Section 5 Land Acquisition Group 1

2. Background Information Stakeholders • Population of San Miguel - approximately 40,000 in 62 communities • Population of Sipacapa’s - approximately 14,000 people in 54 communities Stakeholder concerns • Price for land was not fair; • Unequal compensation for land sellers; • Coercion of some landowners to sell lands; • Unfulfilled job offers, development projects; • Diminished access to common property resources- towood.

3. HRIA Focus Areas • Was the land acquisition process fair, transparent and equitable? • Have land sellers maintained or improved their standard of living from the land sales? • Are collective rights being respected in the land acquisition process?

4. Was the land acquisition process fair, transparent and equitable?

5. Respecting right to property during acquisition • Avoid forced resettlement; • No coercive measures during land acquisition; • Just compensation to all land sellers; • Informed consent of women and wives to the land sales; • Disclosure of information, consultation and informed participation of the stakeholders

6. Forced Relocation • No forced relocation; • Land sales and resettlement on a voluntary basis; Relocated families: • 74 % built or moved to other houses in the same communities; • Others exchanged their houses for new houses built by Montana; • Montana paid compensation for affected assets.

7. Compensation for Land and improvements • Standard price of Q4,000/cuerda for land acquiredaround the mine • consistent, transparent, above-market price for the land (adequacyof the price is now in question though, because of inflation in land values) • compensation above the replacement value of the land • consistent price - safeguard for equity in the treatment of all land sellers Shortcomings – equity of compensation between land sellers • Additional payments to a number of sellers for land imporvement – hinders equity, integrity and non-discrimination of the land acquisition process with regard to other sellers / vulnerable populations

8. Additional Commitments • Development benefits from the Marlin Mine, either through employment or social investment projects. • Montana - job offers did not constitute a commitment to hire those who sold land or their family members. No written agreement • Local population perceived job offers as commitments, and offers were made and linked to the sale of the lands Local population was not employed by Montana - infringement on the right to own property

9. Coercion on Land Sellers The existence of pressure, intimidation tactics or coercion - constitutes an infringement on the right to own property. • NGO and interviewed stakeholders – ‘people were selling their lands under pressure and out of fear’. • No oversight mechanisms that could assure the absence of coercion. • Fairness and integrity of the land acquisition process is in question.

10. Consent of Right Holders • Whether the company obtains consent of women and wives before completing land sales? • Female inheritance is protected by Guatemalan law • Montana has no policies or procedures that would ensure the consent of women and wives is obtained prior to completing land sales or re-settlement

11. Have land sellers maintained or improved their standard of living from the land sales?

12. Improved Standard of Living? • Land sales = opportunity for enhancement of the social and economical rights of sellers, but it can result in infringement of rights as well • Positive outcomes • Negative outcomes

13. Improved Standard of Living? • In order to recognize and address potential outcomes, due diligence is necessary • Montana did not monitor short- or long-term impacts of land acquisition and is therefore unable to address the issues

14. Are collective rights being respected in the land acquisition process?

15. Collective Rights • Indigenous peoples: individual ownership + common property resources and collective rights over the lands (protected in Constitution, Peace Accords, ILO C169) • Concept of free, prior and informed consent • Spiritual aspect of land: religious or cultural significance

16. Collective Rights • The ownership of indigenous lands not always clear – the concept of elders holding the title of ownership on behalf of the community • Access to common property resources (water, wood) … lack of prior evaluation • Process of converting the usufruct rights into full ownership rights  underlying collective rights of indigenous people

17. Recommendations Immediate Action • Adopt a moratorium on land acquisition. • Adopt a moratorium on using the titulacionsupletorio process. • Identify and support at -risk families. LegacyIssues • Convene an independent review of historical landacquisition. • Implement a revised land seller follow-up program. • Develop a program to ensure access to wood.

18. Recommendations Ongoing Due Diligence • Implement a land acquisition policy with reference to international best practice. • Adjust land prices. • Ensure fairness in valuations of improvements • Provide access to independent advisors. • Clarify process for land transfer at closure.

19. Questions? =)