Are the residents really at odds with the Peruvian mining project

Tía María? Analysis of a Peruvian mining conflict using

Shannon Entrophy
MORALES DAMASO, KEVY SAHIR. AZORSA GONZALES, EDUARDO GUILLERMO. RIOS QUESÑAY, ANDREE ANDERSON.
,

MUÑOZ HUAMANI, ALEXIS GONZALO

projects due to different conflicts or

Abstract:
problems. [2]
Peruvian mining, in some cases, can cause
social conflicts over environmental issues.
These cause various problems from economic It should be added that according to the
losses, to clashes with the inhabitants. In this
mining competitiveness indicator presented
work, a method based on Shannon entropy
theory was used to understand the elements that in the last PERUMIN 34 we are in 6th place in
caused the population to disagree with the seven countries evaluated in different areas:
project. The case study analyzed occurs in the Geological potential, Tax policy,
province of Islay, department of Arequipa, Infrastructure, Institutions and regulation,
where if the project is approved, this mine will Social Environment. [3]
process copper oxides from the La Tapada and
Tía María deposits. The results of this study This year 2019, there were 3 major
showed that the aspects that most impact the stoppages in mining projects and
conflict are the consequences towards
operations, which were Las Bambas,
employment and commerce. These results could
Quellaveco and the present case study, the
help local authorities and the government to
make the best decisions to talk with the Tía María Project and its viability whose
population leaders to reach an agreement that impact generated economic instability,
benefits both parties. The quantitative method reflected in the slowdown in monthly
applied in this study showed interesting results economic growth.
and could be applied to determine the main
causative elements of other mining conflicts. The problem in the project of Tía María
brought a strike due to the granting of the
Keywords— Copper oxides; Entropy-weight; Peru;
Shannon entropy; Social conflict; construction license before a prior
consultation, this caused questions about
.I) INTRODUCTION the General Mining Law and the changes
that must be generated to it. This creates
Peru is a mining country, because more than
uncertainty in the industry, which distances
58% of its exports come from this sector. [1]
potential investors and thus the slowdown in
In recent years, private investment has been
economic growth.
declining towards Greenfield and Brownfield
The problem in the project of Tía María
brought a strike due to the granting of the
construction license before a prior
consultation, this caused questions about
the General Mining Law and the changes
that must be generated to it. This creates
uncertainty in the industry, which distances
potential investors and thus the slowdown in
economic growth. [4]
At present it has been possible to observe
many mining projects which have not been
able to achieve social viability. These cases
are commonly observed in developing
countries such as Peru, which are not
observed in mining countries such as
Australia or Canada. In these countries, social
conflicts are not usually observed because
their population has met their basic needs
such as water, sewage, electricity, education,
health and work.
Thus, in these times, the social aspect is
fundamental in the viability of a mining
project in Latin America. The complexity lies
in obtaining the harmonious understanding
between the interests of the company-
company and the state as the governing
body.
We must bear in mind that mining generates
a multiplier effect where there is a direct job,
another five indirect ones are generated,
thus generating a greater amount of work as
opposed to other activities. [5]
There are different methodologies and
models of artificial intelligence applied to the
investigation and analysis of social issues,
among which the Delphi Method, AHP
Method, FAHP Method, Gray Clustering
Method, Shannon Entropy Method, Machine
Learning among others stand out. The
present analysis to be developed will be
performed using the Gray Clustering
Method since the model allows to objectify
the subjective social issue. This methodology
is based on the theory of gray systems which
allows classifying results obtained through
the joint evaluation of the different classes
used for the analysis. Consequently, the
specific objective of this study is to apply a
model of the artificial intelligence branch
called Gray Clustering that allows
quantifying and classifying the perception of
the different stakeholders regarding the
impact of the Tía María Project. In this way
the results of this research served as an
indicator for possible solutions.
II) METHOD
In this section, the entropy-weight method
was properly applied. For all pi within a
probability distribution P, where the measure
H is used and developed, which satisfies the
following properties [6] [7] [10] :
1. H is a continuous positive function
 2. If all pi are equal and pi is the inverse The entropy Hj of each criterion Cj is
of the number of them, then H should calculated with the following equation [9]:
increase as a function of n.
𝐻𝑗 = −𝑘 ∑𝑚
𝑖=1 𝑃𝑖𝑗 ln⁡(𝑃𝑖𝑗 )
3. For all n ≥ 2 ,
(3)
H(p1,p2,…,pn) =
h(p1+p2,p3,…,pn)+(p1+p2)H(p1/p1+ Where k is a constant and 𝑘 = (ln⁡(𝑚))−1
p2,p2/p1+p2)
3rd step:
Shannon taught that the only function that
The degree of divergence divj of the
satisfies these conditions is:
information of each CJ criterion is calculated
𝐻𝑠ℎ𝑎𝑛𝑛𝑜𝑛 = − ∑𝑛1 𝑝1 log⁡(𝑝𝑖 ) by the following equation:
(1)
𝑑𝑖𝑣𝑗 = 1 − 𝐻𝑗
Where: 0 ≤ p1 ≤ 1; ∑𝑛𝑗=1 𝑝𝑖 =1 . (4)

