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Nueva Fuerabamba

FUERABAMBA COMMUNITY RESETTLEMENT PROCESS

Resettlement requirements for mining projects are mainly determined by the location of the ore deposits. The Ferrobamba deposit was located in a property owned by Fuerabamba farming community. In addition to the ore deposit, it was necessary to have sizable land areas for the construction of the project’s main infrastructure.

The resettlement process was designed for this purpose, aimed to creating opportunities for all the people involved and helping improve their quality of live in terms of basic needs, access to social services, and employment opportunities, among others.

The Resettlement Plan for the Fuerabamba community was designed and implemented taking into account the following:

  • To embed a Vision of the Resettlement as an opportunity for development.
  • To comply with applicable Peruvian laws and voluntarily taking as reference international standards and the company’s corporate policies.
  • To provide a free and informed consultation and a significant participation to all the people involved in the planning, implementation, monitoring and evaluation of the resettlement.
  • To conduct baseline studies and evaluate the potential for impacts resulting from land acquisition and resettlement.
  • To offer options for resettlement sites that include a free and agreed eligibility for the indemnification framework and resettlement options related to asset replacement.
  • To include sustainable development programs, namely, initiatives that intend to improve the resettlement’s potential for benefits.
  • To collect inputs and take into account the needs and preferences of the community in the design of the Resettlement Plan and the framework of compensations and benefits.
  • To inform about the benefits of the resettlement, above all, the positive environmental effect generated by a new city planned taking into account the current legislation on construction.
  • To implement a grievance and dispute resolution method from the pre- to the post-resettlement stages.
  • To implement a program that monitors and evaluates commitment compliance and post-resettlement impacts.

RESETTLEMENT PROCESS STAGES

NUEVA FUERABAMBA

It is the new development built by Las Bambas to resettle the Fuerabamba community residents. It is located between Chila and Choaquere communities, in Challhuahuacho district, Cotabambas province, Apurímac region.

The resettlement agreement included the planning and construction of 441 houses for the same number of families. It also has access roads, a health centre, a school, a chapel, a town hall for multi-purpose meetings, a market, green space and a home for the elderly, among others.

Worth highlighting is that the land where the Las Bambas mining operation is carried out belongs to the company since 23 November 2011, when the farming community transferred the property called Fuerabamba in favour of the company, in exchange for economic compensations and duly determined landholdings.

The physical resettlement concluded in 2016 with Las Bambas having moved 100% of the families. This is a fundamental milestone in the history of the operation.

POST-RESETTLEMENT

We continue to honour the commitments described in the Agreement Summary and the livelihood restitution programs, created to meet the priority needs of the resettled families. The following chart shows the main progress achieved in 2017:

AREA PROGRESS ACHIEVED IN 2017 (commitment compliance)
1. Education Strengthening of tripartite agreement to improve education quality in the Nueva Fuerabamba school, hiring of teachers and specialised professionals, scholarship program, and summer school program, among others. Las Bambas is also working with the Education Commission.
2. Land The dialogue to address all of the community’s pending land matters was approved last year.
3. Cattle breeding A moderate progress continues with foreseen and committed investments at the Yavi Yavi Property. The investment in 22ha of improved pastures and cattle genetic improvement continues.
4. Agriculture Under a previous agreement, when the farming hectares are reduced as a result of the resettlement and as long as the replacement of farming land continues, the company and the community have agreed to promote and finance the supplies for the planting of potatoes by Fuerabamba residents interested in this activity. 112 community residents are participating in this campaign. This helps families to maintain production and consumption of self-produced food, reproducing the practice of planting with better production possibilities.
5. Employment The employment proposal with Fuerabamba was approved in a community meeting and the community sent a list of candidates. The labour insertion process has started by requesting the corresponding documentation to verify their particulars and conduct background checks.
6. Local economic development Completed the infrastructure and services of the Fuerabamba market. The water, drainage and electric power systems are operational in more than 25 market stalls.
7. Organisational strengthening The work with the community board to improve and boost activities that strengthen Fuerabamba’s institutions continues.
8. Vulnerable groups The program for the care of vulnerable groups is improving with the incorporation of a specialised staff that would join the four professionals who are currently collaborating with the program. This includes support, recreational activities and care for the identified vulnerable groups.
9. Health The program to fight anaemia has been implemented at the school; home visits to pregnant mothers and children under three years of age within the framework of the fight against chronic malnutrition in children; mentoring and medical care for senior citizens; and medical care at the health centre, among others.
10. Sanitation A training program and cleaning campaigns have been implemented with the school, in partnership with the health centre. This program creates awareness among children and young people so that they play a leading role in environmental protection and the collection and treatment of solid waste.