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Environmental & Social Review Summary
This Environmental and Social Review Summary is prepared and distributed in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board of Director’s decision. Board dates are estimates only.
Any documentation which is attached to this Environmental and Social Review Summary has been prepared by the project sponsor and authorization has been given for public release. IFC has reviewed this documentation and considers that it is of adequate quality to be released to the public but does not endorse the content.
Latin America and the Caribbean
Antares Minerals Inc.
Date ESRS disclosed
May 14, 2009
Invested: July 17, 2009
Signed: June 25, 2009
Approved: June 19, 2009
View Summary of Proposed Investment (SPI),
Category & Applicable Standards
Key Issues& Mitigation
Overview of IFC's scope of review
IFC specialists visited the Antares Haquira project site from 30th March - 3rd April 2009, and met key Sponsor representatives. Following high-altitude safety induction (and medical tests), field visits were organized to the different exploration areas within the concession license area. Various discussions were held with members of the workforce, five community projects were visited and a discussion was held with the President of the community of Huanacopampa which lies adjacent to the exploration camp.
Follow up detailed technical, E&S and financial discussions were held at the Antares Minerals Arequipa offices. Documents reviewed have included Baseline Environmental Assessments covering air and water quality, biodiversity, noise and archaeology, as well as a Diagnostic Social Assessment and the Company’s draft Community Relations Policy. The Antares team also made three detailed PowerPoint presentations to the IFC team (General, E&S and Geology).
Antares Minerals Inc is a listed (TSX V.ANM) Canadian junior mining exploration company focused on the Haquira Copper (Cu) exploration project. This is located 80 km south west of Cusco (some 215 km by road), at high altitude (3800-4400 m) in the Apurimac Department of southern Peru, which is considered to be one of the poorest regions in the country. Its local subsidiary is Minera Antares Peru S.A.C. The Haquira project straddles the boundary of the Provinces of Cotabambas and Grau.
The nearest town with services is Chalhuahuacho located ~15 km east of the project camp although the small community of Huanacopampa lies next to the exploration camp. All supplies and fuel are trucked in from either Arequipa or Cuzco. An electrical sub-station is located approximately 16 km to the SE of the project. Electrical lines for limited domestic use are currently being installed to many of the small communities near the project, but are not yet activated.
Minera Phelps-Dodge del Peru S.A.C. discovered the Haquira deposits and obtained all the necessary environmental and surface access agreements to undertake initial exploration activities at the Haquira project between 2001 and 2003. In 2005, Antares Minerals Inc. (“Antares”) (ANM-TSX.V) and Minera Phelps Dodge del Peru S.A.C. (“Phelps Dodge”), a wholly owned subsidiary of Phelps Dodge Corporation (PD-NYSE), executed an option agreement whereby Antares could acquire a 100% interest in the Haquira SX-EW copper project. On July 25, 2003, Minera Phelps-Dodge filed a Category C Environmental Evaluation for the development of an exploration program consisting of the construction of 92 drill pads. The area disturbed by this exploration program was estimated to be 11.8 hectares. Phelps Dodge agreed to sell the Haquira project concessions to Antares when Xstrata Copper won the privatization bid for the adjacent Las Bambas property.
The project shows potential for an open-pit copper mine operation as well as an opportunity for a potential future underground mining operation in due course.
Step out drilling and various geophysical and geological work indicates that there is considerable potential for the mineralization to continue significantly beyond the area that is the basis for the current resource estimate. At least one satellite deposit (Cristos los Andes) has been discovered some 10 km to the south and there may well be others. Any mining at Cristos los Andes would likely be processed at a central plant at Haquira.
Haquira currently has an interim resource estimate (inferred and indicated, utilizing a 0.3% Cu cut-off) of 450MT sulphide ores @ 0.6-0.7% CuEQ and 175MT leachable oxide ores @ 0.5% CuEQ grade, which equals 8.6 billion lbs CuEq in ground. A pre-feasibility study of the shallow oxide ores is now underway and due for completion in 2010. There have been four separate drilling campaigns (some 275 holes) since the start of Phelps Dodge involvement. The majority of the holes were in the upper secondary copper ore zone. The “discovery hole” of the underlying primary porphyry at Haquira East (drill hole AHAD-097, after approximately 210 previous holes) was completed on 23 December 2006. The hiatus between these campaigns has caused some confusion in local communities between raised expectations when drilling was taking place and feelings that they had been abandoned when drilling stopped. Haquira has been working with local communities to explain the exploration process.