[8] Definition 1: There are “m” objects for 4th step:

evaluation and “n” evaluation criteria, where
The entropy weight wj for each criterion is
the following decision matrix is formed:
calculated by the following equation:
𝑋 = {𝑥𝑖𝑗 ; 𝑖 = 1,2, … , 𝑚⁡; 𝑗 = 1,2, … , 𝑛}
𝒅𝒊𝒗𝒋
𝒘𝒋 = ∑𝒏
𝒋=𝟏 𝒅𝒊𝒗𝒋
Then, the steps of the entropy weight
(5)
method can be performed with the following
steps:
III) CASE STUDY
1st step
The location of the project in question is in
The matrix 𝑋 = {𝑥𝑖𝑗 ; 𝑖 = 1,2, … , 𝑚; 𝑗 =
the department of Arequipa. The mining
1,2, … , 𝑛} is normalized for each evaluation
project “Tía María” is located in Fig 1. [11]
criterion. Normalized values Pij are obtained
from the following equation:
𝑥𝑖𝑗
𝑃𝑖𝑗 = ∑𝑚
𝑖=1 𝑥𝑖𝑗
(2)

2nd step:
 this study [13]. The criteria and questions are
presented in Table II.

Table II : EVALUATION CRITERIA OF THE CASE

STUDY

Figure 1 : Map and location of Peru

Source: https://mapamundi.online/america/del-sur/peru/

Source: http/Archivo:Peru_-
_Arequipa_Department_(locator_map).svg

A) Context description:

In this project, 3 groups of stakeholders were

identified, who are positive or negatively
interested in the Tía María mining project. Respondents responded according to the
following Gray-Clusters or scales: 1 = Very
The definitions of each group or
negative, 2 = Negative, 3 = Neutral, 4 =
stakeholders are found in the following
Positive, 5 = Very positive. According to
Table I: [12] these values the data was aggregated using
Table I: STAKEHOLDERS IN THE CASE STUDY arithmetic media [14], for the Shannon
entropy method, the following table III was
obtained:

B) Calculation using Shannon's entropy:

This calculation is expressed in the following

steps:
Data were collected in 2019 by conducting
1st step:
individual surveys using a questionnaire
based on the evaluation criteria defined for
First, the values in table III were normalized results are also shown in the following table
by equation 2, which resulted in the VI:
following table IV: Table VI: DEGREE OF DIVERGENCE AND
ENTROPY
Table IV: STANDARDIZED VALUES BY CRITERIA

IV) RESULTS AND DISCUSSION

2nd step:

The value of the entropy Hj is calculated with A) The case study:

equation 3 and the results were presented in
the following table V:
Table V: ENTROPY VALUES FOR THE CASE
STUDY
The following shows the divergence graph
obtained after processing the data in the
following table:
The values in table III are recalculated taking
into account the weights of the criteria in
table VI, the results are shown in table VII.
Table VII: DIFFERENCES BETWEEN
STAKEHOLDERS GROUPS

3rd step:

The degree of divergence divj for each

criterion Cj is calculated with equation 4. The
results are shown in the following table VI.

4th step:

The weight calculated by entropy wj for each

CJ criterion is calculated with equation 5. The

Figure 2: Divergence Chart
According to the study of social impact
carried out through surveys, the areas of
influence comprising the towns of the
Tambo Valley and the city of Arequipa, a
greater variability of the criteria
(Employment) and C4 (Commerce) was
obtained; being the cause of the first, the
difference in perspectives between traders
and farmers, given that this criterion directly
affects the interests of traders; on the other
hand, the farmers, when the Tambo Valley
was affected, had the opinion of an
impending pollution and therefore
reduction of employment in agriculture;
Similarly, it was explained for criterion C4, for
the criteria previously analyzed, the greatest
divergence was observed graphically. As a
counterpart, it is possible to observe that the
3 stakeholders analyzed present an almost
zero divergence of criteria C1, C2, C6 and C7.
Regarding criterion C1 (Water), the different
stakeholders agree that the mining company
Southern Cooper had a negative past
regarding the issue of pollution, due to the
lack of environmental regulations. This has
generated a bad reputation for this company
and from that, there is a prospect of possible
aquatic pollution that would adversely affect
agriculture (C2). Regarding the criteria,
C6 and C7 (health and poverty), due to the
factors previously explained, agree that for
both health and poverty, the viability of the
project in relation to these criteria will be
negatively perceived.
After having carried out the surveys of the
inhabitants of the various groups of
stakeholders, it was obtained as a result that
the group of farmers would be the most
affected, followed by settlers and the group
C3
that perceives the project with less negativity
is the merchants. [15]
B) The entropy-weight method
The social conflict of Tía María must be
analyzed taking into account the
participation of the parties involved; in this
purpose, the entropy weight method has
a allowed us to obtain and recognize most of
the criteria that are important in terms of the
conflict of both groups.
In addition, the entropy-weight method,
which is based on Shannon's entropy theory,
considers the term uncertainty within its
analysis. This fact is an advantage over other
classic multi-criteria methods, such as the
Delphi method or the hierarchical analytical
process.
 Finally, the analysis of future conflicts must
be carried out with the help of the Shannon
methodology, which must determine several
types of criteria and relevant parts for each
type of occasion.

