FIELD CASE STUDY 3:
HAQUIRA-LAS BAMBAS, PERU
By: Bernarda Elizalde and Maria Jose Gonzalez Field study completed December 8 - 18, 2015 Field Case Study 3: Haquira-Las Bambas, Peru
SUMMARY
Haquira is a late stage exploration project owned and operated by First Quantum Minerals at a site where a very large body of copper mineralization has been identified. Haquira lies less than 10 km south of the Las Bambas mine owned and operated by MMG Mining Ltd. Las Bambas is an open-pit copper mine and associated facilities located 75km south-west of the city of Cuzco in the Andean highlands of Peru. Once full production is achieved, Las Bambas will be one of the largest copper mines in the world.
Haquira was discovered and explored through to feasibility by Antares Minerals, which was purchased by First Quantum in 2010. It is presently on hold pending better market conditions. Exploration and development of Haquira has taken place as the nearby Las Bambas mine was being brought into production. Inevitably, events at Las Bambas have had a profound impact on Haquira. More particularly, agreements between Las Bambas and seven adjacent communities for resettlement and benefit sharing established expectations for the four communities in the area of interest defined by the company. Further, as a reflection of the uncertainties associated with exploration, Antares negotiated sequential short term agreements for land access with the four communities, which repeatedly involved episodes of conflict as the communities tried to gain a better deal and the company control expectations and costs.
The presence of copper mineralization at Las Bambas has been known since the 1960s. In 2004, Xstrata won the right to develop the property from the Peruvian government in an international public process. By 2008 the dimensions of the ore body had been defined and a full feasibility completed the following year. In 2010 a comprehensive resettlement agreement was signed with affected communities and mine construction started. By 2012 construction was 60% complete. In 2014, the project was sold to MMG Mining Ltd as construction reached 80% completion. Construction was complete as of 2015, production initiated. First concentrate shipments were made early in 2016.
In September, 2015, confrontational conflict erupted at Las Bambas between the company and local communities. The police were mobilized to contain the conflict, which escalated rapidly leading to a number of deaths and injuries. The national government set up a negotiating table to try and resolve the conflict, but local leaders complained that key stakeholders were left out of the negotiations. As part of an attempt to contain conflict at several locations in Peru, including Las Bambas, government introduced legislation that made public opposition to mining in the form of demonstrations, marches and blockades illegal with stiff penalties for people who disobey.
The September 2015 conflict at Las Bambas came about, in part, because in the opinion oflocal community leaders, MMG had arbitrarily and without notice changed the provision of written agreements. The situation is, however, more complex with a number of other issues that contributed to the 2015 conflict, related tensions at Haquira and an ongoing high level of latent conflict throughout the district. These include:
• Low levels of trust, both interpersonal trust and trust in institutions;
• Dissatisfaction with the outcomes of the resettlement;
• Attempts by local politicians to change district boundaries to capture more revenues from mining;
• Pre-existing disputes between communities over land boundaries, and hence access to benefits from mining;
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• Growing inequality in the region due to the way wealth and benefits from mining are distributed;
• A desire for each community to negotiate its own agreement with the mining companies and hence continuing competition to have the ‘best deal’;
• An absence of coordination or collaboration between the mining companies; and,
• A cultural willingness to use conflict as a tool in negotiations.
The situation at Las Bambas has had significant collateral effects on the communities surrounding the Haquira project. On the one hand the communities in proximity to Haquira are looking at the benefits negotiated by the communities from the Las Bambas project, as a precedent that they would like to emulate or even improve upon. On the other hand they fear that once the Haquira project reaches the construction phase, the same process of conflict and violence might impact their communities as well.
CONTEXT
Country Context
The economic history of Peru has its traditional roots in natural resources from Incaic times to the present. Therefore it is not surprising that Peru has been ranked among the first mining countries in the world. Sixty percent of Peruvian export earnings come from minerals. Despite the decline of mining since 2012, mining activities contributed to the 2.4% increase in GDP in 2015. Peru’s competitive advantage relies on the diversity of minerals it produces. It is Latin America’s largest producer of various metals and has generated a constant flow of metal production for several decades. According to the Government of Peru, the country’s mining policy’s principal objective is to develop mineral resources rationally, respecting the environment, and creating conditions for the mining companies and society in which they live and work to come together in harmony1. Despite these efforts, Peru faces a number of mining-related conflicts that illustrate the need for improvement in some governance aspects related to mining, social, environmental and economic development.
Each stakeholder group in Peru explains conflict in its own way. From the point of view of civil society, conflict cases in Peru are divided into two main categories: coexistence and resistance. Most conflicts in Peru are of coexistence, where each party negotiates its interests. Examples of resistance conflicts include the Tambogrande, Conga, Santa Ana and Tia Maria projects, where there is strong opposition to a company or mining activity per se (R. Morel referring to J. De Echave’s theory, personal communication, December 20152). Other civil society representatives indicated that the mining sector in Peru is generally linked to three Cs: Contamination, Corruption, and Conflict. In contrast to this opinion, the relatively new Office of Sustainability and Dialogue - ODS3 (2012) , describes conflict as part of a social dynamic where interests, differences and controversies can lead to open confrontation or violence. The Office for Dialogue and Sustainability’s new approach sees conflict as a potential transformational opportunity for change. According to a representative from the Peruvian Ombudsmen (Defensoría del Pueblo) conflict in Peru is an opportunity to uncover pending historical quarrels that reveal emotional liabilities, environmental liabilities, and memories of wrong doings (R. Luque, personal communication, December 2015). From the point of view of some industry representatives, conflict in Peru relates to various stakeholders’ interests, and their opportunity to obtain benefits.
The historic socio-political and socio-economic traits in Peru, characterized by the presence of
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colonial landowners4 who controlled social and political dynamics, have an undisputable influence on the Andean communities’ attitudes and behavior best seen in feelings towards self-identity and the protection of rights.
Moreover, changes in the Peruvian economic system under the Fujimori government in 1990-91 included a return to welcoming conditions for foreign investment. These changes re-shaped the government’s regulatory goals by rejecting the control-oriented policies of previous governments. By ceasing to function as a traditional planning body for economic growth the central goal of the state was to attract international capital and investment. Civil society at this time was against a free market economy. The internalization of globalization with Fujimori’s implementation of neoliberal policies affected both the economy and the state at a time of intense conflict regarding the country’s political and economic direction (Ruiz, G., 2005)5.
