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The Rise in Conflict Associated

With Mining: What Lies Beneath?


Tony Andrews &
Bernarda Elizalde
Principals & Co-Founders
Centre for Responsible Mineral Development

December 13, 2016


Presentation at Ryerson University’s Institute for the Study of
Corporate Social Responsibility
Toronto, Ontario

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Centre for Responsible
Mineral Development

1
CSR
A term that has
become too
burdened and overused?

The Junk Lady


From the movie ‘Labyrinth’

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Responsible Mineral
Development & CSR
CSR

RESPONSIBLE
MINERAL
DEVELOPMENT

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The Rise in Conflict Associated With Mining:
What Lies Beneath?

CONFLICT

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Ian Thomson
Ian Thomson
OCG Philippe Le Billon
OCG Philippe
UBC Le Billon David Reyes
UBC David Reyes
Triple R Alliance
Triple R Alliance
CONFLICT PROJECT TEAM PROJECT ASSISTANTS
Tony Andrews, RMD Inc. Marta Conde, Literature Review
Bernarda Elizalde, RMD Inc. Jonathan Gamu , Literature Review
Philippe Le Billon, University of British Columbia Maria Jose Gonzales, Peru Field Case Study
Chang Hoon Oh, Simon Fraser University Héctor Córdova, Bolivia Field Case Study
David Reyes, Triple R Alliance Rames Abhukara , Madagascar Field Case Study
Ian Thomson, Shinglespit Consultants Inc.,

EXTERNAL REVIEW COMMITTEE


Steven Agbo. Senior Social Scientist, Minerals Commission of Ghana
Javier Caravedo, Director Ejecutivo, ProDialogo, Lima, Peru
Rolando Luque, Deputy for Prevention of Social Conflicts and Governance, Defensoria del Pueblo, Lima Peru
Kathryn McPhail, Independent Consultant, formerly Senior Director, International Council for Mining and Metals, Singapore
Glenn Nolan, Vice President, Government Relations, Noront Resources, Former Chief, Missanabie First Nation, Ontario,
Canada
Margaret Wachenfeld, Director of Research and Legal Affairs, Institute for Human Rights and Business, London, UK
Kernaghan Webb, Associate Professor & Director of the Institute for the Study of Corporate Social Responsibility, Department
of Law & Business, Ryerson University, Toronto, Canada
Luc Zandvliet, Founder and Director, Triple R Alliance, Consulting Group, Ontario, Canada
Emmanuel D. Tehindrazanarivelo, Chair, Department of Ethics and Systematic Theology, Ambatonakanga Faculty of Theology,
Madagascar

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Ian Thomson Philippe Le Billon
Shinglespit UBC
Consultants David Reyes
Triple R Alliance
Bernarda Elizalde
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Chang Hoon Oh
SFU
Ian Thomson
Ian Thomson
OCG Philippe Le Billon
OCG Philippe
UBC Le Billon David Reyes
UBC David Reyes
Triple R Alliance
Triple R Alliance
CONFLICT PROJECT TEAM PROJECT ASSISTANTS
Tony Andrews, RMD Inc. Marta Conde, Literature Review
Bernarda Elizalde, RMD Inc. Jonathan Gamu , Literature Review
Philippe Le Billon, University of British Columbia Maria Jose Gonzales, Peru Field Case Study
Chang Hoon Oh, Simon Fraser University Héctor Córdova, Bolivia Field Case Study
David Reyes, Triple R Alliance Rames Abhukara , Madagascar Field Case Study
Ian Thomson, Shinglespit Consultants Inc.,