Haquira is located south of and adjacent to Xstrata’s Las Bambas project, a large copper project which will require construction of significant infrastructure to the area.
Antares also has a copper exploration project in the province of Salta (50/50 JV with Mansfield Minerals Inc.), northwestern Argentina, but the project has been put on hold and there are currently limited plans for continued exploration activities.
In light of the decreased copper price, the company’s strategy is to conserve the cash on hand to cost-efficiently advance scoping studies, prefeasibility and feasibility studies and continue work with the local communities to plan and prepare for future development of the project. The Company has $10 million in cash at hand, which together with the proposed IFC investment of $5 million is expected to carry the Company to completion of the pre-feasibility study for the upper secondary copper mineralization and also significantly advance the definition of the underlying primary sulphide mineralization.
IFC has identified Peru as a primary target for mining investment, given the substantial mineral resources, positive environment for private investment, and potential to contribute to economic development. Peru’s mining sector is of vital importance to the country as it represents over 6% of GDP and last year contributed nearly 30% of the Government’s tax revenues. Mining revenues have recently been growing at more than 6% annually and are by far the country’s main export revenue source, representing 62% of the country’s total exports in 2006 ($14.7 billion). In addition, during 2007, $1.7 billion in royalties were returned to municipalities in the mining areas, most of which are otherwise extremely poor rural areas characterized by economic stagnation, lack of government capacity, low employment opportunities and weak, underdeveloped social capital. President Garcia has brought a change in Peru's political and investment climate, and since mid-2007, the administration has been urging mining companies to implement sustainable mine development.
The proposed investment addresses the relevant lessons learned from other mining projects, in particular the need for a strong sponsor with proven track record and good understanding of the industry; a sponsor striving to employ environmental and social best practice; and a sponsor willing to address key HSEC issues already at exploration stage. This project is also in line with recent IFC experience in the mining sector that has identified the value of IFC engaging early to help the sponsor manage potential environmental and social effects.
The project is located in a remote frontier region of Apurimac, in a rural area of the Andes highlands with little access to basic services, widespread poverty, and almost no formal employment opportunities. Approximately 37% of the population of Apurimac is illiterate, a situation that is even more extreme in the project area. The 18 ‘Comunidades Campesinas’ (Rural Andean Communities) identified by Antares as being located within the area of direct and indirect influence of the project are still very traditional in their customs and practices, and for the most part they rely on a subsistence economy, combining herding (cattle, sheep and some horses) and limited agriculture (mostly potatoes) on communally held land. The four communities that are more directly impacted by the exploration activities are Huanacopampa, where the exploration camp is located, Ccahuanhire, Pararani, and Lahuani.
Although there will be limited benefits during the exploration phase, there are potentially significant economic development benefits during any future construction and production phases, including tax revenues/foreign exchange contribution to the national and local economy as well as development of vital transportation infrastructure that will improve possibilities for other economic activities.
The proposed project directly supports the WB/IFC Strategy for Peru, namely: directly improve opportunities in rural areas; invest in sectors in which Peru has a competitive advantage; and enhance the community benefits of exploitation of non-renewable natural resources. Peru has signed EITI.
Antares has expressed its ambition to follow best practice. At the exploration stage, for a junior company it has already achieved a considerable amount in the form of community outreach programs.
IFC will assist Antares in preparing a Health, Safety, Environment & Community Policy which will contain management plans through the exploration stage and commitments for any future development of a mine.
Identified applicable performance standards
While all Performance Standards are applicable to this investment, IFC’s environmental and social due diligence indicates that the project financed by IFC (exploration and feasibility studies) will have impacts which must be managed in a manner consistent with the following Performance Standards:
PS1: Social and Environmental Assessment and Management Systems
PS2: Labor and Working Conditions
PS3: Pollution Prevention and Abatement
PS4: Community Health, Safety and Security, and
The project is in its early stages and the only activities are further exploration drilling and completion of feasibility studies. Whilst the area is not densely populated, there are a number of communities in close proximity to the company’s exploration activities. At this stage, Performance Standard 5: Land Acquisition and Involuntary Resettlement is not triggered as no resettlement is being undertaken. Bio-diversity studies have indicated no endangered species and therefore PS 6 is not triggered. The Rural Andean Communities living in the project area of influence are not identified as Indigenous Peoples for the purposes of PS 7 but the project will treat them in accordance with the requirements of this Performance Standard. Archeological surveys have been completed and the company has received clearance that no significant archaeological sites are present, therefore at this stage of the project Performance Standard 8: Cultural Heritage does not apply.