Poorly referenced and studied, psychological dynamics (perceptions, emotions) and post-conflict deteriorating relationships (i.e. the relationship between local communities and police) are not often considered when addressing underlying problems like resentment, frustration, and anger that most often grow worse with time and the combination of factors as described below. Andean community members are therefore characterized as conflictive per-se, or conflictive to reach negotiations. However, when local community leaders of past and present conflicts were asked about their confrontation tactics, the answer most often was: “First, we deplete all resources to seek comprehensive approaches to resolve our differences or concerns. If dialogue doesn’t take place, we proceed to join into protest”. A community leader provided a useful example: “…on that occasion we were ready to bring thousands of locals to protest and take over to the mine. But the night before someone relevant to the case showed up at my house and we talked. I am glad we did. We understood each other and we reached an agreement – that no-one would get hurt… and we [the leaders] kept our promise. ”
Peruvian Governance and its Influence Over Conflict
Contextual Factors
The Peruvian mechanisms and levels of participation6 in the regional and local administrations are part of the Peruvian government’s political decentralization plan. The democratization of public decisions in Peru took place in 1990 after rejoining the international financial system and establishing cooperative relationships with the World Bank and the Inter-American Development Bank (Ruiz, G., 2005). This is when Peru implemented international practices that demanded public participation as an important part of governance. The law of Public Participation democratically enacted in 1994 (Law No. 26300) represented an important change. The democratic transition began in late 2000. This relatively new democratic system, following past authoritarian governance and corruption, has encountered a series of gaps in the implementation of such law and norms. On the other hand, while the government transferred administrative and political authority to regional and local authorities, it did not, in most instances, transfer the necessary technical capacities, leading to a permanent centralized governance system.
Institutional Factors
Following Fujimori’s economic model, the government of Alan García (2006-2011), made further changes to promote foreign investments. These changes were perceived by civil society as less rigorous and advantageous tax-wise to companies. Currently, stakeholders’ opinion in this research study regarding actual norms indicate that:
• Norms are not responding to reality as they do not respond to cultural needs;
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• The participation mechanisms established in 2008 are not functional;
• Royalties channelled by the Canon Minero and intended mainly for infrastructure projects are not responding to the short, medium or long term strategic economic development plan;
• The norms eliminate communities’ assurance of land ownership and land use;
• Supreme decree 001/2015 introduced a new practice that contradicts the Land Law and Article 89 of the National Constitution regarding native communities, their cultural identity and land use rights.
Organizational Structure
The function of the Ministry of Energy and Mines’ (MINEM) Conflict Management Office is to harmonize the interests of companies and communities. Its role is to facilitate or mediate a mutual understanding between parties. Non-governmental organizations (NGOs) and churches are not part of MINEM’s intervention strategies. The Office’s conflict monitoring mechanism involves residents from the conflict area who gather information and provide a warning of potential conflict situations. The residents do not have institutional representation. Since 2011, MINEM has been conducting seminars and forums with the public’s participation prior to granting a mining license.
Despite all the resources, mechanisms and institutions created by the Government of Peru, the stakeholders from different sectors perceive that the system for conflict management, and protocol monitoring creates difficulties or prevents the government from working on conflict prevention, particularly due to the lack of direction for government institutions and the mining companies. The government’s conflict management system is still seen by most stakeholders as post-conflict.
The Environmental Impact Assessment (EIA) system has been a topic of continuous debate and in many cases an apparent cause of conflict. Up to 2007, EIAs were conducted by MINEM. In order to avoid a conflict of interest between the State as a mining investment promoter and MINEM, the National Service of Environmental Certification for Sustainable Investments - SENACE7 was created. Today, all proposed EIAs are analyzed, approved and monitored by SENACE. According to interviewees the consultation process for an EIA approval has become a springboard for other demands. According to civil society, the actual Ministry of Environment (MINAM) needs to re-define the categories used for conflict classification.
Other national organizations addressing socio-environmental conflicts are the Presidency of the Ministers Council (Presidencia del Consejo de Ministros – PCM) and the Office for Dialogue and Sustainability (ODS).
In summary, the contribution of the national government’s system to address conflict is reflected in a variety of factors, which were named by interviewees for this study:
• Mining activities usually take place in remote areas where the government has poor or no presence, consequently mining and exploration companies are perceived as an opportunity for economic development. Communities’ expectations in this regard tend to be high.
• Nowadays the Government of Peru’s way to solve conflict is to offer investment packages through negotiation tables. Furthermore, extra attention is paid by the government and companies to stakeholders who claim access to benefits.
• The legal system is perceived to promote impunity.
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• The effectiveness of the Peruvian government is limited. The functions and responsibilities transferred to regional offices have administrative and technical management deficiencies due to a lack of competency.
• Synergy and cooperation is lacking between government institutions related to conflict management, particularly the Ministry of Energy and Mines’ Office of Social Management, and the National Office of Dialogue and Sustainability. Inter-ministerial coordination lacks the leadership to align policies and implement initiatives.
• The organisms or institutions for internal control are not sufficiently autonomous. There is plenty of room for corruption particularly at the regional level.
Trust and Representation
The lack of trust takes place at different levels in Peru:
• At the national level, it is difficult to generate trust in the people who have a historic mistrust of government. For others, the government is seen as a close supporter of mining companies and a detriment to the social, environmental and economic interests and well- being of the local population. An issue most often related to trust, is the absence of all key stakeholders at dialogue tables organized by the central government.
• At the regional level, cases of corruption and the mismanagement of royalties have furthered the lack of trust in the government’s capacity to ensure accountability.
• At the local level, unfulfilled commitments by companies, and the scaling down of consultation, communication and information processes generate confusion, suspicion, frustration and the perception of a lack of transparency. According to some community members, the government’s trust rests on mayors, but mayors are not always trusted because they do not represent the interests of all community members, even though it is the mayors who represent the community at dialogue tables.
Regional Level Context
Things have changed in the Apurimac region, province of Cotabambas since 2004 when Xtrata was awarded the right to explore and the option to develop the Las Bambas copper deposit. Originally, the local economy was based on subsistence agricultural activity, but was turned into a region with advanced technology and large workforce demands. Many residents who left the region in the past have returned to the area (since 2010), resulting in a large increase in the local population, adding pressure on basic needs and a need for changes in the structure.
In May of 2015, the Peruvian press8 reported that Apurimac had become the new principal mining destination in Peru. Despite the economic boom as a result of mining investments and activities in the area, this province is still made up of local communities with a number of basic needs. Public information, and news releases indicate that the area lacks the capacity to manage the economic resources and that there is a high level of corruption in the region. Many residents have been put in police custody or under house arrest (Ancash, Cajamarca, Arequipa, Cusco, Moquegua) due to economic malfeasance.
The governor of Apurimac indicated that the creation of an office for conflict prevention is underway
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with the support of the United Nations Development Program (UNDP) to address land rights issues. One of the main issues in the region is related to territoriality and land rights. Most communities would like to be part of a company’s area of direct impact. One of the conflict prevention measures by the regional office is to create jobs by developing a reforestation program covering two million hectares. This will form the basis for future agroforestry activities.
In 2004, the Peruvian ombudsman created a conflict monitoring system, however the lack of conflict indicators hindered prevention measures from being addressed. The regional ombudsman’s office lacks the human resources and budget to visit project sites more often. To make up for this, key local stakeholders monitor the social and conflict environment and report their findings by telephone.
