Compliance with commitments (ANNEX K)

The following is a summary of the work carried out in 2019 to fulfil the seven commitments of Annex K, a document which forms part of the concession contract between us, the communities in the area of influence and the Peruvian Government.

Implementation of an Environmental Impact Study (EIS) to preserve the environment, flora, fauna and water resources
  • We held 20 participatory workshops with communities from our areas of direct and indirect influence (13,032 participants).
  • We carried out 15 participatory environmental monitoring activities of water, air quality and noise.
  • We delivered eight reports of test results (water, air quality and noise in each community) to local authorities, and shared those results with eight stakeholders (communities and municipalities).
  • As of 2020, we preserved 28 archaeological sites and delivered more than 4,000 artifacts to the Abancay Museum. These activities involved an investment of more than US $29,000.
Creation of job opportunities for professionals, technicians and labourers from Apurímac region and  provinces as a priority
  • We have had a Local Employment Promotion Office since 2015.
  • We provided direct and indirect job opportunities for skilled and unskilled labour, to benefit residents of Apurímac region.
  • We have 2,205 direct employees and 4,164 indirect employees from Apurímac. Namely, 25% of our jobs are performed by local personnel.
Assisted resettlement of Fuerabamba community and payment of compensation
  • In 2010 we signed an agreement with the Fuerabamba farming community that included 171 agreements organised in 13 areas (the Agreement Summary). Since then, we have complied with employment programs, business promotion programs, economic compensation, urban land replacement, and social investment, etc. 
  • There are another 86 agreements from subsequent meeting minutes, bringing the total to 257 commitments undertaken with the Fuerabamba community as of 2020.
Land replacement for agriculture, livestock farming and housing
  • Compensation payment for land totalled US $2.7 million in 2020.
  • We assigned land for housing, livestock farming and agriculture under several compensation agreements reached with the Fuerabamba community for use of land and affected resources.
  • We strengthened the production chain of cattle and sheep owned by 674 families in 12 communities.
Respect for local culture and customs, especially human rights
  • We promoted festivals and traditional cultural expressions of the communities in our ADI. The 7th Interregional Dance Contest and the 11th Provincial Competition of Dances and Qhaswas (carnival songs) were held during the T’ikapallana (Flower Gathering Festival) 2020.
Social and environmental responsibility and creation of positive relationships with communities
  • From 2016 to the end of 2020, we invested more than US $1 million in education-related projects for school children from our ADI. 
  • We continued with the Las Bambas Scholarship Program, which has benefitted a total of 125 participants (101 from Fuerabamba, five from Carmen Alto, nine from Huancuire, five from Pumamarca, two from Manantiales, one from Mara and two from Manuel Seoane Corrales): 
    • More than 33% of the scholarship holders are studying for science or engineering careers. 
    • Fifty-one percent of scholarship holders are women, and 49% are men. 
    • Fifty-one percent study in Cusco, 21% in Arequipa, 16% in Lima, 10% in Apurímac and 2% in Puno.
Integration of mining development with agricultural and livestock farming activities
  • We carried out the Andean Crops project with an investment of more than US $213,000 (lower than expected, due to COVID-19), which has benefitted 1,400 families from 15 communities.
  • We carried out the Tree Nurseries project that recorded a production of 48,511 pine, queuña (Polylepis) and Cytisus racemosa seedlings, and 148 afforested ha in 34 communities from Challhuahuacho district.
  • We invested more than US $8,000 in the guinea pig breeding project, but it was rescheduled due to the pandemic and ended in February 2021.
  • We installed 227 ha of diverse crops. 
  • We promoted participation of 655 families from 15 communities of the ADI in livestock farming projects, enabling them to each increase their income by US $708 per year.