Other PS may become applicable in the future should any of the exploration sites be taken forward to mine development. Antares has committed in its HSEC Policy to complete a full SEIA prior to the start of any substantive mine development. Any IFC investment in such a development would be assessed as a new project.
Environmental Health & Safety (EHS) Guidelines that are expected to be applicable to this investment include:
General EHS Guidelines (April 2007), and
Mining EHS Guidelines (December 2007).
Environmental and social categorization and rationale
This is a Category B project according to IFC’s procedures for Environmental and Social Review of Projects because the project only involves exploration and therefore has limited adverse impacts and risks which are manageable. The key risks include control of erosion and rehabilitation of temporary roads, waste management; water management; public safety, dust control, hazardous materials management and mitigation of transportation risks on roads leading to the site; and management of community expectations during ongoing consultation and disclosure.
This categorization evaluates actual project risks, where the project is defined as the scope of work funded by IFC’s investment. The scope of the project is limited and it has limited adverse environmental impacts that are generally site-specific, largely reversible, and readily addressed through mitigation measures. In this context, the following summarizes the impacts associated with this early stage exploration project:
This early stage exploration investment provides support for activities that are part of the exploration program, the completion of BFSs and the company’s community engagement activities, and it does not involve mineral production or civil construction activities (although limited access roads and basic infrastructure, such as the camp site, is required at this stage).
Potential environmental issues at the exploration stage are limited and associated with management of sampling and drilling sites, management of water resources, protection of soils, solid and liquid waste management, vehicle impacts, handling, use and storage of fuels and reclamation of exploration areas.
Social issues include temporary access to communally held pastoral land (and potentially compensation for temporary loss of agricultural land), consultation with stakeholders while managing expectations, management of exploration camps and their workforce, and influx management.
All of these impacts are limited, site-specific, almost completely reversible, and readily addressed through mitigation measures and careful management. The draft disclosure and consultation process of the company is already in place and has been implemented diligently, letting the affected communities know the scope and impacts of exploration work being undertaken and getting an early indication of community views and expectations.
Key environmental and social issues and mitigation
PS 1 Social and Environmental Assessment and Management Systems:
Prior to granting of an Exploration Permit, the company was required to submit to the Peruvian Authorities a “Category C” Environmental Assessment, citing expected environmental impacts and corresponding mitigating measures.
The management of risks discussed in this ESRS consists of those associated with exploration. IFC is investing in exploration and feasibility studies, which have minimal impact. Antares subscribes to the IFC Policy and Performance Standards on Social and Environmental Sustainability. If the exploration project is proposed for mining development, Antares will prepare the environmental and social documentation needed to demonstrate compliance with IFC standards. Should IFC be involved in financing such a project, it would be treated as a separate investment and its categorization would be determined after the necessary due diligence.
Social and environmental assessment: Antares have used consultants from Golder Associates and AWS to undertake extensive baseline studies covering air and water, bio-diversity, noise and archaeology. A Diagnostic Social Assessment has also been carried out by On Common Ground (OCR) consultants. Antares have built a weather station on a bluff overlooking Haquira East and wind speeds and directions, temperatures and rainfall are all logged. Data is exchanged with Xstrata who also have a weather station located in the village of Huanacopampa. Planning for a detailed SEIA of any future mine development has not yet started but would likely be developed in conjunction with the BFS scheduled to start in 2010. Peruvian legislation requires all detailed engineering design to be completed prior to commencement of the SEIA. However, Antares will follow best practice in undertaking the SEIA in parallel with the BFS to ensure that one can inform the other.
There are several other active exploration projects in the area, the largest of which is Xstrata’s Las Bambas project which is adjacent and to the north of Haquira, other exploration companies active in the area are Norsemont, Southern Copper, Southwestern Resources and Panoro. The potential cumulative impacts of projects that may be developed will need to be carefully considered at Haquira’s SEIA stage.
