Land compensation and land rights
Minera Yanacocha S.R.L. is a large open-pit gold mine located in the Andes mountains in the Department of Cajamarca, Peru. The Company is engaged in the exploration and production of gold. Over a period from 1993 to 1999, IFC committed three loans to finance the capital expenditure programs for three of the company’s mines, Carachugo, Maqui Maqui, and La Quinua. In parallel, IFC made an equity investment for a 5% ownership stake in the Company, which it continues to hold.
In November 2012, CAO received a complaint from several members of a family in Cajamarca who are concerned about a lack of compensation for lands owned by their grandfather. The complainants state that the company never provided compensation as had been promised, and is currently acting to deny the family’s rights to just compensation over said land.
CAO found the complaint eligible in December 2012. Following an assessment in early 2013, the parties agreed to engage in a dispute resolution process facilitated by CAO. After initial meetings in May 2013, the mediation started in September 2013. Several rounds of mediation meetings took place between September 2013 and February 2014. As part of the process, a working group comprising of family and company representatives was convened to discuss the technical aspects of the disputed lands. However, neither the work of the working group, nor the attempt at direct negotiations led to an agreement between the parties. The mediation finally came to an end in February 2014 and CAO’s dispute resolution process was therefore brought to a close. In line with CAO’s Operational Guidelines, the case was subsequently transferred to the CAO Compliance function for appraisal.
In May 2015, CAO published a Compliance appraisal report regarding IFC's investment in Yanacocha and considering four separate complaints (04, 05, 06 and 07). CAO has determined that an investigation was not merited and has closed the four cases.
CAO's Compliance appraisal report, providing a full description of CAO's decision with regard to this case, is available under "View Documents" below. As of May 29, 2015, CAO has closed the case with no further action.
Status as of May 29, 2015