Peru: Yanacocha-04/Cajamarca

Date Filed
22 Nov 2012
Status
Closed
Phase
Dispute Resolution (DR), Compliance
Country
Peru

Case Tracker

Eligibility
Eligibility
Assessment
Assessment
Dispute Resolution
Mediation
Transferred
Compliance
Appraisal
Closed
CURRENT Status
Appraisal (COMPLIANCE)
Closed

Complaint Overview

Complainant

Local family

Concerns

Land compensation and land rights

Cross-Cutting Issues
Land Resettlement Indigenous Peoples Land Loss of Livelihoods

Project Information

Region
Latin America & the Caribbean
Institution
IFC
Name & Number
Yanacocha 2983
Company
Minera Yanacocha S.A.
Sector
Mining, Oil, Gas and Chemicals
Department
Other
Category
A
Commitment

5% equity stake

Synopsis

Complaint

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 Action

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.

Status

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

Case Documents

  • Dispute Resolution

    Complaint
    Complaint(redacted)
    Nov 22, 2012
    Spanish
    Complaint(redacted)
    Assessment Report(s)
    CAO Assessment Report regarding local concerns in relation to IFC's Yanacocha project #2983 in Cajamarca
    May 01, 2013
    English
    CAO Assessment Report regarding local concerns in relation to IFC's Yanacocha project #2983 in Cajamarca
    Informe de Evaluación de la CAO: En cuanto a las preocupaciones locales sobre el proyecto Yanacocha de la IFC (2983) en Cajamarca
    May 01, 2013
    Spanish
    Informe de Evaluación de la CAO: En cuanto a las preocupaciones locales sobre el proyecto Yanacocha de la IFC (2983) en Cajamarca
    IFC Response to CAO Assessment Report
    May 03, 2013
    English
    IFC Response to CAO Assessment Report
    Close-out Report(s)
    CAO Conclusion Report Yanacocha-04
    Feb 01, 2014
    English
    CAO Conclusion Report Yanacocha-04
    CAO Conclusion Report Yanacocha-04
    Feb 01, 2014
    Spanish
    CAO Conclusion Report Yanacocha-04
  • Appraisal Report(s)
    CAO Compliance Appraisal Report Yanacocha-04 to 07
    May 01, 2015
    English
    CAO Compliance Appraisal Report Yanacocha-04 to 07
    CAO Compliance Appraisal Report Yanacocha-04 to 07
    May 01, 2015
    Spanish
    CAO Compliance Appraisal Report Yanacocha-04 to 07