ASK GLENCORE

Peru

In Peru, our assets include copper and zinc operations, as well as port and storage facilities. Here is how we work to support the needs of host communities. 

What do you do in Peru?

We have a number of assets in Peru - the Antapaccay copper operation in Espinar province; Los Quenuales, a zinc and lead producer; the Perubar port and storage facilities; a 33.75% interest in Antamina, a copper–zinc mine and a 23% interest in Volcan – a producer of zinc, lead and silver. 
 
Together, our operations in Peru employ around 7,000 people. In 2017, we paid $143m in taxes and royalties to government in Peru as a result of our operations.

What do you do in Espinar province?

In Espinar, we own and operate the Antapaccay copper mine, which we acquired in 2013 through the merger with Xstrata.

Xstrata had operated the Tintaya copper asset since 2006. By 2012–13, Tintaya had reached the end of its life, and operations began at Antapaccay – using some of Tintaya’s infrastructure. 

The mine at Antapaccay has extended production at our facilities in Espinar for at least another 20 years – providing continued work for thousands of employees and contractors. 

How are you managing the closure of the Tintaya operation?

We have put in place a closure programme at Tintaya. This includes a forestation plan, and as of 2017, seedlings have been planted in 144 hectares of land.

How do you support sustainable development in Peru?

By investing in communities in Espinar and at Los Quenuales, we aim to enhance social and economic development – avoiding dependency on our operations over the long term.

Under a framework agreement established in 2003 between Tintaya and the regional authorities in Espinar, for example, Antapaccay contributes 3% of profit before tax to a community fund. These funds are invested to promote the sustainable development of Espinar through public healthcare, education, agriculture and infrastructure projects. These projects (over 1000 social projects from 2013–16) help the community find incomes outside the mine, and have resulted in major improvements to the ways in which farm animals are brought up and treated. 

How do you support community health?

In Espinar, we worked with local and national government to build and equip a hospital, at a cost of nearly $3m. This opened in 2007.

At Los Quenuales, we support a project to target malnutrition in children and anaemia in pregnant women. More than 2,400 families have taken part. A similar project at our Perubar operation has seen a reduction in malnutrition from 44% to 26% since 2016.

How do you support community education?

We support projects including educational infrastructure, scholarships, and training for young people.

In Espinar, we support the Centre of Specialised Educational Resources, which educates more than 1,700 students per year. It has also supported more than 800 parents, and provided training for more than 500 teachers.

In 2017, we supported a “school on wheels” project in Espinar. This adapted bus includes an interactive whiteboard, wireless internet and HD cameras – facilities previously out of reach to local communities.

Los Quenuales, meanwhile, began a project in 2012 that aimed to improve academic performance in regional kindergarten or nursery schools. The project directly benefits more than 100 students each year. Since 2010, our Perubar operation has also provided training for primary school teachers and for parents, to help them better support their children. To date, more than 500 students benefitted, strengthening their abilities in mathematics, reading and comprehension.

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How do you support community agriculture?

We support a range of agricultural projects, covering schemes from mechanisation to training and technical advice.

Working via our framework agreement in Espinar, we support a not-for-profit dairy (D’Altura) which buys more than 17,000 litres of milk per day from 640 families; and a plant which buys wool at fair rates from more than 1,500 farmers. 

How do you support infrastructure?

Through our framework agreement in Espinar, we have supported physical infrastructure such as roads, water plants and sports facilities. We have developed a 5.9km truck trail at Jayuni, near the Tintaya Marquiri community, supported the construction of a 52 metre long bridge at Kachachi, part of the Alto Huarca community, and supported improved sanitation at schools in 12 local communities.

How are you improving access to drinking water for local communities?

Antapaccay has invested and upgraded the water treatment plant for the communities in Espinar. The duration of access to drinking water has been increased fivefold, from 2 hours a day to 10 hours a day, and Antapaccay is working with the government to make this 24 hours a day.

How do you manage water at Antapaccay?

Since 2011, Antapaccay’s Environmental Management System has held  the ISO 14001 certification and has received numerous awards from the Peruvian Ministry of Environment for its best practice environmental (including water) performance, most recently in 2016.

Environmental monitoring takes place on a regular basis by internal experts as well as by the governmental Agency for Assessment and Environmental Control (OEFA) and the National Water Authority (ANA). External and internal audits are regularly undertaken to evaluate the site’s environmental impact and performance.  The local communities are invited to monitor these audits, and can review the water testing and results.  
 

Have independent water studies been done?

There have been several independent studies on the presence of heavy metals in the waterways, soils and inhabitants of Antapaccay’s catchment area – an issue of concern to local communities. 

The reports from 2013 confirm that the presence of metals originates from natural sources due to the geological characteristics of Espinar, and not due to any impact of our mining operations. Notwithstanding the presence of heavy metals in the population in the region, the results were within permissible values. 

That said, many communities in Espinar do not have sufficient access to drinkable water. We recognise that access to clean water is a problem, and we are helping to the local authorities inresolving it. 
 

How do you support security-related human rights?

All of our operations apply Glencore’s Human Rights policy. As part of this, we require that security contractors comply with our policies and standards – including the Voluntary Principles on Security and Human Rights. 

In 2017, 150 security contractors received training at our Antapaccay operation – on subjects such as the Voluntary Principles, management of social conflict, and personal conduct. 

What can people do if they have grievances?

Antapaccay operates a grievance mechanism to receive and investigate complaints from the local communities and other stakeholders. 

Antapaccay also has a community relations department and an office in Espinar to work directly with the community. The purpose is to have a clear communication channel with local communities to help them develop projects, assist them in understanding the mine processes (hosts mine visits). Additionally, at Los Quenuales and Perubar, the community relations department manage local offices for community grievances, working directly with the community, as we do at Antapaccay.
 

How do you engage with unions?

At Antapaccay, we have been working with unionised workers for more than 17 years.  Currently there are three established unions and union membership represents approximately 50% of the work force at the operation.  We recognise that our relationship with the unions and its members is an important component to building a long-lasting business for Antapaccay. Antapaccay works hard to maintain good working relationship with the unions representing its workforce, it currently has valid collective agreements with the three unions, for a 3 year period (2016 – 2019)