Land acquisition and compensation
5% equity stake
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 March 2014, CAO received a complaint from a local family who raised concerns about the land acquisition and compensation process regarding Yanacocha’s Minas Conga project. The family sold its land with the understanding that compensation would be recalculated if the mine project went forward. The family contends this commitment has gone unfulfilled. This is the seventh complaint filed with CAO regarding IFC’s Yanacocha project.
CAO found the complaint eligible for assessment in March 2014, and conducted a field visit in May 2014 to meet with the relevant parties. While the complainants expressed their interest to participate in a dispute resolution process, Yanacocha preferred to deal with this case directly using its own communication processes with the involved parties. Given the voluntary nature of the dispute resolution process, and per CAO’s Operational Guidelines, the complaint was referred to CAO Compliance for appraisal of IFC’s role.
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