PERUMIN 34: Bear Creek's work with Chacaconiza and Quelcayahttps://www.gbreports.com/files/pdf/_2019/MINPER_2019_-_Web_Preview.pdf (page 24)
Andres Franco
VP Corporate Development
Bear Creek Mining
What are the latest advances of the Corani project?
We already have all the permits for the project, including the construction one. We have started early works, for example the substation in the Macusani area, which will be inaugurated at the end of 2019. We are also building the new camp and internal roads. Meanwhile, Ausenco is making improvements in some processes and reviewing the mining plan, to optimize the capex. We believe that marginal products, both zinc and lead, can cover the costs of the operation. Despite the current price situation, we believe that in the long term silver will stabilize above US $ 18 per ounce (US$ / oz). If all goes well with the financing, we would be under construction in 2020.
What has been your strategy in the social issue?
The communities of Chacaconiza and Quelcaya, where the Corani project is located, are located between 4,800 and 5,200 meters above sea level. We identify three reasons why they settled in these places: first, the communities do not perceive the racism that occurs in centers of greater population. Second, the communities have about 50,000 alpacas throughout the Corani district. Although these did not generate large incomes, the possession and care of alpacas maintains a social structure. Finally, the community has its elected leaders. We understood that, if we managed to preserve these three aspects, the community would support the project.
With that problem in mind, what have been your lines of work?
Our goal has been to help communities progress and turn their challenges into competitive advantages. A challenge is the low economic income of the area. Each alpaca, at best, yields 2 kilos of fiber, at a rate of US$ 4 or US$ 5 per kilo (US$ / kg). With 100 alpacas they could earn $ 800 a year, and so they should complement it with the planting of some products. Through the use of silver wire, which has great conductive capacity and can eliminate bacteria, we have launched the first healthy clothing, garments that can prevent infections and amputations for diabetics, for example. We have also developed garments connected to applications to be able to measure pressure, temperature and pulse. Today, all alpaca fiber production is sold to Germany, France and the United States, at a rate of US$ 60 / kg.
Before these developments, we had to deal with another problem: 70% of alpacas died at birth. We did an investigation and discovered the excellent properties of flame immunoglobulins, so we set out to extract the essence and give it to the alpacas, drastically reducing the deadly effect that enterotoxins had. Today, the death rate of alpacas in the project area has dropped to 12%.
What other research projects have you been working on?
We have developed 108 inventions in the area: anti-pain creams, ichu houses with great thermal insulation capacity, and ichu sunscreens thanks to their high zinc content, among others. Currently, we are launching several patents: silver wire, immunoglobulin for alpacas, and plants that generate their own energy and ask for water when they need it through an application. In the area we have two research centers, where we are programming different applications, for example there are key chains that allow alpacas to be controlled. These projects have allowed people to grow academically, to the point that they understand and can explain the study of the environmental impact of the Corani project to the authorities that request it.
Do you feel the support of the community for the Corani project?
The communities of Chacaconiza and Quelcaya already gave us their unanimous support in the "previous consultation" (consulta previa). Once in operation, Corani must take care of the environmental and social issue, so it will use paste tailings. In any case, we want communities to develop as the ideal mining neighbor: the solution is not that they work for the mine, or make service companies. The solution is that they can grow and progress to solve the problems in the area and achieve sustainable development.