Newmont Mining Corp. / Peru. In the february 2006 Innovative Resources Management Inc. / Washington, DC, published a quite interesting study with the focus on Critical Social Risks of Yanacocha.
According to this paper the most Critical Social Risks are:
- Mercury Spill: (…) MYSA’s poor response to the June 2000 mercury spill turned into what has been called an “environmental, health, and public relations nightmare” for MYSA (…) In 2002, 1,100 villagers sued Newmont in a US court, with the first trial likely by early 2007.
- Inadequate Environmental Impact Mitigation:(…) Stratus (…) stated that “long-term use of water from locations where standards areexceeded could be problematic. MYSA focused on the lack of imminent danger, while residents focused on long term impacts.
- Over-reliance on Poorly Conceptualized CSR: MYSA has provided a variety of CSR (corporate social responsibility) style benefits to local communities. (…) While MYSA claims to have spent some $42 million on social development, (…) the majority of this may have been spent on roads for the mine itself.
- Allegations of Corruption: (…) a videotape revealed Vladimiro Montesinos, President Fujimori’s national security advisor, pressuring the swing judge.77 Another tape showed Montesinos telling a Newmont official that he would help Newmont win the case.
- Inadequate Communication with Local Stakeholders and Poor Participation Strategies: (…) FEROCAFENOP extensively criticized MYSA’s lack of appropriate consultation with local communities.
The report stress that:
Inadequate attention paid to social risks translates to millions of dollars in unforeseen corporate costs each year.
Here you can download the full Yanacocha Social Risks Case Study Feb 2006.