Unprecedented Agreement between Communities and Mining Company in Peru

Posted: 20 January 2005

by Elisa Maturana and Chris Hufstader

Dialogue process fosters corporate commitment to respect communities; first ever such agreement in Peru

On December 21st, 2004, representatives of communities near the Tintaya Copper mine in Cusco, Peru, signed an unprecedented agreement with the BHP-Billiton mining company, culminating two years of dialogue and negotiations.

In addition to responding to long-standing complaints of unjust land seizures and human rights violations, the mining corporation also committed to seeking the consent of communities before undertaking any additional mining activities that will affect people living near the mine. This is one of the first times a mining company has formally committed to respecting this emerging community right of “free, prior, and informed consent.” It is also thought to be the first comprehensive agreement in Peru negotiated between communities and a major mine operation.

The agreement covers the most important grievances brought forward by communities, especially compensation for lands expropriated for the mine, long-term community development and the creation of a development fund, environmental protections, and recognition of prior human rights violations in the communities.

Regarding land, one of the most contentious issues, the mining company will transfer an equal or greater amount of land previously lost due to mining operations to the five communities that participate in the dialogue process. This will amount to approximately 7,000 hectares (17,300 acres). The communities will also receive other forms of assistance, including access roads to the lands, homes with water and latrines, seeds for pastures, materials for fences, and technical assistance to improve their livestock for a period of two to three years in order to help re-establish farming and animal raising.

The agreement was reached by members of the Mesa de Diálogo de Tintaya (Tintaya Dialogue Roundtable), a negotiating body supported by Oxfam America and its Peruvian partners, CooperAcción and CORECAMI Cusco. The National Coordinator of Communities Affected by Mining (CONACAMI) is also involved in monitoring the terms of the agreement. Oxfam Australia helped start the dialogue process and intervened on behalf of the communities in early negotiations at BHP-Billiton’s headquarters in Australia.

The members of the Mesa de Diálogo acknowledged in the agreement the importance of sustainable, long-term development for the communities, saying they have to pursue it in “their own rhythm of change, according to their own vision and development program, and in keeping with their decision-making processes.” The development fund will support projects prioritized by the communities, and the mining company will make contributions to the fund. There will be a search for other national and international donors willing to support development projects designed to reduce poverty and improve the living conditions of the 600 families in the five communities.

During the negotiations, a special Human Rights Commission investigated a number of human rights violations. The mining corporation agreed to respond to the findings of the commission and to a report by the Legal Defense Institute.

The fulfillment of the Tintaya agreement will directly benefit approximately 3,200 people--of whom 50.2% are women--and indirectly benefit more than 64,400 inhabitants of Espinar Province. Oxfam Australia’s Mining Ombudsman Office will monitor compliance with the agreement.