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MINING ENGINEERING OCTOBER 2007 39 Richard W. Graeme and James J. Komadina Richard W. Graeme, member SME, is Vice President Government and Community Relations, Gold Fields La Cima, Lima, Perú, e-mail rgraeme@ goldfieldsghana.com. James J. Komadina, member SME, is senior Vice President, Development Projects with Gold Fields Exploration, Denver, CO, [email protected]. Developing Gold Fields’ La Cima Cerro Corona project in Peru G old Fields ac- quired an option to purchase the Cerro Corona project, located in Hualgayoc, Cajamarca Department, Peru, in December 2003. In January 2006, the op- tion was taken up and the transaction closed. During the interven- ing months, project de- velopment occurred against the backdrop of a presidential election, increasing national social activism and environ- mental regulation, rap- idly escalating operating and capital costs, as well as an unprecedented demand for engineering and technical skills. Proj- ect “Lessons Learned” are discussed in the con- text of an evolving strat- egy. The Cerro Corona project forms part of a porphyry copper-gold deposit situated within the Hualgayoc Mining District in northern Peru. It is lo- cated in the highest part of the Western Cordillera of the Andes, close to the headwaters of the Atlantic Continental Basin. It lies approximately 90 km (56 miles) by road north of the Department of Cajamarca’s capital city and near the village of Hualgayoc. Access to the Cerro Corona project from Cajamarca is by two roads, one from Cajamarca to the Yanacocha Mine 45 km (28 miles), and then from Yanacocha to the vil- lage of Hualgayoc and the town of Bambamarca 45 km (28 miles). In December 2003, Gold Fields, through a subsidiary, signed a defini- tive agreement to purchase an 80.7-percent economic and 92 percent voting in- terest in the Cerro Corona project from a Peruvian family-owned company, Sociedad Minera Corona S.A. (SMC). The agreement called for a reorganization in which the assets of the Cerro Corona project were transferred to a Peruvian company named La Cima S.A. in July 2004. The environmental impact assessment for the project was submitted to the Peruvian Ministry of Energy and Mines (MEM) in May 2005. Following public consul- tation and comment, MEM approved the environmental impact study in December 2005. Gold Fields subsequently completed the purchase of a 92-percent voting interest (80.7 percent economic interest) in the Cerro Corona Mine in January 2006, for a total consideration of $40 million and established Gold Fields La Cima (GFLC). GFLC acquired all requisite additional permits to construct the mine. Construction began in May 2006. Following seating of a new Peruvian national govern- ment in July 2006 and regional/local elections in Novem- ber 2006, communities in the Cajamarca Department have pressed existing operations, as well as GFLC, for greater involvement in the economic benefits of natural resource development. GFLC has accommodated these wishes through skills training, employment commitments, as well as the use of local contractors and equipment. Although community issues may arise from time to time, GFLC re- Concentrates from the Cerro Corona flotation circuit will be loaded and trucked to the port of Salaverry for shipment to Korea, Japan and Germany for smelting.

Developing Gold Fields’ La Cima Cerro Corona Project in Peru

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  • Mining engineering OctOber 2007 39

    Richard W. Graeme and James J. Komadina Richard W. Graeme, member

    SME, is Vice President Government and Community Relations, Gold Fields La Cima, Lima, Per, e-mail rgraeme@

    goldfieldsghana.com. James J. Komadina, member SME, is senior

    Vice President, Development Projects with Gold Fields Exploration, Denver, CO,

    [email protected].

    Developing Gold Fields La Cima Cerro Corona

    project in Peru

    Gold Fields ac-quired an option to purchase the Cerro Corona project, located in Hualgayoc, Cajamarca Department, Peru, in December 2003. In January 2006, the op-tion was taken up and the transaction closed. During the interven-ing months, project de-velopment occurred against the backdrop of a presidential election, increasing national social activism and environ-mental regulation, rap-idly escalating operating and capital costs, as well as an unprecedented demand for engineering and technical skills. Proj-ect Lessons Learned are discussed in the con-text of an evolving strat-egy.

    The Cerro Corona project forms part of a porphyry copper-gold deposit situated within the Hualgayoc Mining District in northern Peru. It is lo-cated in the highest part of the Western Cordillera of the Andes, close to the headwaters of the Atlantic Continental Basin. It lies approximately 90 km (56 miles) by road north of the Department of Cajamarcas capital city and near the village of Hualgayoc. Access to the Cerro Corona project

    from Cajamarca is by two roads, one from Cajamarca to the Yanacocha Mine 45 km (28 miles), and then from Yanacocha to the vil-lage of Hualgayoc and the town of Bambamarca 45 km (28 miles).