EXTERNAL REVIEW COMMITTEE


Steven Agbo. Senior Social Scientist, Minerals Commission of Ghana
Javier Caravedo, Director Ejecutivo, ProDialogo, Lima, Peru
Rolando Luque, Deputy for Prevention of Social Conflicts and Governance, Defensoria del Pueblo, Lima Peru
Kathryn McPhail, Independent Consultant, formerly Senior Director, International Council for Mining and Metals, Singapore
Glenn Nolan, Vice President, Government Relations, Noront Resources, Former Chief, Missanabie First Nation, Ontario,
Canada
Margaret Wachenfeld, Director of Research and Legal Affairs, Institute for Human Rights and Business, London, UK
Kernaghan Webb, Associate Professor & Director of the Institute for the Study of Corporate Social Responsibility, Department
of Law & Business, Ryerson University, Toronto, Canada
Luc Zandvliet, Founder and Director, Triple R Alliance, Consulting Group, Ontario, Canada
Emmanuel D. Tehindrazanarivelo, Chair, Department of Ethics and Systematic Theology, Ambatonakanga Faculty of Theology,
Madagascar

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Presentation Structure

1. Project Rationale, Methodology, Approach


2. Conceptual Models
3. Results From the Individual Study Components
4. Summary of Observations & Conclusions
5. Latin American Case Studies

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100

90
Source: International Council for
Mining & Metals (ICMM), 2015

CONFLICTS 80

INCIDENTS 70

PER YEAR 60

50

2002-2013 40

30

20

10

0
2,002 2,003 2,004 2,005 2,006 2,007 2,008 2,009 2,010 2,011 2,012 2,013

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Study Purpose
To delve beneath the surface manifestations of
conflict in order to develop a deeper
understanding of:
 Root causes, systems and pathways
 What is driving the dramatic increase
 The players involved; roles & responsibilities
 Evolutionary trends over past 20 years

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Study Premises

Conflict is:
 A normal aspect of the relationship between
mining companies and stakeholders
 The result of the interplay of multiple actors
 A process with a history prior to outbreak
 A process with potential for both positive &
negative outcomes
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Expected Outcomes
1. Improved understanding: for example
a) Conflict as a process including its determinants, the
players involved & their roles & responsibilities
b) Conflict as an inhibitor and as an enabler

2. Improved policies, practices, tools for conflict


prevention, mitigation and management

3. Development of a continuously updated


database on mining and conflict case studies
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DEFINING CONFLICT FOR THIS STUDY

Focus
Community-level social conflict associated
with the large scale mining sector
Definition of Conflict
Not Including
The interaction of two or more
Conflict Minerals, ASM, Labor-Related Conflict
parties with perceived incompatible
goals, who engage each other
Conflict Definition
through a range of practices including
1. A broad definition including both negative
dialogue, persuasion, negotiation,
and positive outcomes
arbitration, legal action, protest,
intimidation and physical violence.
2. Lessons can be learned from conflict cases
a) With NEGATIVE outcomes
b) With POSITIVE outcomes
c) That simply avoided conflict
STUDY APPROACH

1. Literature Review
2. Quantitative Analysis
3. Field Investigations (18)

Phase 1
 Literature Review
 Quantitative Analysis
(Compiling, Upgrading)
 4 Field Case Studies
Phase 2
 Quantitative Analysis
(2002-2013)
 14 Case Studies
Presentation Structure
1. Project Rationale, Methodology, Approach
2. Conceptual Models
3. Results From the 3 Individual Study Components
 Literature Review
 Field Case Studies
4. Summary of Observations & Conclusions
5. Latin American Case Studies

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CONCEPTUAL FRAMEWORK

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CONCEPTUAL FRAMEWORK

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CONFLICT CONTINUUM

Conflict
Outbreak
Conflict Drivers
CONFLICT INTENSITY

Field of Contextual Factors


CUMULATIVE

Field of Structural Factors

TIME Trigger

Creation of Rising Conflict


Enabling Tensions Outbreak
Environment
NORMATIVE MODEL FOR MINING RELATED CONFLICT
At the Community – Company Interface
RESISTANCE High COEXISTENCE

High Influence
High Protection
Interests are Protected
Low High

Low influence Low influence


Low Protection High Protection

Low

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NORMATIVE MODEL FOR MINING RELATED CONFLICT
At the Community – Company Interface
RESISTANCE High COEXISTENCE