Antares has all required environmental permits as follows:
14 Nov 2005: Environmental Assessment (Category C) (by Minconsult)
4 Sep 2006: Environmental Assessment Modification (Category C) (by Minconsult)
4 May 2007: Environmental Assessment (Category C) (by Golder Associates)
Feb 2008 CIRA Certificate (see PS8 section below for explanation)
Nov 2008: Water Permits issued
Early 2009: Start Modification to EIA (Category 1 under the new classication system) (by Horizontes Eng)
The geomorphology of the property consists of gently rolling hills with grassy vegetation interspersed with steep rocky ridges rising 150-200 meters. Base levels of the surrounding valleys are approximately 3,700 meters A.S.L., with peaks rising to over 5,000 meters. Elevations on the Haquira property in the area of defined mineralization range from approximately 3,800 to 4,400 meters. Rock outcrops are somewhat limited, although quartzite units form prominent cliffs. Locally, there are well developed “peaty” soil profiles, which effectively mask much of the property geology. The main mineralized areas are located in areas primarily used for animal grazing and to a lesser extent for potato cultivation. The concession area is largely above the tree-line with only occasional stands of Eucalyptus (non-indigenous) usually associated with habitation.
Bio-diversity studies covering fauna and flora have been completed by Golder Associates consultants during 2009; these covered amphibians, reptiles, birds and mammals. These have not identified any endangered or critically endangered species or eco-systems within the exploration areas or areas that could potentially be mined. Therefore PS6 will not be triggered at the present time. However, within the concession area (but outside known mineralization and well away from any possible mining), a small lake exists to the south-west where CITES / IUCN endangered species of water fowl have been identified and may subsequently be considered for an “area of preservation”. Bio-diversity issues will be considered more closely during any SEIA process for mine development.
There are no protected areas anywhere near the site, the nearest being the RP Sub Cuenca del Cotahuasi which lies around 100 km to the south.
The exploration camp covers a small area and is designed to be temporary. Core storage is at a warehouse in Arequipa rather than at site.
As part of the baseline studies, the company commissioned an archaeological study which was undertaken by a consultant. As a result of this the company has been issued with a CIRA certificate (Certificado de Inexistencia de Restos Arqueologicos) by the Peruvian Instituto Nacional de Cultura which states the non-existence of any significant archaeology on the site.
Management systems and training: Whilst Antares has undertaken an impressive array of baseline data collection and has an outline E&S Policy, it does not yet have any formalized and integrated E&S management system. During the appraisal, IFC recommended (and Antares agreed) the development of a Health, Safety, Environment & Community Policy, similar to those prepared for IFC’s other early-equity exploration deals. During the appraisal, IFC provided assistance to Antares to prepare a draft HSEC Policy and this will be finalized prior to equity subscription. The HSEC Policy can form the basis of a framework ESMS which will need to be developed at SEIA stage. Antares has a draft Community Relations Policy that will be finalized and integrated in the HSEC framework.
Organization: As an exploration company, Antares has significant E&S capacity plus significant consultant input. Richard Hasler (VP Community Affairs) and his team have developed strong relationships with all the nearby communities; he has a staff of one environmental officer, one health & safety officer and eight community liaison officers.
Environmental Policy: Antares has an outline Environmental Policy statement which states:
Any activity undertaken by Antares Minerals complies with, and is enforced by, the laws within the Country in which it operates.
Antares will promote and implement environmental protection practices and efficient use of Natural Resources to help protect and conserve the flora, fauna and ecosystems as well as prevent any negative impact.
Antares will train local people to take care of the environment.
The Community Relations Policy states that the company's vision is that “the collective population surrounding the activities of exploration and exploitation, the Apurimac region and Peru perceive a positive impact thanks to the project and grant community license because of their perception of these effects...Collaboration through dialogue and mutual accord will be necessary, minimizing negative and emphasizing the positive impacts of the project.”
The company has committed to implementing an HSEC Policy with IFC input, as noted above. This will adhere to all applicable in-country environmental legislation as well as working within IFC’s Performance Standards (PS). A brief description of the PSs was undertaken during the appraisal and an electronic copy of the PSs, the guidance notes and applicable guidelines (Mining and General EHS) were provided to the company along with an example of an AMR for an exploration company.