Project Context
The Haquira Project is First Quantum Minerals’ copper deposit acquired from Antares Minerals in 2010. It straddles the Cotabambas and Grau provincial boundary. The Haquira Project has reached the pre-feasibility stage, but construction has not yet begun. According to First Quantum the deposit has measured and indicated resources of 3.7 million tonnes and inferred resources of 2.4 million tonnes of contained copper equivalent9. In late 2015 First Quantum announced to the community its plan to suspend local operations for a year-and-a-half beginning in late 2015. The company will keep their community relations and environmental team on-site until mining activities resume.
First Quantum’s Haquira Project is adjacent to MMG’s Las Bambas Project, a large, long-life copper development project at an advanced stage of construction. The project was owned by Glencore and Xtrata until 2014 when it was sold to MMG Ltd., Guoxin International Investment Corporation, a Melbourne-based and Hong Kong listed company.
Conflict Anatomy
Current Manifestation of Conflict
The following case study illustrates the dynamics of a company where a neighboring mining company’s challenges and successes during its construction phase sets the standard for the social and economic environment of the Haquira Project. Given Haquira’s proximity to the Las Bambas Project, community members’ expectations are that the Haquira Project will invest the same or more than its neighboring mining project. The point of reference for community members on social, economic and environmental matters is usually Las Bambas as both projects share the same stakeholders and communities in their areas of direct and indirect impact. An interviewee mentioned: “…the repercussion of Las Bambas over the Haquira Project is fear – to have rights breached. Some people fear that the same situation will be repeated with the Haquira Project”.
According to local community members and local authorities, the Haquira Project has not experienced an escalated conflict situation because the project has not reached the construction and operation phases when expectations and demands are usually at their highest. However, many factors contribute to a constant level of latent conflict as will be described in this case study.
History and Dynamics of Conflict
Poverty and Imbalanced Wealth Distribution
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Las Bambas’ most recent conflict situation occurred on September 29th, 2015, when approximately 800 members from various communities gathered to join a protest that escalated into violence and resulted in four deaths. A diverse range of stakeholders provide a variety of reasons on what triggered the conflict. According to some community members the trigger was the lack of consultation on the construction of a new molybdenum plant and the fear of contamination. According to other community members the reason behind the protest was to pressure the company for more local jobs and service contracts. In this regard a community member commented: “After the September 29th protest, the communities realized that the protest was motivated by the personal interests of its leaders and other groups like transport workers, and teachers”. Las Bambas has approximately 6,000 workers at present, of which approximately 1,500 are local. In regards to this situation a community member said “Mostly workers from other areas get a job while locals don’t have many opportunities. All we got was a greenhouse where eight of us will have a temporary job”. As reported by some interviewees, after the protest, the government organized workshops to discuss the company’s EIA, although it lacked attendees, as community members were not interested.
Compared with other areas of Peru where conflict is more violent this was the first case of violence in the region, a region not known for violent protest. Local community members reported that key protest organizers left the scene once the conflict escalated to violence. According to community members, the conflict escalated because the opposition leaders had no strategy, and it became a rebellious act that got out of hand. Usually protest leaders report back to the communities at an assembly to analyze the results and plan the next steps, however, no assembly has been organized as yet. It is uncertain if community members will demand an explanation or a report on the events that took place on that September day.
The use of armed force to deal with the Las Bambas conflict on September 29th, was viewed by civil society as the government’s way to criminalize society’s protests. However, community members in this case indicated that some protest participants escalated the conflict to deliberately force a violent confrontation.
The question is: how do the interests of a few mobilize such a large number of community members? The explanation, according to some interviewees lay in the fact that from the 33 communities represented in Cotabamba’s Farmers’ Federation (Federación de Campesinos), only four communities belong to the Haquira Project area of direct impact. Local community members indicate that there is an imbalance of wealth distribution in the area. The distribution of benefits from the mining industry are not reaching all the communities in the provinces of Cotabambas and Grau as they should be. As mentioned by a community member “Just a handful of communities receive benefits, but the rest [of the communities] don’t. How can someone hungry see others eat so much? It is unfair. We all want to receive benefits”. These concerns are illustrated in the district of Challhuahuacho.
According to a 2015 report10 commissioned and carried out by the National Institute of Statistics and Informatics (INEI), Challhuahuacho, on a national scale, is ranked fourth out of 32 districts on its level of poverty. An NGO representative stated, “The differences in wealth between communities that receive benefits from the company and those that don’t create envy and internal conflicts”.
A good example of social asymmetries between local communities in the area is Fuerabamba Alta, an Andean community relocated by Las Bambas. Fuerabamba Alta, a traditional small community was turned into a sophisticated gated community with three-storey brick houses including 10 – 15 rooms per family, with all the services and infrastructure that are found in any developed country middle- class neighborhood. The community grew from a few to 441 families. Fuerabamba Alta’s community members receive monthly payments and their economic status created resentment in many surrounding traditional communities. A civil society representative remarked: “…Locally, neoliberal ideas have prevailed since colonial times. In the past, communities were more united and ensured that all 33 communities receive benefits, not only a handful of communities. Most communities receive just leftovers – ‘Those who speak about equality are called anti-miners and terrorists’”. However, other
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community members see Fuerabamba Alta differently. For example, when a community member from Huanacopampa, a community that will be relocated by the Haquira Project was asked if they would request the same as Fuerabamba Alta for their relocation, the answer was surprising: “Fuerabamba is sad because they are incarcerated on their own land [gated community], but we are happy cultivating our potatoes and grazing our animals. The money dries up, its sad…the people from Fuerabamba cry… We are used to living in the countryside”.
The Canon Minero is a Peruvian mining revenue-sharing mechanism, created in 1992 to allocate 20 percent of the income tax generated by mining companies to the territory where the taxes are generated. The main objective of the mechanism is to contribute to public investment projects. Changes in regulations in 2004 revamped the distribution of revenue transfers at the local and provincial level where natural resources are extracted. As of 2015, the distribution criteria of the Canon Minero are as follows:
Table 1: Mining Royalities - Canon Minero, Distribution
Percentage Beneficiaries Criteria 10% Municipal government or municipal If deposit is in more than one district where the resources are extracted municipality, divide in equal parts If deposit is in more than one municipality, divide in equal parts 25% Provincial municipality where the According to population and resources are extracted unsatisfied basic needs (poverty level) 40% Departmental municipality where the According to population and resources are extracted unsatisfied basic needs (poverty level) 25% Regional government: 80%; regional government plus 20% if a university is located in regional jurisdiction
According to a member of the Resistance Committee (Comité de Lucha), a local civil society group whose members include representatives from Tambulla, Tambobamba, and the Haquira, Farmers’ Federation, the Canon Minero is not fairly distributed nor has it included the participation of community members. A committee member acknowledged the importance of the local government’s capacity to manage economic resources and include community members in meeting local peoples’ basic needs and other economic development initiatives: “…It would help if the mayor would work efficiently with community members to plan and manage the use of those [Canon Minero] resources”.