Dialogue
Collaboration
Interests are Protected
Low High

Passive Passive
Aggression Acceptance

Low

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Presentation Structure
1. Project Rationale, Methodology, Approach
2. Conceptual Models
3. Observations From the 3 Individual Study
Components
 Literature Review
 Field Case Studies
4. Observations & Conclusions
5. Latin American Case Study Detail

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Literature Review
303 Publications Reviewed

80% academia Seek to explain conflict & with


frequent focus on voices &
11% CSOs Interests of the communities

5% Industry Good practice guidance & advice


to extractive companies on how
to avoid conflict
4% Government

Focus on Latin America compared to Africa, SE Asia other parts of the world

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Literature Review
Strengths Weaknesses

• Majority based on case • Frequent lack of clearly


study analysis defined variables
• Moderate detail over large • Often presented from
number of cases perspective and interests of
communities & NGOs
• Cover large historical and
geographic scales • Paucity of studies from
industry

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Literature Review Observations

1. Rise in conflict coincides with global commodity


boom
2. Rise in conflict correlates with broader rising trend in
large scale protests globally
3. Conflict determinants are broadly similar across case
studies and confirmed the rationale for classifying
them into structural factors, contextual factors and
conflict drivers

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Comparison of Trends in Mining Sector Activity
And Conflict Incidents (2002-2013)

Conflict Incidents by Year Annual Exploration Expenditures


100 25
Source: SNL Metals
90
Source: International Council for Economics Group, 2014
80 Mining and Metals (ICMM), 2015 20

70

60 15

$ Billions
50

40 10

30

20 5

10

0 0

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Literature Review Observations

1. Rise in conflict coincides with global commodity


boom
2. Rise in conflict correlates with broader rising trend in
large scale protests globally
3. Conflict determinants are broadly similar across case
studies and confirmed the rationale for classifying
them into structural factors, contextual factors and
conflict drivers

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INCREASING WORLD PROTEST
INTENSITY 2003 – 2013

Rising Social Instability


DISEMPOWERMENT, INEQUALITY, UNEMPLOYMENT,
AUSTERITY MEASURES, CUT-BACKS ON SOCIAL
SERVICES, POLITICAL UPHEAVAL (ARAB SPRING – 2011)
RISE OF TERRORISM

Occupy Together Protest, 2011

Cold War & Anti-Apartheid Tensions Return of Political Protest Activity

Relative Calm

Source: The Global Risks Report 2016, World Economic Forum


SHARE OF COUNTRIES (UN MEMBERS) PARTICIPATING IN CONFLICT, 1946-2012
Source: PRIO, The Peace Research Institute, Oslo
NUMBER OF REPORTED TERROTIST EVENTS BY YEAR, 1970-2013
Source: PRIO
Literature Review Observations

1. Rise in conflict coincides with global commodity


boom
2. Rise in conflict correlates with broader rising trend in
large scale protests globally
3. Conflict determinants are broadly similar across case
studies and confirmed the rationale for classifying
them into structural factors, contextual factors and
conflict drivers

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Conflict Determinants
Structural Factors
• Global commodity boom: investment in politically risky, under-
regulated countries
• Rising social instability since 2003
• History of colonialism, authoritarian rule, neoliberalism
Contextual Factors
• Ill-designed and/or poorly implemented mineral development
strategies
• Weak governance capacity, rule of law, corruption, lack of
transparency
Conflict Drivers
• Inconsistent corporate social responsibility practices
• Community willingness to use conflict as a negotiating tool

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Presentation Structure
1. Project Rationale, Methodology, Approach
2. Conceptual Models
3. Observations From the 3 Individual Study
Components
 Literature Review
 Field Case Studies
4. Observations & Conclusions
5. Latin American Case Study Detail