Monitoring: Extensive baseline data collection has been undertaken by consultant Golder Associates and more recently Peruvian company AWS (whom Golder Associates had been using as sub-contractors). The level of data collection is impressive for a junior exploration company at this stage and includes air and water monitoring, bio-diversity, noise and an archaeological survey. All reports have been provided to IFC. Ongoing monitoring is being undertaken on a quarterly basis. All ongoing monitoring is participatory involving both communities and Government.
Reporting: Antares do not currently publically report on the environmental and social aspects of their operations at this stage. However, the company is engaging with local communities who have requested more information on environmental matters. Antares will provide a simple AMR to IFC on an annual basis detailing environmental and social progress, incidents and monitoring, as appropriate.
PS 2: Labor & Working Conditions:
Human Resources (HR): The total workforce of the company during drilling campaigns is around 100 people (excluding local workforce, which varies from 25-75 positions occupied for the most part on a rotational basis to maximize the benefits for the majority of villagers). Antares only has 35 direct hires and the remaining staff is divided between two drilling contractors and several support contractors for food services, security, etc. Antares will develop a Human Resource policy that also applies to contractors and subcontractors in order to formalize its HR management.
As part of the Haquira Community Relations Policy, the company has developed a local employment program, which strives to establish fair and equitable contracting practices while also managing the communities expectations and the risks associated with increased in-migration. Communities are informed of unskilled hiring needs and participate in the selection of community members based on specific criteria to provide this labor in demand on a rotational basis. Antares works closely with drilling contractors in order to identify necessary staffing and a list of positions is presented in an open forum for consultation with the local communities.
Occupational Health and Safety (OHS): At the time of appraisal, Antares did not keep Occupational Health and Safety (OHS) incident reports or environmental incident reports. This was largely due to the fact that, with the exception of three road accidents resulting in minor injuries only, no significant incidents had been recorded since Antares started the exploration program. The company has committed to thorough documentation of all OHS and environmental incidents.
Antares provides health care for individual employees through a clinic based on site. Particular care is taken due to the altitude of the site (3800-4400 m) with monitoring for signs of altitude sickness.
Grievance Mechanism: Antares have a stated open door policy regarding grievance but a formal system for workers’ grievances still needs to be developed and implemented.
PS 3: Pollution Prevention & Abatement:
Solid Waste: Antares generates minimal amounts of waste but it is all segregated appropriately. The company responsibly manages their waste streams and the final disposal methods. The main solid waste includes domestic and office waste and sewage. All wastes requiring disposal are disposed of by contractor EPS (which is a DIGESA authorized service company). DIGESA is the Peruvian Environmental Authority.
All vehicles are rented and are maintained in the city of Cusco by the owners under the rental agreement. All drilling rigs are similarly owned by contractors with principal maintenance off-site.
Liquid Waste: Includes mainly sewage effluent at the main exploration camp, storm-water runoff, minimal amounts of used oil, grease, lubricants and drilling fluids from drilling activities (these are recycled to the supplier).
Waste Management System: Wastes are segregated. Domestic waste that cannot be recycled is ‘incinerated”. Waste for “incineration” is burned in an open fire whilst the biodegradable waste is deposited at the same incineration site.
A septic tank sewerage system is in place for handling sewage.
There is very little topsoil in the area and it is not practical to stockpile any for rehabilitation purposes as part of drill-hole closures.
Ambient air quality monitoring and noise monitoring have been undertaken since 2007 as follows:
Golder Associates: Feb, May, Sep, Dec 2007
AWS: Jan, Jul 2008 and Jan 2009 (Jul 2009 planned)
Parameters measured were: PST (Total Suspended Particles), PM-10 (particles less than 10 microns), Gases SO2, H2S, CO, and O3 and Heavy Metals (Cu,Hg,Pb,As). All parameters are within national air quality standards.
As a standard operating procedure; all drilling fluids are contained within sumps.
To reduce dust releases to air from the drilling activities, dust suppression water is used. Some re-vegetation of drill pads has been undertaken but the local community has noted that these areas will likely be mined and suggested the money would be better spent on community projects.
