A new contribution framework negotiated between mineral resource giant Xstrata and the Espinar community regarding the company's Tintaya-Antapaccay copper mine in Peru's Cuzco region is to be included in the agreements reached with local governments through roundtable talks.
Environment minister Manuel Pilgar Vidal said in a televised interview that the
Corporate affairs manager for Xstrata Copper South Peru division, Domingo Drago told BNamericas that roundtable talks are scheduled to wrap up on January 15.
The current voluntary contribution framework, which Xstrata designed in 2003, stipulates that the company contributes 3% of pre tax earnings, prioritizing development projects in 75 communities in Espinar province.
Community members, however, are requesting an increased percentage from Xstrata, as well as a new mechanism to manage contributions.
NGO CooperAcción director and former deputy environment minister José de Echave told BNamericas that the communities are looking for more participation in the spending of the fund. Mr Echave said that "The mechanism designed in 2003 in theory was a participative mechanism, but what has happened is that the company has handled it in the background.”
Earlier this year, Xstrata Tintaya's operating manager, Mr Luis Rivera, said on local TV network Canal N that an increase in contributions to 30%, as requested by the community, was not on the negotiating table.
He added that Xstrata's contributions could increase by 60% next year with the development of the USD 1.5 billion Antapaccay project, a satellite deposit that will replace Tintaya as it comes to the end of its mine life.
Roundtable talks were set up in June following a state of emergency declared on May 28 due to increasingly violent protests against Tintaya-Antapaccay that left two dead and more than 70 injured.
