A guide to leading practice sustainable development in mining
A guide to leading practice sustainable development in mining
A guide to leading practice sustainable development in mining
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MINE: Pier<strong>in</strong>a M<strong>in</strong>e<br />
LOCATION: District of Independencia and Jangas, Prov<strong>in</strong>ce of Huaraz,<br />
ANCASH, PERU, SOUTH AMERICA (pop. 67000).<br />
BRIEF DESCRIPTION: The Pier<strong>in</strong>a m<strong>in</strong>e is located <strong>in</strong> the Andean Cordillera <strong>in</strong><br />
the Department of Ancash <strong>in</strong> north-central Peru, approximately 10 kilometres<br />
northwest of the city of Huaraz, at an altitude of approximately 4,100 metres.<br />
The most important areas of <strong>in</strong>fluence are the districts of Independencia and<br />
Huaraz.<br />
Pier<strong>in</strong>a is an open-pit m<strong>in</strong>e of gold (period of operation 1996 – 2010), truckand-loader<br />
operation. Ore is crushed and transported through an overland<br />
conveyor <strong>to</strong> the leach pad area. Run-of-m<strong>in</strong>e ore is trucked directly <strong>to</strong> a classic<br />
valley-fill type of leach pad.<br />
In 2009, Pier<strong>in</strong>a produced 271,000 ounces of gold at <strong>to</strong>tal cash costs of $400<br />
per ounce. Proven and probable m<strong>in</strong>eral reserves as of December 31, 2009 are<br />
estimated at 648,000 ounces of gold2. Accumulated <strong>in</strong>vestment: US$ 850<br />
million.<br />
AREA OF LEADING PRACTICE: Poverty reduction; human <strong>development</strong><br />
HANDBOOK(S) REFERENCE: Community Engagement<br />
DESCRIPTION OF CASE OF STUDY:<br />
Peru is a significant m<strong>in</strong><strong>in</strong>g country. Over the past two decades some<br />
Peruvian m<strong>in</strong><strong>in</strong>g regions have experienced important social and economic<br />
transformations, particularly <strong>in</strong> comparison <strong>to</strong> non-m<strong>in</strong><strong>in</strong>g regions. This<br />
analysis seeks <strong>to</strong> evaluate the contribution made by m<strong>in</strong><strong>in</strong>g <strong>development</strong> <strong>to</strong><br />
economic and social progress <strong>in</strong> the districts of Jangas and Independencia.<br />
Pier<strong>in</strong>a M<strong>in</strong>e, operated by Barrick, has a complete program of community<br />
<strong>development</strong>. From the first day of operation the policies of the Company had<br />
been <strong>to</strong> ensur<strong>in</strong>g that the benefits of m<strong>in</strong><strong>in</strong>g are shared with communities.<br />
In collaboration with their partners, Pier<strong>in</strong>a M<strong>in</strong>e had been support<strong>in</strong>g the<br />
improvement of access <strong>to</strong> clean water, health care, hous<strong>in</strong>g and education for<br />
people <strong>in</strong> the communities <strong>in</strong> which it operates. In this manner the company<br />
contributes positively <strong>to</strong> competitiveness, l<strong>in</strong>kages, creates a stable bus<strong>in</strong>ess<br />
environment, reta<strong>in</strong>s a skilled base of employees and provides essential<br />
services <strong>to</strong> community.<br />
This case study illustrates the key <strong>in</strong>dica<strong>to</strong>rs of poverty reduction with<strong>in</strong> the<br />
districts of Independencia and Jangas (area of <strong>in</strong>fluence). These <strong>in</strong>dica<strong>to</strong>rs<br />
are the best manner <strong>to</strong> illustrate the impact of various policies, operational<br />
activities, taxes, donations, and the new capacities and the new social capital<br />
of the community <strong>in</strong> the area of <strong>in</strong>fluence, and the positive relationship<br />
between the m<strong>in</strong><strong>in</strong>g operation and the community.<br />
96 LEADING PRACTICE SUSTAINABLE DEVELOPMENT PROGRAM FOR THE MINING INDUSTRY