Anglo American PLC will invest about US$30 million on community projects near its Quellaveco copper mine, in Peru's southern Moquegua area, earlier than planned due to protests by community members that threatened to disrupt operations.
The local development projects are being launched three years earlier, Reuters reported on Aug. 22, quoting Eduardo Serpa, Anglo American's sustainability manager in Peru.
The community and local authorities have been critical for some time over the lack of local employment by Anglo, who they say has breached an earlier agreement to employ 80% of its unskilled labor from the area, a charge the company denies, according to El Comercio. The newspaper said the community was also concerned that the mining operation was contaminating the nearby Tumilaca river.
Anglo held a meeting with the community on Aug. 19 to discuss their concerns, releasing a press statement later that day announcing it would advance 100 million Peruvian soles for project funding, as well as 5 million soles for agricultural development and 5 million soles to expedite the projects.
Serpa said the company had planned to spend 650 million soles on community development in the operation stage but decided to bring 100 million soles forward to the construction stage, according to Reuters.
The agreement includes allowing increased community involvement in monitoring the environmental impact of the mine and appointing a committee to drive local procurement, Anglo said in the statement.
As of Aug. 22, US$1 was equivalent to 3.38 Peruvian soles.
