Peru: Yanacocha-05/Cajamarca

Date Filed
07 Jun 2013
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

The Cerna Sanchez Family

Concerns

Land compensation and land rights

Cross-Cutting Issues
Land Resettlement Land

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 May 2013, CAO received a complaint from several members of a family in Cajamarca who are concerned about lack of compensation for lands owned by their family, which they claim has prevented them from reaping its benefits.  The complainants also state that the company never provided compensation for said lands. 

CAO Action

CAO found the complaint eligible for assessment in May 2013.  The assessment concluded in October 2013 with the family and the company agreeing to engage in a voluntary dispute resolution process facilitated by CAO.  This is captured in CAO's Assessment Report, which is available under "View Documents" below.

In preparation for dialogue, CAO held separate capacity building workshops with the parties, and helped them design a joint process for addressing the issues in the complaint.  The parties set up a smaller working group which included representatives of the family and the company, and met on a monthly basis to review documentation and establish facts.  In May 2014, the working group reported that they had reached an impasse.  As there was no agreement by the parties on how to overcome the impasse, or reach a common understanding, the dispute resolution process was brought to an end. 

As per its Operational Guidelines, CAO has referred this case to its Compliance function for appraisal of IFC's performance with regard to the project.

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
    Letter of Complaint(redacted)
    Jun 25, 2013
    Spanish
    Letter of Complaint(redacted)
    Assessment Report(s)
    CAO Assessment Report Yanacocha
    Oct 05, 2013
    English
    CAO Assessment Report Yanacocha
    CAO Assessment Report Yanacocha
    Oct 05, 2013
    Spanish
    CAO Assessment Report Yanacocha
    IFC Formal Response _ CAO Assessment Report
    Oct 17, 2013
    English
    IFC Formal Response _ CAO Assessment Report
    Close-out Report(s)
    CAO Conclusion Report
    Jul 25, 2014
    English
    CAO Conclusion Report
    CAO Conclusion Report
    Jul 25, 2014
    Spanish
    CAO Conclusion Report
  • Appraisal Report(s)
    CAO Compliance Appraisal Report Yanacocha-04 to 07
    May 29, 2015
    English
    CAO Compliance Appraisal Report Yanacocha-04 to 07
    CAO Compliance Appraisal Report Yanacocha-04 to 07
    May 29, 2015
    Spanish
    CAO Compliance Appraisal Report Yanacocha-04 to 07