    In December 2003, Gold Fields, through a subsidiary, signed a defini-tive agreement to purchase an 80.7-percent economic and 92 percent voting in-terest in the Cerro Corona project from a Peruvian family-owned company, Sociedad Minera Corona

    S.A. (SMC). The agreement called for a reorganization in which the assets of the Cerro Corona project were transferred to a Peruvian company named La Cima S.A. in July 2004. The environmental impact assessment for the project was submitted to the Peruvian Ministry of Energy and Mines (MEM) in May 2005. Following public consul-tation and comment, MEM approved the environmental impact study in December 2005.

    Gold Fields subsequently completed the purchase of a 92-percent voting interest (80.7 percent economic interest) in the Cerro Corona Mine in January 2006, for a total consideration of $40 million and established Gold Fields La Cima (GFLC). GFLC acquired all requisite additional permits to construct the mine. Construction began in May 2006.

    Following seating of a new Peruvian national govern-ment in July 2006 and regional/local elections in Novem-ber 2006, communities in the Cajamarca Department have pressed existing operations, as well as GFLC, for greater involvement in the economic benefits of natural resource development. GFLC has accommodated these wishes through skills training, employment commitments, as well as the use of local contractors and equipment. Although community issues may arise from time to time, GFLC re-

    concentrates from the cerro corona flotation circuit will be loaded and trucked to the port of Salaverry for shipment to Korea, Japan and germany for smelting.

  • 40 OctOber 2007 Mining engineering

    mains committed to these programs to successfully build and operate the Cerro Corona Mine.

    The current schedule anticipates the completion of the flotation mill and the commencement of commercial pro-duction in early 2008 at a capital cost of US$337 million. Annual life of mine production will average approximately 10.2 t (330,000 oz) gold equivalent. Early year production will exceed 12.4 t (400,000 oz) gold equivalent due to higher than reserve copper grades being mined.

    GeologyThe Cerro Corona gold-copper porphyry deposit is

    centrally located within the Hualgayoc mining district of northwestern Peru. This well known district is reported to have been an important silver producing area since Inca times. More than 1.5 kt (50 million oz) of silver and significant amounts of lead, zinc and copper have been produced from vein and manto deposits following the Spanish conquest in the 16th century.

    Mineralization within the district is present in the form of gold-copper porphyry systems and temporally and spa-tially related gold-bearing, high-sulfidation deposits (the Tantahuatuay project, 8 km or 5 miles east of the Corona project) and base metal lode and replacement deposits with a possible link with concealed porphyry system in the Corona environments. These deposits formed in re-sponse to mid-Miocene magmatic-hydrothermal activity associated with the emplacement of a series of quartz diorite to granodioritic intrusives and the coeval Calipuy Supergroup volcanic units.

    The Cerro Corona porphyry and related epithermal vein and base metal lode and replacement deposits are hosted by an early to mid-Cretaceous, carbonate-predomi-nant sedimentary sequence that was folded, faulted and thickened during the late Eocene Incaic orogeny, produc-

    ing the orogen-parallel Mara-n thrust and fold belt. Other ore deposits hosted in similar tectonic settings in northern Peru include the world-class, high-sulfidation and related porphyry deposits of the Yana-cocha District and the world-class Antamina copper-zinc skarn deposit. The location of these deposits apparently co-incides with deflections in the strike of the Maran thrust and fold belt.

    The Cerro Corona gold-copper deposit is hosted by a 600- to 700-m- (1,900- to 2,300-ft-) diameter, subvertical, cylindrical-shaped quartz dio-rite porphyry stock emplaced into northwest-striking, south-west-dipping medium-bedded limestone and marls of the mid-Cretaceous Yumagual For-mation. Within the porphyry, gold-copper mineralization is primarily hosted by extensive zones of sheeted and stock-worked quartz pyrite mar-

    casite chalcopyrite bornite hematite magnetite veining.

    Based on cross-cutting relationships from field ob-servations, the veinlets have been classified into three types:

    A Type: early veinlets, from millimeters to centime-ters thickness, filled with quartz.

    B Type: intermediate age, from millimeters to cen-timeters wide crustified veinlets, filled with quartz-magnetite.

    D Type: late veins, from centimetres to decimetres wide, with quartz-chalcopyrite-pyrite.

    Early mineralization was accompanied by moder-ate to strong potassic alteration. It has been commonly overprinted by late, semi-pervasive argillic alteration and locally, by structurally controlled phyllic alteration assemblages (quartz-sericite-pyrite).

    Supergene oxidation and leaching at Cerro Corona have led to the development of a weak-to-moderate cop-per enrichment blanket, allowing for the subdivision of the deposit from the surface down into:

    The oxide zone. The mixed oxide-sulfide zone. The supergene enriched zone. The hypogene zone.

    The oxide zone is characterized by the lack of sulfide minerals and the almost complete removal of copper by supergene acid leaching and extends from the surface to depths of 10 to 40 m (33 to 131 ft).

    the cerro corona Mine in Peru is in an area that is believed to have been mined for silver since inca times.

