Sustainability website / Case Studies 2004 / Xstrata copper / Community relations at Las Bambas

Community relations at Las Bambas

Corporate social involvement (CSI) and community relations are high priorities for Xstrata Copper's Las Bambas exploration project in Southern Peru, South America.

Since Xstrata Copper's successful bid for the project in August 2004, a team of community relations professionals has begun work in the area, preparing for exploration work which began in March 2005. The team is headed by a community relations manager and consists of four community relations officers and one sustainable development consultant. The team members bring a range of community relations experience to the project. Xstrata Copper's Community Relations Manager in Peru, Raul Farfan, has worked in similar mining projects in the region during the past eight years, and has particular local experience in consultation, participatory planning, land purchasing and resettlement.

Rural villages, most of which have subsistence economies based on agriculture and animal husbandry, surround the project area. The level of illiteracy in these communities is high at around 70% and basic infrastructure and services are scarce. These communities have a strong cultural identity; they continue their ancestors' tradition of working the land, while traditional costumes are still the preferred style of dress for men and women alike. The local language spoken in the area is Quechua. To facilitate effective communication between the local people and the community relations team, Xstrata's team includes two Quechua speakers.

"In 2004, our community relations team concentrated on three main objectives," Raul said. "The first of these was to promote dialogue and engagement with local communities regarding the exploration project, by encouraging their participation in activities such as consultation sessions with Xstrata Copper representatives.

"The second objective was to begin consultation with relevant Peruvian non-government organisations. This consultation is expected to continue throughout the life of the project.

"The third objective was to identify any concerns or questions that key stakeholders may have about the project. Two perception studies have been completed to date. The key concerns raised by local residents related to access to land and potential resettlement, the potential environmental impact of mining activities, particularly on water, and the potential for an increase in social disruption following the development of a mine at the site. We are working with local communities and other stakeholders to address these concerns, including initiatives such as involving the local community in participatory monitoring of the local environment and by developing a code of conduct for any contractors or employees at Las Bambas.

"There is also a great deal of interest in the potential for job creation that the mine would bring about. Xstrata has adopted a policy of ensuring that only local residents are eligible to apply for unskilled positions at Las Bambas. We are also putting in place an extensive training programme to convert the largely unskilled local workforce to a semi and fully skilled workforce able to participate fully in the construction and subsequent operation of a future mine. In addition, we are investigating ways to contribute to improving the local economy, while simultaneously managing expectations of the project's effects on this economy."

One of the encouraging results of the consultation process so far has been the gradual building of trust between the members of local communities, their leaders and the Las Bambas project team. Another achievement has been the start of work on projects that the local communities identified as priority areas. These include a training module in construction for local people and work on projects to improve local agriculture.

As a result of the consultation process, feedback from the local communities indicated their support for Xstrata Copper to start the exploration programme in March 2005.

As part of project development guidelines specified by the Peruvian Government, Xstrata will also provide $45.5 million to a Community Trust to benefit local communities. After identification and prioritisation by the communities involved, it is also anticipated that at least three community development projects will be in place.