According to the Peruvian ombudsman office’s (Defensoría del Pueblo), authorities do not know how to use and manage the resources from the Canon Minero. As reported, a development plan is lacking that aligns national, regional and local priorities. There is also a lack of public participation in all planning discussions.
In the Political Arena – Proposals for the Creation of More Districts
Peru’s territory is divided into 26 units: 25 regions and the Lima Province. These regions are subdivided into provinces (196), and districts (1,867). In the Andean area, many districts have less than 3,500 inhabitants. Many basic government services do not reach all the residents of these districts mainly due to their geographic location. At the moment, the initiative of creating new districts for the Apurimac region has stirred up a large debate among sectors and community members. As mentioned by local community members, if the initiative of new districts goes ahead, opposition groups would like to present a candidate for congress to represent the zone and govern the new districts. Nevertheless,
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for a new district to be legally established, the law requires a minimum number of residents to live in the area: 3,500 if it is located in the rainforest, 4,000 in the Andes highlands, and 10,000 in the coastal area.
Table 2: Statements For and Against the Creation Of New Districts In The Province Of Cotabambas
For Against Will receive direct benefits from the Canon Minero. It won’t allow the development of high impact projects (infrastructure projects that benefit a larger segment of the population), instead the revenues from the Canon Minero will be distributed in smaller amounts to the same number of inhabitants divided into more politically divided locations. It will empower communities. Each district will have different objectives. It will be a way to unite communities. It responds to political interests to garner more votes. It will allow new districts to manage their Canon It is a tactic created to divide communities, get them Minero with more autonomy. disorganized and weaken their ability of organize. The creation of new districts will create additional problems with water distribution. It won’t be successful because there are land ownership issues between some communities that need solving. It will create more conflicts between communities. It will generate more administrative expenses.
Locally (and in many other locations in Peru), there are two economic systems with their own identity and context that magnify the differences between parties: a) the agricultural subsistence economy, and b) the highly technical exploration and mining activities. Some community members see the latter as an opportunity for economic development. However this most often leads to risks related to increasingly higher expectations.
In view of the new economic developments in the area due to mining activities, the potential for getting benefits from royalties, employment, providing services and witnessing how local communities located in the area of direct impact from Las Bambas have improved their access to economic benefits, many families have returned (after 20 years) to the Haquira Project’s area of direct impact. According to a number of community members, these returning residents have created internal challenges. Some of them aspire to leadership positions and claim to have land rights. The 2010 census for Huanacopampa reported 25 families, while the 2014 census indicated the presence of 125 families. In Lahuani 40 families were reported in the 2010 census but 115 families were reported in 2014. A similar pattern was observed in Paranani were the number of families increased from 90 in 2012 to 163 families in 2015.
Challhuahuacho, the district’s capital of the same name has become the centre of commerce in the area. Up until 2007 it was a sleepy settlement with thatched roofs, similar to many other communities in the area. The proximity to Las Bambas and its location in the project’s area of direct impact has turned Challhuahuacho into a boom town. As construction activity at Las Bambas peaks, people flood into Challhuahuacho. The streets are teeming with labourers making their way through the town’s unpaved streets. Every second building is either a store, a restaurant, a clothes washing facility, or a shop selling mining clothes. Two-to five-storey buildings serve as hotels, hostels or guest houses for the many hundreds, perhaps thousands of workers in the town. A local journalist and the mayor calculate that Challhuahuacho is continuously growing and may have as many as 300 hotels and 200
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restaurants. The Las Bambas project is building a separate town for permanent workers closer to the mine, creating economic uncertainty for the hotels and services in Challhuahuacho.
Internal Conflict within Local Communities of the Area of Direct Impact: Land Ownership Issues
The Haquira Project has four communities in the direct impact area: Cahuanhuire, Lahuani, Huanacopampa, and Paranani. These communities will be totally or partially relocated since they are located on top of First Quantum’s mineral deposit.
The provinces of Cotabambas and Grau, and some of its districts are competing for the benefits from the Canon Minero.
The area of direct impact straddles two provinces: Cotabambas and Grau. At the moment, Huanacopampa is located in the area of direct impact of Las Bambas and the Haquira projects since both companies share the same runway. Interactions between communities in the area are not free of conflict. Paranani and Huanacopampa are in a continuous dispute over the ownership of a piece of land. According to Huanacopampa residents, they are legally entitled to this land; on the other hand Paranani’s residents claim it as their traditional land. In addition, the airport, located on the disputed land, is legally registered in the jurisdiction of the neighboring district of Progreso (which belongs to the Province of Grau). According to a community leader from Huanacopampa, its assembly suggests that the community should to be part of the Challhuahuacho district (Cotabambas Province). As reported by a local authority these two communities’ internal conflict escalated in 2013 when a Haquira project community relations team outlined a proposed fence, requested by Huanacopampa, to prevent their cattle from trespassing onto Paranani’s ground. As a result, Paranani’s community members complained that they should have been consulted prior to locating the fence on traditionally owned land. As a Paranani resident explained, before mining activities took place in the area, both communities shared the land for grazing, but now they confront each other because economic interests are at stake.
According to most interviewees at the local, regional and national levels, the Presidency of the Ministers Council, whose responsibility is to deal with land ownership and territorial issues, has not solved the issue efficiently. Community members indicate that the government tried to solve the land use rights issues by validating Huanacopampa’s legal land rights documentation, but according to Paranani the traditional communal land was never recorded in documents. Paranani’s community members suggest arbitration or mediation to solve the land rights issue with Huanacopampa, and have requested that someone familiar with the local context chair the proceedings.
Younger people from Huanacopampa would like to be part of Challhuahuacho (Cotabambas) due to their proximity to Challhuahuacho and to be seen as “socially accepted”. They also see it as a better opportunity to receive the Canon Minero by being under Challhuahuacho’s territorial jurisdiction.
Social Dynamics within Other Communities
People returning to the communities in areas directly and indirectly affected by the Haquira Project account for the growth in population since 2008. This increase has resulted in higher expectations in terms of work opportunities, and improvements in the provision of services and infrastructure in response to the growing populations’ basic needs. For example, Tambulla, a community whose growing population is a result of returning people, is interested in becoming part of the Haquira Project’s area of direct impact given its geographic proximity to Lahuani and Paranani. However, Lahuani, Paranani, Huanacopampa and Caraihuacho are not pleased with Tambulla’s initiative since
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they would have to share the resources they would receive from the company’s social budget with Tambulla, which has a larger population.
KEY STAKEHOLDERS AND THEIR PERSPECTIVES ON CONFLICT
Local Level
Haquira Project’s Staff
First Quantum continues to supports its community relations and environmental team and acknowledges that it is important to maintain a positive relationship with all local stakeholders and to contribute to the well-being of communities. While the project is still in the advanced exploration stage, the company’s contribution to local communities has focused on education, leadership capacity building and the organization of the communities in the area of direct impact into various commissions. These commissions deal with housing, economic development, infrastructure, vulnerable groups, environment and land use planning. According to First Quantum’s staff this organization has helped avoid local conflicts.
