Glencore (formerly Xstrata) acquired the Tintaya operation in southern Peru from BHP Billiton in 2006 and the mine was expected to close at the end of 2012. From the time of our acquisition, our teams have worked to find ways to extend and expand the operation. In 2010, the Board approved an investment of US$1.47 billion to develop the Antapaccay deposit, located approximately 10 kilometres from Tintaya. To prepare for the expanded operation and ensure local people could participate in the employment it generates to the greatest extent possible, Tintaya-Antapaccay developed a programme to provide young people in the Espinar province with the knowledge and skills necessary to gain employment in a region where lack of education and training opportunities has led to high unemployment. The programme started in August 2009 and training focuses on the trades required by the Antapaccay project, including masonry, hospitality, concentrator plant operations and heavy equipment maintenance. To date, around 104 graduates of the programme have been employed in full-time positions with the company and a further 160 young men and women are currently engaged in training before seeking employment with Glencore or the contractor firms we use or starting their own local businesses.

Our investment in Tintaya-Antapaccay will enable the ongoing employment of around 1,400 people in our mining operation. Currently one third of all professional roles are recruited from local communities. In addition, 100% of the non-skilled labour requirement for the construction phase of the Antapaccay expansion project has been recruited from local communities providing employment opportunities for a further 1,500 people.