LAS BAMBAS CONTINUES SUPPORT FOR DIALOGUE
Public statement in response to recent events surrounding the Las Bambas operation in Apurimac, Peru:
- Las Bambas strongly welcomes the efforts by the Government of Peru to find a solution to community concerns and offers to play an active role in support of community dialogue and the social development of Apurímac and Peru. We also welcome the support from many in surrounding communities.
- The blockade of national public road PE-3SY in Yavi Yavi (Cusco) and at our access gate to the mine is preventing more than 8,000 employees from entering and exiting the operation. The prevention of the free movement of people and supplies is also restricting community access to family and the exercise of fundamental rights.
- The continuity of the blockade is also preventing the arrival of supplies and the transport of ore. This could lead to the suspension of operations over the next days, and will cause serious damages to the local and national economy. Since 2016, Las Bambas has paid more than S/ 750 million in royalties, which have benefitted 84 municipalities and two universities in Apurímac, and the Apurímac Regional Government.
- The Ministry of Transport and Communications has confirmed that the blocked road existed since 2008 as a minor public road. It existed when the company transferred the property to the Fuerabamba Farming Community in 2011 as part of the compensation agreement. As is the case with any other public road, the law states that it may be freely used by anyone. Its subsequent reclassification as regional and national road was in response to the requests made by district, provincial and regional authorities, as stated in public documents.
- The negotiation of the resettlement process began in 2008 and the agreement was finalised in 2011 with the active and permanent participation of the community of Fuerabamba. The dialogue was carried out with the assistance of external advice and with respect for the unique culture of the Fuerabamba community. Following the requirements of the community, their homes were purpose-built to designs approved by the Fuerabamba community in the Apurímac Region.
- The Las Bambas and Antapaccay mining projects were originally part of one company. The ore from Las Bambas was going to be processed at Antapaccay, and both operations were going to be linked by a slurry pipeline. The change in the ore transport process was a technical requirement for the separation of both projects. This was carried out through an amendment to the Environmental Impact Study that complied with all the legal processes. This amendment was performed before Glencore sold Las Bambas to the joint venture led by MMG.
- The requests that Las Bambas has received from the new representatives of the Community of Fuerabamba, and its advisers, are for financial compensation with no basis in law and without reference to market value. The community has repeatedly rejected offers made by the company to contribute to development projects..
Las Bambas strongly condemns the use of violence and maintains its support for dialogue as the preferred way to maintain operations and achieve a timely solution and avoid damage to the economy of the Apurimac Region and Peru.
Lima, 30 March 2019