REFERENCES
[1] Minsetur, Reporte Mensual de comercio.
[Online].Available:https://www.mincetur.gob.pe/w
pcontent/uploads/documentos/comercio_exterior
/estadisticas_y_publicaciones/estadisticas/exporta
ciones/2019/RMC_Enero_2019.pdf
Figure 3: Python Chart [2] ProEXPLO2019, ¿Cree que se ha avanzado en estos
últimos años en el escenario nacional para
impulsar las inversiones en exploración minera?
[Online].Available:http://www.proexplo.com.pe/20
19/pdf/bol2-nota4.pdf
V) CONCLUSIONS [3] Gonzalo Tamayo (2019, Septiembre 18)
Herramienta de competitividad minera. PERUMIN
34, Arequipa, Perú
Shannon's entropy method proved effective [4] Peru21, Gobierno retrocede en Tía María y
suspende licencia de construcción
for to recognize the criteria that generate the
[Online].Available:https://peru21.pe/politica/gobi
possible social conflicts caused by the erno-
implementation of the Tía María mining
project in Arequipa, Peru.
retrocede-tia-maria-suspende-licencia-
From the analysis, it is possible to determine
construccion-495445-noticia/
the most relevant criterion is employability [5] MINEM, Actividad minera empleó a más de 189
(c3) due to the notable divergence mil trabajadores en el
2017,[Online].Available:http://www.minem.gob.pe
appreciated between the relevant /_detallenoticia.php?idSector=1&idTitular=8519
agricultural and commercial parties. [6] [A] A.Delgado and I. Romero, “Environmental
conflict analysis using an integrated grey
Therefore, the authorities and the company clustering and entropy-weight method: A case
must take steps to reach an agreement and study of a mining project in Peru,” Environ. Model.
Software., vol. 77, pp. 108–121, 2016.
avoid future social conflicts. Another [7] A. Delgado, "Social conflict analysis on a mining
project using shannon entropy," 2017 IEEE XXIV
important criterion is trade (c4) which also
International Conference on Electronics, Electrical
presents specific divergences. With respect Engineering and Computing (INTERCON), Cusco,
2017, pp. 1-4.
to the other criteria, such as agriculture (c1), doi: 10.1109/INTERCON.2017.8079661
water (c2), poverty (c6) and health (c7), the [8] Y. Ji, G. H. Huang, and W. Sun, “Risk assessment of
hydropower stations through an integrated fuzzy
stakeholders agree in their responses that entropy-weight multiple criteria decision making
express negativity towards the project.
 method: A case study of the Xiangxi River,” Expert
Syst. Appl., vol. 42, pp. 5380–5389, 2015.
[9] Calculadora en línea: Entropía de Shannon. (s.f.).
Recuperado 25 noviembre, 2019, de
https://es.planetcalc.com/2476/
[10] A. Shemshadi, H. Shirazi, M. Toreihi, and M. J.
Tarokh, “A fuzzy VIKOR method for supplier
selection based on entropy measure for objective
weighting,” Expert Syst. Appl., vol.38, no. 10, pp.
12160–12167, 2011.
[11] Grufides, “southern copper: cuando los malos
antecedentes no importan,”.[Online]. Available:
https://grufides.org/blog/southern-copper-
cuando-los-malos-antecedentes-no-importan
[12] P.Corbetta, Metodología y técnicas de
investigación social. Madrid: McGRAW-HILL, 2007.
[13] A. Delgado and I. Romero, “Environmental conflict
analysis using anintegrated grey clustering and
entropy-weight method: A case study of amining
project in Peru,” Environ. Model. Softw
[14] J. Aznar and F. Guijarro, Nuevos métodos de
valoración, modelos multicriterio, vol. 2a.
Valencia: Universitat Politèctica de València, 2012
[15] H. Pinto Herrera, Proyecto minero Tía María:
razones de la protesta, IS, vol. 20, n.º 36, pp. 199-
213, feb. 2017.