EXECUTIVE SUMMARY

this month ’ s series :

Points of conflict
The main tangible issue at play in
the social license process is water.
Multiple projects have stalled
over water sourcing and fears of
contamination, the current subject of
attention being Southern Copper’s
Tía María project in Arequipa
province.
Lack of framework
NGOs, community organizations,
local politicians, state government
and company representatives all
have a role in the dialogue process,
but in some cases roles are poorly
defined or not adhered to. Peru’s
institutional framework is largely
inadequate in guiding the process,
often leading to communicational
chaos, negative sentiment toward a
project and protests.
What’s in it for me?
Peru has very specific systems for
sending mining wealth back to the
communities where the mines are, but
what happens with this money once
it is back in local hands is a different
story. Communities often believe that
mining does not economically benefit
them.
Tintaya
The Tintaya mine in Cuzco region has
had to work hard on social license
like any other project, but thanks to
certain strategies has become one
of Peru’s main success stories in
community relations.
Social license in Peru: Exploring
the roots of discord
Peru is a country with mineral wealth
to rival any other territory. The Andes
mountain range runs from northern to
southern border, providing the deposits
that have led the nation to rank number
1 globally in silver production, second in
copper and zinc and sixth in gold. Mining
is not a new activity in Peru, but it has
changed significantly in recent years in
terms of tax regulation, environmental
controls and investment girth. The different
national governments in power over the
last 20 years have maintained policies to
encourage business and foreign direct
investment. As in many other countries,
mining has fattened Peru’s export revenues
and GDP and brought economic activity and
infrastructure to some of the poorest, most
isolated areas.
But with US$35bn worth of projects sitting
in the pipeline, Peru is suffering a serious
case of discord. The national government’s
pro-mining policies often clash with the
fears of those who live near a mining project
that their livelihoods and customs will be
affected, that the mine will have detrimental
Social conflicts at end-2008, by type
160
140
120
April 2010
effects on the environmental and that they
will not really perceive significant economic
benefits from its presence.
While the country has numerous mechanisms
in place that attempt to ensure that none of
this happens, convincing the locals is not
always easy. Mining companies often fall
short in their communicational strategies,
local authorities oppose mine projects as
a political technique and a multitude of
NGOs and community organizations with
different agendas serve mainly to confuse.
A lack of effective institutional framework
for structuring dialogue is one explanation
for these problems afflicting the social
license process.
Of course, each case is different and a
number of miners operating in Peru have
been highly successful in getting the local
population on board with their projects.
But most experts agree that this country
of 29mn inhabitants, where some 36% live
in poverty, needs to have a serious think
about mining’s role in its future and reach a
common agenda for going forward.

100

80

60

40

20

0
08

08

08

08

08

08

08

08

08

08
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ar

ay

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ov

ec
Ju
Ap
Ja

Ju
Fe

Au

Se

O
M

Active
Latent
Socio-environmental 93
Resolved
Local government issues 28
Regional government issues 8
National government issues 19
Municipal issues 11
Union/labor 15
Land demarcation 9
Electoral 6
Illegal coca farming 4
Other 4
Total 197

Source: Instituto del Perú (USMP)

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