Energy use: Power for the camp is supplied from a small generator. Fuel for the Genset is currently stored in containers in a bunded area. The only other emissions are from the small fleet of 4-12 light vehicles depending upon level of drilling activity.
Water Quality and Use: Rainfall is abundant between December and March (approx 1000 mm per annum) and much of this falls during storm events in the rainy season. Nocturnal freezing temperatures are reached during the winter months of June to August. Water is pumped from a nearby river and purified for the exploration camp.
It is projected that any future mine would source water partially or entirely from underground sources. The company would need to negotiate a water license for such use. Access to water in Peru is a sensitive social issue but the site is not located in the arid part of Peru. However, the cumulative effects of other developments such as Las Bambas could place a strain on water resources. The company is well aware of the sensitivity and will proactively manage the issue.
Water Monitoring has been undertaken as follows
Minconsult EA 2005
Golder Associates EA 2007 Baseline Study / Inventory of Water Use
Golder Associates Monitoring: Feb, May, Sep, Dec 2007
AWS-ALS Monitoring: Apr, Jul, Aug, Sep, Nov, Dec 2008, Jan 2009
AWS-ALS Monitoring (planned): Apr, July, Oct 2009 (note reduction to quarterly on consultant recommendation)
Parameters measured are Physio-chemistry, Inorganic content, Microbiology and Heavy Metals. None exceed national water quality standards for the uses indicated.
Emergency Response and Preparedness Plan: Antares have not yet developed an Emergency Response Plan or Procedures (ERP), this is included in the outline HSEC Policy noted above.
PS4 Community Health, Safety and Security:
The transportation of workers and equipment during exploration poses a risk to community health and safety, both in terms of potential accidents (including the communities’ domestic animals) and the production of dust. Defensive driving training is required and provided to both directly hired and contractors’ drivers
Antares and contractor staff are accommodated in a closed camp and receive induction upon their arrival, including on specific rules that minimize contact between the workers and the local population, as well as Occupational Health and Safety and environmental aspects. Community members also receive OHS and environmental training as appropriate.
Security Personnel Requirements: Antares has subcontracted the security firm Orus S.A., which is a well-known firm used by many other large scale mining and exploration companies in Peru. Orus S.A. has an integrated management system and is ISO 14001 and OHSAS 18001 certified but does not adhere to any international best practice or codes of conduct in matters of security and human rights. Antares will, in due course, develop a system to include contractual requirements such as training and monitoring of their security contractor’s performance.
Client's community engagement
The Haquira project concessions encompass 18 Rural Andean Communities (RACs). Communal land ownership and community use of natural resources (e.g. pasture lands), and traditional decision-making arrangements are common in RACs. Quechua and limited Spanish are spoken in these communities (both languages are recognized as official languages by the Peruvian Constitution). The RACs within the concession are poor, vulnerable, and dependent on subsistence small-scale farming, herding, and grazing, and some limited wage labor related to the exploration activities. They have limited access to social services, roads, and markets. The Peruvian legal framework recognizes and protects the land rights and cultural particularities of RACs. The identification of RAC members as indigenous peoples is a complex issue that is subject to on-going debate, given the different levels of integration of these communities into the broader society and the fact that generally the members of these communities are opposed to being labeled as indigenous. Antares will continue to work closely with these communities, undertaking continuous consultation to ensure that Broad Support is maintained. Antares will also work within the provisions of PS7 as appropriate and in accordance with the wishes of the communities.
The company understands that mapping Antares’ areas of direct and indirect influence, and understanding the diverse characteristics of the impacted communities, is a complex and challenging matter that needs to be re-evaluated on a regular basis. In that view, and with the stated intention of interacting with the communities in a culturally appropriate and informed manner, Antares has commissioned two in-depth social diagnostic studies, one focused on the most immediate area of influence that was delivered in August 2008, and another one on the broader stakeholder landscape that was undertaken in early 2009 and is currently under development. The most directly impacted communities at the current stage of operations are Huanacopampa, including its satellite community of Ccarayhuacho which together comprise about 54 households with an average of 6 members per household (i.e. approximately 324 residents), Pararani, which is made up of 4 hamlets totaling 70 households (and over 400 residents), Ccahuanhire with about 56 households, and Lahuani (over 35 households). Although the estimated numbers of households and community members vary widely across several studies, it can be assumed that these four communities add up to well over 1,000 inhabitants. While Huanacopampa and Ccarayhuacho are communities that belonged to a large privately-held hacienda or ranch until 1985, Pararani and Lahuani are ancient communities steeped in tradition.