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Peru
Haquira, Cu Project Tanzania
First Quantum
Advanced Exploration
Tanzania
Las Bambas, Cu Mine Bulyanhulu, Au Mine
MMG, Open Pit Acacia, Underground
Construction Operating 20 years
Bolivia Madagascar
San Cristobal, Ag, Pb, Zn Mine Ambatovy, Ni Mine
Sumitomo, Open Pit Sherritt Intn, Open Pit
Operating 9 years Operating 4 years
Haquira
Open Pit

Concentrator

1.5 kms

First Quantum Camp

Haquira
Peru

Las Bambas-Haquira

Chile

San Cristobal

Argentina
Salar de Uyuni

San Cristobal

50 kms
Kenya

DRC

Zambia

Mozambique
Source: PRIO, The Peace Research Institute, Oslo, 2015
FIELD CASE STUDIES
COMPARISON OF GLOBAL INDICES (2015)

Poverty: Poverty head count ratio of $1.90/day (2011PPP) (% population); World Bank, 2015
Human Development: Ranking out of 188 countries, UNDP, 2015
Governance Effectiveness, Political Stability, Rule of Law, Corruption Control: Percentile Score out of
100, World Bank, 2015
FIELD CASE
STUDY APPROACH

Field Team

Bernarda Elizalde: Latin American


Field Lead

David Reyes: African Field Lead

Ian Thomson: Field Coordinator

Local Field Specialists Field Investigation


Initial desk top research
On-site interviews with all stakeholders
90 Man-days in the field

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Peru: Haquira-Las Bambas Bolivia: San Cristobal

Structural Factors Structural Factors


1. Colonialism (1492-1810) 1. Colonialism (1492-1810)
2. Neoliberalism 2. Neoliberalism
3. Poverty 3. Poverty
4. Corruption 4. Corruption
5. Partial democracy 5. Partial democracy
6. Shining Path Activity 6. Mining Cooperatives

Tanzania: Bulyanhulu Madagascar: Ambatovy

Structural Factors Structural Factors


1. Colonialism (1881-1924) 1. Colonialism (1881-1924)
2. Neoliberalism 2. Neoliberalism
3. Poverty* 3. Poverty**
4. Corruption 4. Corruption*
5. Anocracy 5. Anocracy
6. Tribal System 6. Poor Governance
Peru: Haquira-Las Bambas Bolivia: San Cristobal
Contextual Factors Contextual Factors

1. Lack of strategic approach to mineral 1. Government and society better


development & preparation for FDI prepared for FDI & LSM

2. Central govt control & decision-making; 2. Decentralization well-designed &


poorly designed decentralization successfully implemented

3. Govt. policies designed in favor of mining 3. Balanced approach by central govt


companies as opposed to citizens to the governance of mineral development

4. Ineffective policies and measures for 4. Local communities well-prepared for &
conflict prevention supportive of mineral development

Tanzania: Bulyanhulu Madagascar: Ambatovy


Contextual Factors Contextual Factors
1. Lack of strategic approach to mineral 1. Lack of strategic approach to mineral
development & preparation for FDI development & preparation for FDI
2. Central govt control & decision-making; 2. Central govt control & decision-making;
poorly designed decentralization poorly designed decentralization
3. Govt. policies designed in favor of mining 3. Govt. policies designed in favor of mining
companies as opposed to citizens companies as opposed to citizens
4. Government encourages ASM and informs 4. Weak governance; political instability
Tanzanians that they own the resources
5. Oppression of people by army &
5. Oppression of people by police & government government
Peru: Haquira-Las Bambas Bolivia: San Cristobal
Conflict Drivers Conflict Inhibitors
Government
1. Lack of coordination among central govt 1. Central govt helps to resolve 2011 crisis through
agencies dealing with conflict prevention dialogue tables; facilitates resolution, new
2. Poorly designed dialogue tables agreement, reestablishment of good relations
3. Unresolved land use & ownership issues
Communities 2. Collective decision-making, trust among
4. Deep mistrust of government communities
5. Fragmented, competition over land rights 3. Robust system of accountability, discipline
6. Asymmetrical distribution of benefits 4. Willing to protest but value relationship with
7. Use conflict as a tactic in negotiations company
Company
8. Change in ownership & mgmt approach 4. Committed to empowerment; shared decisions
9. Selective engagement with communities 5. Outstanding community relations team
10. Flawed, selective decision-making process 6. Negotiated company-community agreements

