2015 Annual and CSR Report
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Social Impact Resettlement
and Land Use

GRI Indicators

Mining activities require land, which sometimes competes with land used for livelihoods, households and communities. Recognizing the concerns of local people and the risks to our business, we explore alternatives to minimize disturbances and implement measures to protect human rights and cultural heritage in every region where we wish to mine.

Resettlement – When it became clear that the development of Constancia would require the displacement of 36 families from Chilloroya, we established a resettlement negotiation process that adhered to international standards for fairness and transparency (including the IFC performance standards), and committed to providing equal or better housing with improvements like better access to water and roads. The guiding principle for the process was collaboration – with community leaders and government authorities as well as affected individuals.

All but two of the resettlements were completed in 2014. As part of our agreements, we have continued to help the affected families get settled and will do so until 2016. Agreements with the two remaining families were reached in 2015 and they have relocated.

Small-scale mining – Small-scale, informal mining occurs in the Pampacancha area of our Constancia mineral claims. Hudbay Peru and the community implemented a five-year agreement that allows mining by a community enterprise, provided that it is restricted to the one area and is brought into legal compliance. The agreement, which helped formalize the activity there and reduce the risk of conflict, expired in June 2015 and we have begun negotiations to renew it.

Cultural heritage sites – Peru is a country rich in archeological heritage. Before construction started, we conducted a study to find any archeological sites on the property and obtained a Certificate of Non-Existence of Archeological Remains. The site has an archeological monitoring plan (AMP) to preserve cultural heritage and protect any archeological artifacts that may be found. As part of the plan, we have marked protected areas, have erected signage and continue to recover new artifacts. We also hold weekly cultural heritage and awareness training for project workers and community members. The AMP is regularly audited by the Ministry of Culture and all of our activities to date have received government approval.

The Rosemont Environmental Impact Statement (EIS) recognizes the potential impact of mine operations on historic properties and traditional uses and perceptions of the land for the many communities who have used it over the past centuries. Ancestral human remains and sacred sites are known to exist in the project area, as are traditional resource collecting areas. The USDA Forest Service developed a historical properties treatment plan in co-operation with the tribes, the state historic preservation office and Rosemont. The plan is aimed at preserving cultural resources by training work crews on identifying potential cultural artifacts and the steps to follow to protect them. Rosemont, in co-operation with the USDA Forest Service, has developed a cultural awareness training video which will be used to train employees and contractors about the requirements at cultural sites.