No resettlement is being undertaken for this project and although small areas of pastoral land are temporarily set aside for exploration, this limited economic displacement does not result in any significant adverse impacts in terms of communities’ livelihoods. A total of 20 ha have been used for drilling activities and access roads between 2006 and 2008, mostly in Huanacopampa and Pararani that cover areas of 1283 ha and 1024 ha respectively. Antares needs to obtain the authorization from the communities to use their land and has developed a negotiation protocol, which results in written agreements between the communities and the company. Compensation for this minimal impact on community pastures is provided in the form of capacity building activities chosen by the communities and usually related to the improvement of agricultural practices and animal husbandry, such as the three “Improved Pastures” pilots, several fish farming pilots, and veterinarian technical assistance. In terms of productivity, these programs make up for the temporary loss of 20 ha of land.
Antares has a ‘Land Use Agreements Program’ as part of their draft Community Relations Policy in which the principles and procedures for land use negotiation are clearly laid out. These principles and procedures, as they are currently implemented, meet IFC’s standard for free, prior, and informed consultation, as well as informed participation, but the document still needs to be better articulated in some areas and finalized. Antares has organized two field trips to Tintaya, an operational open pit copper mine, with over 40 community members on each visit. The company has also developed culturally appropriate presentation materials explaining the exploration and mining processes to the local communities.
Antares has 10 community relations staff on the ground (out of a total of 35 direct employees) and, in addition to daily interactions, participates in meetings on an approximate monthly basis with each community in its direct area of influence. The team is therefore aware of the levels of community support the exploration project enjoys at any time and is prepared to make necessary adjustments to their activities or community engagement efforts in order to ensure broad community support. The feedback from the communities received by the IFC team during its site visit was positive and at times even eager for a more rapid expansion of Antares’ exploration activities. This is clearly due to the extensive benefits received by the communities, both in forms of employment during the drilling activities and in the context of other projects such as road maintenance, as well as the various community assistance projects described below.
As part of the Haquira Community Relations Policy, the company has developed a local employment program and associated vocational training, which strives to establish fair and equitable contracting practices while also managing the communities’ expectations and the risks associated with increased in-migration. Communities are informed of unskilled hiring needs and participate in the selection of community members based on specific criteria to provide this labor in demand on a rotational basis. Antares also works closely with its two drilling contractors in order to identify necessary staffing and a list of positions is presented in an open forum for consultation with the local communities prior to a drilling campaign.
Local access of project documentation
Spanish and Quechua versions of the Environmental and Social Review Summary and the Environmental and Social Action Plan will be disclosed by the company and made available to the public locally in:
Huanacopampa, Ccahuahuire, Pararani and Lahuani
Ccahuapirhua, Ccase, and Quena
Challhuahuacho, Tambulla, and Progreso
For additional information, please contact individuals indicated below:
President – CEO
Antares Minerals Inc
5215 Bear Paw Dr.,
Community & Corporative Affairs
Minera Antares Peru SAC
Psje Simon Bolivar 101, Yanahuara
Tel.: +51 (54) 270-616
IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring them to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities.
In addition, Affected Communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC. The CAO is mandated to address complaints from people affected by IFC-supported business activities in a manner that is fair, objective, and constructive, with the goal of improving environmental and social project outcomes and fostering greater public accountability of IFC.
Independent of IFC management and reporting directly to the World Bank Group President, the CAO works to resolve complaints using a flexible, problem-solving approach through its dispute resolution arm and oversees project-level audits of IFC’s environmental and social performance through its compliance arm.
Complaints may relate to any aspect of IFC-supported business activities that is within the mandate of the CAO. They can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC-financed business activity. Complaints can be submitted to the CAO in writing to the address below:
Compliance Advisor Ombudsman
International Finance Corporation
2121 Pennsylvania Avenue NW
Washington, DC 20433 USA
Tel: 1 202 458 1973
Fax: 1 202 522 7400
The CAO receives and addresses complaints in accordance with the criteria set out in its Operational Guidelines which are available at: www.cao-ombudsman.org
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