Tanzania: Bulyanhulu Madagascar: Ambatovy


Conflict Drivers Conflict Drivers
1. Central govt appointment of local authorities 1. Authoritarian govt + role of the military cause
2. ASM evicted to make way for LSM fear or reprisals to organized opposition
3. Company well-being a priority over communities 2. Mine construction coincides with military coup
4. Passive, non-confrontational, but underlying 3. Malagasy patient, tolerant, non-violent but
resentment grows; ”they took our gold” frustration is building
5. Dependency on company; dissatisfaction with 4. Don’t trust govt & deeply dependent on company
benefits- us vs them attitude prevails 5. Feel that commitments by company have not
6. Passive aggressive; uncooperative; subversive been met + frustration with revenue distribution
7. Perceived as complicit with ASM eviction 6. Allows Catholic Church to assume advocacy role
8. Frequent turnovers of mine managers-13/17 yrs 7. Change in management during construction
9 Inconsistent approach to workers & communities 8. Transactional approach to community relations
Peru: Haquira-Las Bambas Bolivia: San Cristobal

Conflict Triggers (Outbreak) Conflict Triggers (Outbreak)

• Bilateral decision between • Communities believe that


company and central govt that company not living up to
left out the communities Its commitments (2000, 2011)

Tanzania: Bulyanhulu Madagascar: Ambatovy

Conflict Triggers Conflict Triggers

No conflict outbreak yet. No conflict outbreak yet but high


Long-standing resentment level of dependency on company and
and passive aggression but heightened expectations fuel a
conflict has been contained significant increase in conflict
potential. So far has been contained
HAQUIRA-LAS BAMBAS Players
Host Government, Company,
STRUCTURAL FACTORS Communities

Colonialism
Neo-liberalism
Partial Democratization CONTEXTUAL FACTORS
Shining Path
No Mineral Strategy
Focus on FDI
Policies Favoring Companies
Failed Decentralization
CONFLICT DRIVERS Income disparity: Urban vs Rural
Central govt decision-making Lack of Trust in Government
Lack of Inter-agency coordination
Ineffective Conflict Prevention
Unresolved Land Use & Ownership Issues
Communities Fragmented, Competitive,
TRIGGERS
Prone to Using Conflict
Selective, partial Consultation Govt-company bilateral decision
Asymmetrical benefits distribution to change key element of mine
design without community
consultation
RESISTANCE High COEXISTENCE

San Cristobal
Las Bambas

MMG Dialogue
Xstrata

Haquira
Collaboration
Interests are Protected
Low High

Passive Ambatovy
Passive
Bulyanhulu

Aggression Acceptance

Low

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Presentation Structure
1. Project Rationale, Methodology, Approach
2. Conceptual Models
3. Observations From the 3 Individual Study
Components
 Literature Review
 Field Case Studies
4. Observations & Conclusions
5. Latin American Case Study Detail

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High Level Observations
1. The rise in conflict associated with mining (2002-2013) is directly linked
to the rise in global mining activity during this time

2. The rise in conflict associated with mining occurred within the context
of a widespread resurgence of social instability and protest intensity
driven by multiple and profound transformations worldwide

3. Organized opposition to mining is rare in Africa compared to Latin


America. This is likely due to:
a) Differences in history of colonialism
b) Anocracy still dominant in Africa vs democracy in Latin America
c) Tribal system characteristic of many African nations

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CONFLICT DETERMINANTS KEY PLAYERS