NGOs
Their role, as described by some of their representatives, is not anti-mining. They have a permanent presence and their outreach includes local communities in the area of the Haquira and Las Bambas projects. They build capacity in the following areas for local community members: collective rights, conflict prevention, environmental monitoring, mining activity impacts, partnerships, land values, communications, benefits community members should receive, negotiation skills development, sustainable development projects, and land use planning. Most of the NGO work is done in Paranani and Tambulla.
Local Farmers
Most families have small parcels of land for the cultivation of basic food crops such as potatoes. They also have sheep and camelids that graze on communal land. These families are getting organized into an association to help them prepare for the potential economic boom that the Haquira Project might bring in the future. As stated by the small farmers association: “With Las Bambas things caught us by surprise and we got frustrated with the lack of job opportunities. Now, with First Quantum we are thinking strategically and getting ready to contribute to the upcoming economic development in the area”. On the other hand, there are also local farmers concerned about the potential negative impacts of mining activities such as damage to the environment.
Communities Located Outside of the Area of Direct Impact
These communities, and Tambulla in particular are experiencing an accelerated growth in population. Former residents return with expectations of becoming part of the Haquira Project direct impact area and to benefit with jobs or service contracts. Community leaders from Tambulla are being organized by citizen organizations to attract attention to the disparities being experienced by neighboring communities. Some residents from communities located outside the direct impact area bemoan their collective decision making regarding local development, and continue to be frustrated over differences in wealth distribution by the government and the company. According to a resident from Paranani,
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the communities within the Haquira Project will go through the same experience as happened at Las Bambas: “When Las Bambas initiated activities, a federation tried to keep the communities united, but the federation continued to weaken to the point that each community became autonomous. So the company negotiated more with some communities, less with others, and none with the rest. The company offered jobs and other benefits while the federation didn’t have much more to offer, which ended up debilitating it.”
Communities in the Area of Direct Impact
The four communities in the area of direct impact are in favour of Haquira’s exploration and mining activities in the area: “Our intention is work well with the company”. Their expectations are high, and they are willing to work out their differences. They fear the changes that the new economic activities will bring to their communities’ way of life. One community member from Huanacopampa (a community that will be relocated in the future by First Quantum) mentioned: “It’s better that the company will leave for two years, that way we can live in peace for a couple more years” With the experience of Las Bambas, they feel better prepared about what to do and what to ask for. Their social dynamics have changed since the return of hundreds of community members. With their arrival, new leadership flourishes, and they all have the common wish of prosperity for their communities. A distinct difference from their practices in the past is the individuality each community has adopted to negotiate their interests with the company. In the past as mentioned by some community members, the communities used to think more in terms of collective benefits and negotiated collectively. Internal conflicts between Paranani and Huanacopampa due to land rights issues have deepened the differences between them.
The Resistance Committee (Comité de Lucha)
The Resistance Committee identifies itself as a pro-development group, but is viewed as ananti- mining group by many community members. The committee claims it is fighting for equal benefits for all the communities in the area, particularly the 33 community members of the Cotabambas Farmers’ Federation. Counts with an advisor who analyzes the EIA from Las Bambas its contents and gaps. It also demands increased consultation and participation in environmental matters and economic development.
Resistance Committee members explained that the main reasons behind their actions and their claims and grievances include:
• Protests against the government – communities want to receive benefits
• Protests against the company – lack of credibility, lack of participation and consultation on topics related to the EIA
The communities have the last say on who leads the Resistance Committee, therefore the leaders have to be ratified by the community members at an assembly.
Small Business People
With increasing economic development of Challhuahuacho (the district’s capital) and the changes due to the presence of many workers from Las Bambas, the communities in the Haquira Project area are preparing for the increased economic activities that will take place in the future. For example, some of them are getting loans to buy machinery or vehicles to provide transportation services while
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others are seeking an opportunity to join the small farmers association. Still others are requesting the company to teach them how to establish hotels and restaurants just like in Challhuahuacho.
Municipality
Local communities often express their frustration about the lack of benefits they receive from mining activities in the area. The benefits from mining royalties distributed by the central government as the Canon Minero to local authorities have not met local expectations, nor have contributed to the local economy in a significant or conspicuous way. Local communities continue to have basic needs, and the municipality seems to lack the capacity to deliver on economic development matters. The municipality’s position is not clear, but tends to be seen as closer to the mining companies’ interests.
Regional Level
Governor’s office
The Governor’s office is organizing a new office for conflict prevention with the support of the UNDP. While the regional office’s main focus is on artisanal mining, it acknowledges that land rights issues need to be addressed in the Apurimac region, and in particular, in areas where mining or exploration activities take place.
Peruvian Ombudsman (Defensoría del Pueblo) – Regional Office
The ombudsman’s office has a clear picture of all key stakeholders, interests and factors involved. Nevertheless they are highly frustrated given the high demand on their services and their limited capacity to address and prevent conflict situations. The need for conflict indicators is one of their biggest challenges that at the moment inhibit them from implementing more preventive measures.
National Level
Ministry of Energy and Mines (MINEM)
The Ministry of Energy and Mines (MINEM) aims to promote the integral development of mining activities by regulating, controlling and/or supervising as appropriate. Recently, it added the function of overseeing companies’ commitments. Until 2007, MINEM was tasked with the enforcement of environmental responsibilities, but this responsibility was passed to OSIGNERMIN and OEFA.
In 2011, MINEM implemented a conflict prevention strategy consisting of workshops and forums for citizens to be held prior to the granting of permits. Currently MINEM works with the General Office for Social Management (OGS) to harmonize the interests of companies and communities, by acting as a facilitator.
Ministry of Environment (MINAM)
MINAM has a Social and Environmental Affairs Advisory office (OAAS) specializing in the management, prevention and transformation of socio-environmental conflicts. The OAAS office is responsible for proposing strategies suitable to the context and demands of local people. In late December 2015,
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MINEM created a global environmental certification body, SENACE, which will act as the only authority for EIA matters.
Presidency of the Council of Ministers (Presidencia del Consejo de Ministros – PCM)
The Presidency of the Council of Ministers (PCM) is the institution that initiates dialogue round tables (Mesas de diálogo) and negotiation tables (Mesas de negociación) for discussions on development in mining areas. In 2012, the PCM created the National Office of Dialogue and Sustainability (ONDS), a technical organization whose main goal is to conduct a dialogue with a variety of social activists, representatives of private institutions and public officials who work on reconciling differences, social controversies and conflicts around the country.
The professionals who conduct the ONDS dialogues are assigned to various territories and are responsible for designing intervention strategies (roundtables, workshops, or other mechanisms) and managing specific cases of conflict.
In 2014, during Dr. Wladimir Huaroc’s tenure as High Commissioner of the ONDS11, the creation of a National System for Prevention on Social Conflict12, was proposed to link the local, regional and national levels of government, however this initiative has not been implemented to date.
