Exploitation PlanAgreement with the communities is the key issue here. The PR shows that the social issue has not been considered yet and the company have not made a preliminary contact with the local communities or made workshops or have signed an agreement before planning any exploitation plan. So I understand that this is an exploitation plan without a social DD or a social license yet.
Some main issues to be solved by the company:
1) 300 tn/day mean 15 trucks a day to transport the ore (20 tn per truck) from the mine to the plant facilities;
2) There are only two narrow access to the mine as its shown in the EIA; both extremely sensitive with communities as its a farming area, access is difficult and narrow; existing access have to be expanded and goes through all the farming areas and the small towns; dust control and potential transit accidents will be a sensitive issue while exploitation. The preliminary EIA considered the construction of a new access to the mine, away from farming area and towns.
3) To exploit the Atenea veins means that hidrogeological study has to be done. Usually communities main concern with an underground exploitation is that may cause the pollution or alteration or cut of the existing water underground sources that pass close to the mine and farmers use for farming in the valley;
4) No surface rights secured; the existing EIA for exploitation has no surface rights agreement signed with community;
So unless there is some kind of agreement with the local communities to exploit the mine and social development agreements are signed, I see a potential social conflict that may affect the exploitation plan.
I would prefer to see the results of the Community workshops in the next 5 months. I think its to early to think about an exploitation without a social license or agreement.
Transcription of the PR:
The Company is in discussions and negotiations with a number of Peruvian mining contractors. A team to prepare the necessary small mine permits will be formed and contracted within the next month and should have the permit applications completed within 5 months. Community workshops will take place within the required timeframe.