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34. Tintaya addresses community concerns through formal consultation processes with stakeholders
For the past few years, long-standing community concerns about environmental and land management issues at our Tintaya copper operations in Peru, many dating from the days of state ownership, have been addressed through ongoing consultative processes with key community stakeholders. Recently, issues with regard to development of a new tailings dam have been raised by a group of community stakeholders not traditionally involved with the mine. The formal community consultation processes in place have provided a model for addressing this issue and seeking a solution that alleviates community concerns.
In December 2001, a facilitated meeting between Tintaya management and community representatives about environmental and social issues associated with the operation's activities led to the development of the Mesa de Diálogo, or Dialogue Table.
Since that time, participants in this forum have worked diligently to assess and resolve outstanding issues of concern. Considerable progress has been made, and recommendations from the work programs are being progressively implemented.
Despite good progress on historical issues of concern, a recent matter has arisen that requires careful management. In early 2001, Tintaya management sought environmental approval for a new tailings dam to enable the life of the mine to be extended for a further ten years.
The approvals process followed by the mine was specified by, and complied with, relevant legislation in Peru. Although all legal requirements were met, it has recently become apparent, after the approvals were granted and the dam construction largely completed, that stakeholder representatives from areas downstream of the dam had not fully participated in the approval process.
The stakeholder representatives have expressed concern about the potential for seepage from the dam to contaminate their agricultural activities in the valley below the dam. Technical reviews by international experts have confirmed the acceptability of the basic design of the dam, given the benign nature of the tailings material to be stored. Despite this information, concerns have remained.
The Company is working with the communities involved to explain the data and provide assurances regarding compensation in the unlikely event that any impacts should occur.
In an attempt to fully address the concerns of the downstream communities, a decision has been made to implement additional environmental controls. These will include:
- a seepage control pond and associated pump-back system
- further hydrological investigation and mapping of natural seepages
- additional monitoring bores across the valley floor
- a joint monitoring program to enable community members to jointly collect and independently analyse water samples
- formalisation of compensation agreements in the unlikely event that impacts occur.
The Company will continue to consult with the communities to explain these additional controls and seek to address any outstanding concerns.
To further enhance its relationship with the local communities, Tintaya has participated in the development of a Convenio Marco, or Framework Agreement, that specifies the Company's environmental and social commitments going forward.
As part of this process, the mine has committed to spending up to 3 per cent of its pre-tax profits on community programs over the remainder of its life. This commitment, which is in excess of the Company's corporate target of 1 per cent of pre-tax profits, has been proposed due to the extreme needs of the impoverished local communities around the mine site. The Convenio Marco is now being formalised.