Key Players
Table 3: Key Players and How They See Each Other
Primary Actors
Secondary Actors
Stakeholders’ comments on Regulators how they see each other
Tertiary Actors
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• “…Their activities are welcome, but their local practice needs improvements” • “Our people want [to have] the mine in our area” • “The lack of constant communication and material information creates suspicion and mistrust” • “The company is not complying with all its commitments” • “Companies create an environment of patronage and dependency” • “First Quantum wants to do the same as Las Bambas, for that reason we will finish with Las Bambas first and then we will initiate our activities with the Haquira Project. We can’t let them do what they please” The Haquira • “…On the one hand, there are companies that make many mistakes, on the other hand, there are companies’ mistakes Project combined with community members’ annoyance with the national government’s attitude. At the end, the company ends up suffering the consequences of the situation” • Some community members think that the community relations team prevents communities within the area of direct impact from supporting and joining external communities in protest by telling them that if they add other communities to the area of direct impact, they will have to divide their benefits among more beneficiaries. • “There is no coherence between the community relations team members who work with social conflicts and those who work with an outreach program. For that reason, the four communities [in the area of direct impact] are still divided” • “Companies [not First Quantum specifically] generally talk about Corporate Social Responsibility, but continue to practice philanthropic methods. They [mining and exploration companies] do not invest in the value chain, nor in local procurement”
• “Their practices have a direct impact (positive and negative) on the Haquira Project. For example, the payments for land Las Bambas purchases in the area have increased the value of land in the area” Project • “Inconsistencies found in the EIA study creates suspicion and fear” • “Las Bambas has not benefited from a strategic economic and development plan for short, medium and long terms”
Las Bambas • “A group of ex-workers from Las Bambas, resentful of the company, returned to agitate against the mine. They also advice ex-workers communities on negotiations with other companies [First Quantum]” • “By leading opposition groups these people emerge as new local authorities” • “They are not an anti-mining group, they just have a big fear and demand more attention to their priorities” The Resistance • “…they demand their rights, respect and economic investment in their areas” Committee • “…they can aggravate the social conflict. Social movements have been organized with Tambulla’s townspeople because they (Comité de lucha) want to be included in the area of direct impact” • “Key stakeholders adopt political roles and gain followers in specific moments”
Elected leaders • “The communities’ authorities support the Haquira Project, but leave the communities’ interests aside” Community • Community is interested in becoming part of the direct impact area of the Haquira Project. members from Tambulla New residents • “…they create pressure to be included in the company’s area of direct impact” from communities located in the area of indirect impact Community • “Locals think that if they receive training they should be automatically employed by the company” members from • “Rural areas in Andean regions are most often places where people with a low level or no education are an easy target for the area of misinformation from stakeholders who are not fully informed and create fear” direct impact (Huanacopampa, Paranani, Ccohuanhuire, Lahuani) • ‘The rising cost for accommodation has been institutionalized. This creates pressure on other services and products Small business increasing the local cost of living” people • “New community entrepreneurs. Community members expect to exercise the right to provide services to the company. The company then loses the option to select the best providers” Truck drivers • Seen as creating pressure and demands to provide services to mining companies
Small-Farmers • “10 – 15 people make decisions for 33 communities from the Challhuahuacho district” Federation of • Established in 2003. Seen by some stakeholders as community groups that emerge circumstantially to make claims the Province of and demands. Cotabambas (Federación Campesina) • “They create fear, particularly with environmental issues” • “They educate us on our rights and help us analyze the EIA” NGOs • “NGOs mediate conflicts as an element of protection, but their agenda should be analyzed” • “The NGOs and anti-mining groups have capitalized well on the incapacity of the government and the company” • “NGOs do not socialize. They don’t suggest solutions nor validate their plans and actions with the government or other key stakeholders”
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• “It is a regional matter but the central government interferes and exacerbates the situation” Presidency of • In the past, the government wouldn’t see itself as part of the conflict. It would instead monitor the conflict at a distance. ‘The Ministry of Energy and Mines (MEM) would tell us: “the communities are your problem”. At present, with new public the Council policies established by the Presidencia de Consejo de Ministros del Perú (PERU) all parties involved are encouraged to share of Ministers responsibility for social matters. (Presidencia • “PCM representatives visiting the local area don’t know their roles and responsibilities and end up exacerbating the conflict del Consejo de situation” Ministros – PCM) • “The PCM is not addressing local peoples’ concerns related to land rights” • “The PCM doesn’t know how to mediate, it usually gives the impression that it favors the company with its silence or with its comments” • “The PCM is not effective”
• “We visited the Ministry of Energy and Mines to seek help but we didn’t get any results” Ministry of • “MINEM came to our community fair, but we didn’t talk about the community” Energy and • “We have visited MINEM and PCM to submit a document and request their intervention, but haven’t had any response to Mines (MINEM) date”
Ministry of • (No comments surfaced regarding the Ministry of Environment) Environment (MINAM) Regional • “The regional office is not efficient” government • “The regional office representative hasn’t visited the area” authority • “I have been present at all the negotiation tables to date, and haven’t seen the governor at any of them” • “We went to the regional government office and we were told that they just deal with artisanal mining. ‘Go to the MINEM’”
Municipality • “Doesn’t act to integrate the communities and has different messages for different parties” • “Local communities are ‘divorced’ from the local authorities since there is a lack of participation” • Mayors are completely separated from civil society organizations. They don’t attend the same dialogue tables and do not defend these organizations’ agendas either” • “No high-impact project has been developed in the area, so, how can we remain calm?”
National • “The responsibility of the government in conflict cases is government • Significant for a number of reasons: a) creates more flexible norms, b) reduces timelines to reactivate the economy, c) has no local presence – for example there is no local office for environmental evaluation and water authority (Autoridad Nacional del Agua - ANA), d) permissive policies benefit mainly private companies”, e) national authorities become company employees. • “The relationship between the government and the company is too close. In some cases government officials even become company employees. We [community members] have been left on our own” • “If the company doesn’t comply with its responsibilities, where should we go? To the Defensoría del Pueblo or to the PCM, or municipality or to the governor?” • “The government creates conflict by indolence or lack of capacity” • “The government wasn’t prepared to address complex problems … and conflict is a complex problem”
Politicians • “…They just visit the communities during elections” • “A few politicians have visited the area with the purpose of misleading locals and to convince them that the creation of new districts will bring benefits to all.”
National • “The Defensoría del Pueblo generally calls us to update them on how the situation is locally. However, they don’t usually ombudsman visit us” – regional representation (Defensoría del Pueblo)
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Interactions Between Key Players
National Level
Government – Local Authorities
The government has organized ‘dialogue tables’ (for open discussions) and ‘working tables’ (for negotiation). The ‘dialogue tables’, as mentioned by the regional ombudsman have two drawbacks: a. They respond to escalating conflict situations and do not guarantee future conflict prevention measures; b. They lessen the parties’ differences by working on specific small projects in order use upthe available budget, but there is no integral management of economic resources.