Formation of Colonial Powers


STRUCTURAL FACTORS National Governments
Enabling
Environment International Institutions
For Conflict
Creation CONTEXTUAL FACTORS Host Governments
or Prevention

Companies
CONFLICT DRIVERS (INHIBITORS) Communities
Host Governments

Company Community
Normative Model
History Attitudes Activism Dialogue Attitudes History
Collaboration
Culture Beliefs Beliefs Culture
Internal Priorities Priorities Internal
Passive Passive
Systems Behaviors Behaviors Systems
Triggers
Aggression Acceptance

Company-Community Interface
www.cirdi.ca

THANK YOU!
Presentation Structure

1. Project Rationale, Methodology, Approach


2. Conceptual Models
3. Observations From the 3 Individual Study
Components
4. Integrated Observations & Conclusions
5. Latin American Case Study Details
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Field Case study: Peru
Haquira – Las Bambas

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The Haquira Project site

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Ccahuanhuire

Workshop to increase local’s negotiation capacities

©Centro de Análisis y Resolución de Conflictos,


Pontificia Universidad Católica del Peru, 2014
Lahuani

RMD CIRDI
Huanacopampa

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Paranani

Collective planting season: Ayni


RMD CIRDI
Haquira

Challhuahuacho

RMD CIRDI
© El Montonero e-newspaper
RMD CIRDI
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Fuerabamba Alta
(relocated community)

Huanacopampa

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Fuerabamba Alta

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Fuerabamba Alta

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Interviewees’ quotes - relationships
Quotes Representantive from:
‘Sometimes there were difficult questions, with no easy Industry
answer, but the fact we were there helped…’
‘Mutual respect cannot be regulated…it is earned’ Industry
‘…Local people protected me from the organized crime. This Industry
alliance wasn’t a written pact, it was a link that needed
constant nourishment’

“…the repercussion of Las Bambas over the Haquira Project is Community member
fear – to have rights breached. Some people fear that the from the area of direct
same situation will be repeated with the Haquira Project”. impact
‘We (the communities) have an individualistic approaches to Community member
negotiate’

RMD CIRDI
Interviewees’ quotes – wealth distribution
“The differences in wealth between
communities that receive benefits from the “…It would help if the mayor
company and those that don’t create envy and would work efficiently with
internal conflicts”. (NGO) community members to plan
and manage the use of those
“Just a handful of communities receive [Canon Minero] resources”.
benefits, but the rest [of the communities] (Community member)
don’t. How can someone hungry see others eat
so much? It is unfair. We all want to receive
benefits”. (Community member) “There is no integral
management of economic
: “…Locally, neoliberal ideas have prevailed resources’ (Peruvian
since colonial times. In the past, communities Ombudsman)
were more united and ensured that all 33
communities receive benefits, not only a
handful of communities. Most communities
receive just leftovers – ‘Those who speak about
equality are called anti-miners and terrorists’”
(The Resistance Committee)
RMD CIRDI
In the political arena - Proposals for
the creation of more districts
In favor Against

Will receive direct benefits from the It wont allow the development of high impact projects (infrastructure
Canon Minero projects that benefit a larger segment of the population), instead the
revenues from the Canon Minero will be distributed in smaller amounts to
the same number of inhabitants divided into more politically divided
locations.

It will empower communities. Each district will have different objectives.

It will be a way to unite communities. It responds to political interests to garner more votes.

It will allow new districts to manage their It is a tactic created to divide communities, get them disorganized and
Canon Minero with more autonomy. weaken their ability of organize.
The creation of new districts will create additional problems with water
distribution.
It won’t be successful because there are land ownership issues between
some communities that need solving.
It will create more conflicts between communities.

It will generate more administrative expenses.

