Newmont Mining has outlined a number of community investment programs – developed in conjunction with local communities – that have been implemented or are under development in the Conga project’s area of influence in Peru. The project has suffered from demonstrations and attacks by anti-mining groups. The programs, which are in addition to the numerous social investments Yanacocha has made over the last two decades, include efforts to advance health and education, critical infrastructure and economic development in Peru’s Cajamarca region. Implementation of the programs began four years ago and would continue over the life of the proposed mine. Details regarding the social investments can be found in a fact sheet released by the company.
In addition to community investment programs, Conga is expected to generate more than $2 billion in taxes over the life of the operation, half of which would be directed to the Cajamarca region through the mining canon. And while the project would replace four lagoons with four engineered reservoirs, downstream users would benefit from a reliable, year-round water supply, something they don’t currently have due to the lagoons not continuously overflowing into the natural streams during the dry season. The reservoirs would increase existing water storage capacity from 1.4 million m3 to 3.2 million m3, providing water to downstream users 12 months a year.
“Conga’s community investment programs were designed by the local communities to address long-standing needs that they themselves identified as issues,” said Richard O’Brien, Newmont’s President and Chief Executive Officer. “Although many of these programs are still in their early stages, we’ve already seen tangible results including reductions in malnutrition, school drop-out rates and grade repetition. After the Conga project is built and starts generating revenues, we expect to see even greater improvements in community health, education, nutrition, infrastructure and economic development.”
To date, Conga’s community investment programs have resulted in:
- An 8% decline in malnutrition (over four years since the program began) in children younger than 5 years
- Livestock production increasing to 5 t/ha, up from 1 t/ha
- Native potato production increasing to 11 t/ha, up from 5 t/ha
- 400 properly ventilated stoves built in homes to reduce indoor air pollution, a major contributor to childhood respiratory problems
- 26 modern irrigation systems built to support Aguaymanto farmers.
In 2008, the Conga Project Team, in co-operation with the Asociacion Los Andes de Cajamarca, engaged 32 of the project’s neighboring communities to identify opportunities for sustainable local development. In 2009, Community Development Committees (CODECOs), comprising and led by local citizens, created the 2015 Community Vision, which set targets for improvements in social, economic and community development.
In addition to the social, economic and infrastructure benefits expected from tax revenues, Conga’s initial social investment plans that will be implemented once the project is developed, include:
$5 million to improve production and incomes of rural farmers
More than $500,000 for the construction of 15 classrooms.
Conga’s Environmental Impact Assessment has already undergone extensive reviews by 12 government agencies and was approved by the Ministry of Energy and Mines in 2010 following a three-year, public EIA process. The environmental and social studies in Conga’s EIA spanned up to 13 years and the public engagement process included 13,000 people from the region. The EIA process was transparent and open to anyone who wanted to participate, provide input or raise issues. Conga’s reservoirs would more than double the current water storage capacity of the four lakes in question from 1.4 million m3 to 3.2 million m3 and provide a reliable, year-round water supply to downstream users, something they don’t currently have as a result of the dry season.