On the other hand, the working tables usually address specific projects that are not usually aligned with provincial development objectives. In other words, there is a disconnect between national, provincial and local economic development plans. In addition, according to community members and civil society representatives, the authorities attending the dialogue and working tables do not represent everyone’s views and the meetings do not include civil society representatives, therefore underlying issues are not discussed nor addressed. Civil society representatives feel that the working table discussions, among other objectives, are seeking to divide them.
Government – Civil Society – Community Members
Community members reported that when the protest took place leaders and authorities were in meetings with the government for 2-3 days, but afterwards their attention seemed to be directed elsewhere.
Regional Level
Governor’s Office – Communities
There is no obvious relationship between the regional office representatives/institution, local community members or the Haquira Project or from Las Bambas. As mentioned by most community members, they are required to solve land rights issues, but their presence has not been evident to date. According to the Governor’s office, the regional office is organizing a new conflict prevention office that will help with land rights and land use matters.
Regional Ombudsman Office – Communities
The office has a good relationship with the communities even though the representatives from the office rarely visit the area. The reason for the absence is that the regional ombudsman monitors the area closely through direct conversations with local community members and authorities by telephone.
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Local Level
Company – Company
Conversations between Las Bambas and First Quantum do not usually take place, as mentioned by First Quantum’s personnel. There is no coordination and responsibility for socio-economic, environmental or conflict prevention objectives despite both companies sharing the same stakeholders and some communities in their direct impact areas.
Company – Communities a) Haquira Project – communities
Local communities from the area of indirect impact claim that much attention and benefits are given to the communities in the area of direct impact, while external communities are left aside.
“The CEO can be trusted, but that is not the case with the community relations team”
At the moment, there is uncertainty between the community members from the Haquira’s project area of direct impact and the company. As mentioned by the communities, they are not sure what will happen next after the company reduces its operations. They expect to sign an agreement to ensure that the commitments to the communities will continue to be met. This in turn, raises more expectations until First Quantum addresses this issue. b) Las Bambas – communities
The people who died at the Las Bambas’ community-company conflict on September 25th were company workers. According to an NGO representative, this shows that the sentiment of local workers is stronger to the communities’ interest and position than is their loyalty to the company as employees.
Civil Society – Local Authorities
The relationship between the ‘resistance commission’ and local mayors is broken. According to community members, this is detrimental to civil society representatives since the government’s trust rests with the mayors.
Civil Society – Industry
According to a member from the ‘’, Las Bambas has offered jobs to members of the Resistance Committee. Civil society group members consider this an act of corruption.
When asked, how could conflict be prevented, representatives from a civil society group stated: “We want them [the company] to recognize their mistakes while we recognize ours”.
As mentioned by a member of the Resistance Committee: “Each company should view us [community members] in a different way, we are now a new generation with higher education and we know and understand EIAs. If the company explains the EIA in a legal and formal manner, then it can become a sustainable process”
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Community – Community
Communities located in the Haquira Project area of direct impact: The community of Huanacopampa and Ccaraihuacho gather together in one assembly and decisions are made in those community meetings. Paranani and Huanacopampa have poor relations given the pending land use rights issues. Lahuani had tried to summon the communities but was unsuccessful.
Each community negotiates individually, according to their own needs. There is no spirit of collectivity among neighboring communities when it comes to negotiating with the company. In this regard a community member from Paranani commented: “Each community negotiates its own interests. That’s not good because the more we are together, the more we can do, but in this case there will be communities that will win and others will lose. The authorities will play an important role in this matter”. Paranani community members think that people from Ccaraihuacho are not interested in meeting them because they will receive more benefits from the company given that most of the deposit is under their land.
According to some community members, in the past, communities used to organize assemblies where many communities participated to discuss and make decisions based on collective benefits. Nowadays, each community makes decisions based on their own economic needs. The social structure and spirit of community has slowly changed into disaggregated communities competing against each other for land and economic benefits.
The traditional rule of passing hereditary land rights to male descendants has now changed to female rights of land. This change has increased the number of residents from other regions or provinces marrying local women who live in the direct impact areas of the Las Bambas and Haquira projects.
Civil Society – Communities
The small farmers federation organizes all the communities to talk about community rights.
Cooper Acción, a national NGO that focuses on the Apurimac region, provides capacity building sessions to Paranani. Huanacopampa and Lahuani do not have any NGO relationships.
Some opposition leaders, who led large community group movements in the past, have decided to leave their leadership role and have become strategic thinkers for community development initiatives with community members, particularly in agriculture.
As stated by community members, anti-mining movements with key roles in conflict situations from other mining areas in Peru, influence local (Haquira’s project) area protest groups.
Local Authorities – Communities
To reduce land ownership conflict cases and encourage integration between Huanacopampa and Paranani, the local police department organizes sports competitions.
SYNTHESIS
Table 4: Key Conflict Factors Identified By Key Players
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Key stakeholders
Key factors If yes, which Any actions stakeholder(s)
taken by
stake-holders? (Y/N)
National/regional government National/regional Local government Industry direct of Communities/areas impact External communities society Civil Academia Institutions
Contextual Drivers
Use of armed forces by government to address conflicts x x x x Y Government
Democratic system not ready to include the peoples’ demands x x x x N for participation and consultation
Hacendados (landowners with high economic capacity and social x x x x N/A status) imposed practices to the detriment of indigenous groups and indigenous peoples rights
Psychological dynamics – perceptions, emotions, resentments x x x x x N
Issues with government’s institutional capacity x x x x x x x Y Government, International support
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ac o consultation – rom government overnment
aps and issues ith e isting national policies and norms
olitical agendas ample industriali ation
hanges in social structure autonomous communities ne leaders ith returning residents etc
ac o practical con lict preventive methodologies and indictors overnment
Latent Drivers
nsolved territorial and land rights issues egional ov
Di erences in ealth and ene it distri ution et een communities in areas o direct impact and communities located outside o the area o direct impact – ncreasing e pectations
ac o opportunities to participate in decision ma ing processes that a ect local communities
nvironmental concerns
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investment plans and government’s economic development
Other factors
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o ed cation level
ear lac o tr st
omm nit mem ers are not read to disc ss and negotiate
elective engagement – eople or gro ps t at create dist r ances get more attention t an t ose t at promote dialog e
epresentation at dialog e ta les ma ors lac credi ilit civil societ is not represented
Communities’ decision ma ing process – don’t want to feel they are r s ed to ma e decisions
norgani ed protests lead to violent acts
Triggers (for Las Bambas conflict event on September 29th, 2015)
ac o cons ltation and participation on decisions related to environmental matters
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symmet ies with wealth dist i ution and othe enefits
olitical inte ests
Table 5: Key Players Identification Of Actions To Solve Conflict Issues – Unraveling Points Of Common Ground
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Key Stakeholders Responsible Party
Proposed Solutions
regional regional
/
National government Local government Industry direct of Communities/area impact External communities society Civil Academia Institutions
Intervention of PCM and other government institutions to clarify issues x x x x x related to land ownership
Fair distribution of benefits and wealth x x
More participation in local investment planning and execution – not only x x x x x interviews
The Haquira Project should take advantage of its downtime (1.5 – 2 years) x to develop the procurement and other skills of local community members
Improve capacity building and training in local communities to offer jobs x x x that are not just labour-related.