RMD CIRDI
Key stakeholders at the local level
Haquira’s Project’s
staff
Communities
located outside Las Bambas
the area of direct Project staff
impact

Communities in
Small business
the area of direct
people
impact

The resistance
Municipality
committee

RMD CIRDI
Key stakeholders at the regional and
national level
Governor’s office

Peruvian
Presidency of the Ombudsman
Council of Ministers (Defensoría del
- PCM Pueblo) – regional
level

Ministry of
Ministry of Energy
Environment
and Mines (MINEM)
(MINAM)

RMD CIRDI
Field Case study: Bolivia
Minera San Cristobal -

Salar de Uyuni

San Cristobal

RMD CIRDI
A view of the area

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Colcha K

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Culpina K

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Vila - Vila

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Rio Grande

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Levels of Social License
“The company and the
community established a
marriage relationship where
CO- the baby was the mine, so we
OWNERSHIP both had to take care of it as
mother and father. And we
--Trust boundary --
have problems like any
married couple.” (Community
APPROVAL member – San Cristobal)

--------Credibility boundary --------

ACCEPTANCE

----------------Legitimacy boundary ---------------

WITHHOLDING / WITHDRAWAL 89
Source: Thomson and Boutilier, 2011
The Social License to Operate at San
Cristobal Mine
TRUSTED
CREDIBLE
LEGITIMATE

EXPLORATION CONSTRUCTION OPERATION

‘94 ‘95 ‘96 ‘97 ‘98 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08
90
Source: Thomson I., Boutilier R., 2011, The Social License to Operate
San Cristobal

RMD CIRDI
2011 – Conflict situation
• Latent conflict as the company
has some pending matters in
order to comply with the
agreement known as the
Mother Agreement (Acuerdo
Madre).
• What started as a concern for
improved medical attention,
included a cascade of events
that escalated into a conflict
situation consisting of a
prolonged strike and an
eleven-day blockade of the
mine
• Conflict trigger: the death of
Pablo Calcina

RMD CIRDI
As a result of the conflict
• Improved infrastructure for medical attention,
ambulances and improvements to the road
• Community leaders lose their political power
• The union emerges as the voice of the workers in social
matters
• The company-community dynamic is institutionalized
• Vila-Vila gains political power and creates a foundation
for productive projects
• Culpina-K takes further steps - productive projects
• Local communities mourn the days when the
relationship with the company had no third parties
involved
• The company and communities sign a Peace and Harmony
Memorandum of Understanding
RMD CIRDI
Factors that helped in (community-
company) negotiations
• Local community members have a well organized society
– General assembly
– Authorities Council (keep authorities accountable)
– Corregidor (with the authority to ‘correct’ any misbehaviour or lack of
compliance with the community.
• Community relations team
• Compliance with community rules (applicable to everyone without
distinction, including community leader and company staff)
• Community relations team’s commitments very closely monitored by the
General Assembly or the Corregidor
• A shared identity
• MSC’s and community’s mutual learning and understanding
• The negotiation abilities of local communities are strategic and most often
follow the rule of ‘mutual respect’ and ‘equality’
• 90% of MSC’s workforce is local.
www.cirdi.ca

THANK YOU!
ANALYSIS OF 167 INCIDENTS IN 2012 & 2013
CONFLICTS BY REGION (87%) Top 3 Contextual Factors (%)
Benefits asymmetry (12.7)
Policies favoring companies (12.4)
ASIA 17%
LATIN AMERICA Environment (10.9)
(9%) 46% (29%) Top 3 Conflict Drivers
AFRICA 24% Environment (28.1)
(14%) Mexico
Peru Benefits asymmetry (12.2)
Chile
Consultation (10)
Guatemala CONFLICTS BY MINERAL TYPE
Precious Metal Mining (49%)
North America=Energy; Africa=Specialty Minerals

CONFLICTS WITH THE HIGHEST INTENSITY DOMICILES OF COMPANIES INVOLVED


N. AMERICA 9.1%
UK
LATIN AMERICA 7.6%
SOUTH
45.2%
ASIA 57.1% AFRICA 7.6% CANADA
30.3%
AUSTRALIA
7.6%
AFRICA 53.8 % USA
8.6%