Regional government should address land ownership issues to avoid x x x x x disputes involving overlapping territories
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LESSONS LEARNED
• Different cultures, capacities, timing needs and trust influence the capacity for dialogue and negotiations.
• In order to research conflict, it is important to analyze stakeholders’ relationships and links.
• The opportunity of conflict transformation is continuous and is an opportunity to re-define relationships.
• Clear criteria for conflict prevention and harmonization of indicators are key to avoiding practices centered on post-conflict methodologies.
• It is important to align and integrate government investment plans at the national, regional and local levels with corporate objectives to address short, medium and long term socio- economic needs, and to avoid social and economic asymmetries.
• Accelerate the implementation of reforms to civil services (results oriented public services).
• It is important to identify the players and their interests, since their positions might change, but their interests often remain the same.
• Conflicts express much more than conspicuous manifestations of frustration or disagreement. People demand more democracy, consultation, respect and participation in the decision-making processes and direct benefits.
• When operating in ‘low trust’ environments, companies must work harder to build trust with local people and other interested parties, as breaches in trust are often costly and hard to re-establish.
• Improvements in dialogue tables include a revamp of participation methods and inclusion of relevant stakeholders. Avoid centralized meetings in Lima, and ensure that the people sitting around the table are legitimate representatives of different groups.
• New mechanisms of participation and participation standards are needed. Improved participation of civil society at dialogue tables is needed to advance conflict transformation opportunities.
• Information plays a key role in transparency, trust building, local community empowerment and conflict prevention. Information should be available to all parties in order to avoid the spread of misinformation.
• Regional government capacity building is key to improving integral investment plans, wealth management, corruption reduction and conflict prevention. Regional offices would also benefit from sharing functions with national dialogue offices.
• More government participation between corporate and community relations is needed.
• Intercultural communication needs improvement.
• Context is an important factor in conflict analysis and the development of improved corporate and public policies.
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SUMMARY OF KEY OBSERVATIONS
National policies for wealth distribution include the Canon Minero. While it may be considered a good initiative in theory, its application on the ground and increasing levels of risk indicate that it may lack some important factors in its implementation such as: a) The capacity to invest in implementing public works that are effective in supplying basic needs to an extended number of inhabitants; b) The means to ensure accountability of public servants responsible for economic development; c) The participation of community members in planning and executing public investment initiatives; d) The integration of other government institutions to maximize economic development using the resources from mining investment in the area; e) The opportunity for improvements in the social and economic investment system.
Companies and the government most often focus on communities located in the area of direct impact, but the main issues tend to boil over in communities located outside of the area of indirect impact. External communities’ interests are rooted on the inclusion of fair distribution of wealth and benefits.
The First Quantum community-relations team and the communities need to improve the information strategies to avoid confusion and misinterpretations. For example, a local community person related the following: “The company said that they would leave [the project site] due to low metal prices, but the community relations team said that they will not leave the area. We don’t know what their strategy is, perhaps the community relations team is not communicating the head office’s message properly”.
The government tends to analyze conflict from a structural level rather than from issues emerging from key players and factors. It therefore tends to apply the same methodology to all cases. The use of public force is one such example.
Different opinions, and perspectives are held on such things as: how to distribute benefits, the creation of new districts, who should be included in the area of direct impact, how should the Canon Minero be distributed. These are all public policies that to date have the tendency to maintain the status quo of expectations, frustration, resentment and conflict. Improvements to public policies are still needed. Changes to present government institutions and their relationships have improved, however, conflicts and potential conflicts suggest that there is still more room for improvement.
Most resources and efforts have been focused on communities in the area of direct impact. However, opinions from different stakeholders indicate that conflicts may be ignited by communities located in the area of indirect impacts. The underlying reason for this is rooted in the need for a fair distribution of wealth and benefits.
Members from academia raised an important question: “How to re-establish relationship links when the stakeholders are the same but the conflict crisis is from another company located in the same area?” The answer to this question is complex. Understanding the context and issues that affect all stakeholders involved, including companies sharing the same conflict crisis, may help to identify potential conflict management and conflict prevention measures.
The attention paid to and economic benefits received by communities located within the area of direct impact creates anger, disapproval and dissatisfaction among those who are not located in these areas. This disparity forms the basis for the interests and positions that converge in two important matters:
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a) benefits from the company and/or the Canon Minero and b) participation. To most interviewees at the national, regional and local levels, the disparities in economic wealth among communities sharing the same geographic region reflect gaps in Peruvian policies and institutions dealing with economic development and conflict prevention.
The conflict factors of wealth inequality, lack of credibility and fear were identified by different stakeholders. This information aids in understanding the dynamics of conflict and suggests that when a belief becomes institutionalized or identified as a common view, it possesses the power to guide people’s behavior. However, when it comes to negotiations, communities tend to take individualistic rather than collective approaches.
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NOTES
1. https://www.pwc.de/de/internationale-maerkte/assets/doing-business-in-mining-peru.pdf
2. Ricardo Morel, former Vice president Corporate Affairs, Antamina. Jose de Echave, Director of Cooperación, an NGO operating in the Apurimac region.
3. http://onds.pcm.gob.pe/construyendo-el-sistema-nacional-de-prevencion-de-conflictos-sociales- enfoques-avances-y-desafio/
4. Colonial landowners in Peru are usually referred to as Hacendados in Spanish, whose dominant political and social power during colonial times led indigenous peoples to marginalized positions.
5. Ruiz, G. 2005. Neoliberalism under crossfire in Peru. Internalizing globalization: the rise of neoliberalism and the decline of national varieties of capitalism. https://www.academia. edu/4620405/Neoliberalism_under_Crossfire_in_Peru_Implementing_the_Washington_ Consensuns
6. http://aceproject.org/regions-en/countries-and-territories/PE/case-studies/guia-de-participacion- ciudadana-del-peru-jne-2008
7. SENACE. - http://www.minam.gob.pe/el-ministerio/organismos-adscritos/senace/
8. http://gestion.pe/economia/apurimac-concentra-mayor-inversion-minera-peru-us-9130- millones-2133332
9. http://www.first-quantum.com/our-business/development-projects/haquira/default.aspx
10. https://www.inei.gob.pe/media/MenuRecursivo/publicaciones_digitales/Est/Lib1261/Libro.pdf
11. ONDS, http://onds.pcm.gob.pe/
12. Sistema Nacional de Prevención de Conflictos Social ONDS_PCM http://www.pcm.gob.pe/ transparencia/willaqniki/willaqniki04.pdf
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