  • Mining engineering OctOber 2007 41

    The mixed oxide-sulfide zone is up to 30 m (98 ft) thick. It contains iron oxide and sulfide minerals and erratic cop-per grades ranging from background levels to ore grades. Copper oxide, sulfate and silicate minerals are present locally within the mixed oxide-sulfide zone.

    The supergene zone is weakly to moderately devel-oped, ranging from a few meters to approximately 50 m (164 ft) in thickness. It is characterized by the partial to complete replacement of chalcopyrite, bornite and locally pyrite, by digenite, chalcocite and covellite. The lower limit of the supergene enrichment zone is marked by the disappearance of secondary copper sulfides.

    Hypogene mineralization extends from the base of supergene to depth. It is characterized by the presence of primary sulfide species such as chalcopyrite, pyrite, pyrrhotite, marcasite and bornite with trace amounts of molybdenite, sphalerite and galena present locally. Rem-nant anhydrite is also present in trace amounts.

    Limestone wall rocks are marblized or, more locally calc-silicated, for distances up to 10 m (33 ft) from the con-tact with the stock. Sulfide mineralization in the limestones is weak and decreases rapidly away from the contact. Skarn-type mineralization has been only locally identified in the wall rock limestone and in local rafts of limestone engulfed by the intrusive. The contact between the lime-stone and the intrusive is sharp, linear and uniform. Sills of the quartz diorite porphyry extend into the limestone wall rocks. Large limestone xenoliths up to 50 m (164 ft) in diameter occur near the outer limits of the stock.

    Two faulting systems, developed from defined struc-tures cut the Cerro Corona deposit. The first system has a northeast-southwest direction with a north 65 east aver-age azimuth and 86 southeast dipping; the second system has a northwest-southeast direction with a north 304 east average azimuth and 82 northeast dipping. A significant portion of the area is covered with fill material. So it was necessary to use the road-cuttings and drill platforms to identify these faults. The fracturing frequency average is approximately 10 to 25 fractures per linear meter. Fault behavior is different depending on the host rock compo-sition. In sedimentary rocks, covering approximately 10 percent of the area, faults form tectonic breccias and are relatively thinner; while in the remaining intrusive area, the faults are thicker and are gouge filled.

    MiningThe deposit will be mined by conventional surface min-

    ing methods generating a final surface mine areal extent of 900 x 500 m (2,952 x 1,640 ft). The mining operation will extend from the crest of the original hill at around 3945 RL to a final depth at around 3600 RL, relative to the general surface elevation in the area of between 3900 RL and 3770 RL.

    Bulk mining will use 10-m (33-ft) benches. Loading will be by a combination of a 230-t (253-st) diesel hydraulic face shovel and a 190-t (209-st) rubber-tired front-end loader loading six 150-t (165-st) and four 100-t (110-st) haul trucks. At this stage, it is assumed that all of the ma-terial requires drilling and blasting, though with varying powder factors, use 165 mm (6.6 in.) holes for 10 m (33 ft) benches. Smaller sized dedicated equipment is planned in the initial construction period for completing haul road, process plant and run-of-mine (ROM) pad earthworks.

    Ore will be trucked from the surface mine to the ROM

    stockpile requiring a 2-km (1.2-mile) haul at a maximum gradient of 1 in 10. Crusher feed will be 100 percent re-handled by front-end loaders to allow for material blend-ing for grade and material type. It has been estimated that potentially 30 percent of the ore could be tipped directly by haul trucks.

    Overburden material has been categorized (four types) based on its degree of weathering and its acid forming or neutralizing potential. While suitable material will be used to meet infrastructure requirements, the remaining mate-rial will require disposal in accordance with a structured overburden storage management plan.

    Geotechnical parametersSurface mine slope parameters are based on a review

    of the geotechnical work by Piteau during the earlier Bar-rick feasibility study and later by Coffey Geosciences for the GRD Minproc 2001 Cerro Corona DFS. The oxide materials are of relatively low competency, limestone beds hosting the porphyry intrusive are competent, major structures are generally steep, and the porphyry intrusive material varies from competent to low competency in cer-tain areas of severe alteration. Surface mine slopes have been based on the following inter-ramp angles:

    Oxide material 40. Competent limestone and porphyry intrusive 52.5. Low competent intrusive zone to the northeast

    35.5.

    ReservesGFLC performed a number of surface mine optimi-

    zations for the deposit to establish reserves. Proven and probable reserves are based on a US$10.93/g (US$375/oz) gold price and a 90 cents/lb copper price (Table 1). The deposit is geologically subdivided into four zones, and reserves are therefore presented by zone. The overburden component includes 7.27 t (8,011 st) of mineralized oxide at 1.39 g/t (0.04 oz/st) gold. Current reserve estimates are constrained by infrastructure capacity issues and have not been recalculated using higher metal prices.

    ProcessingCrushing. A ROM pad size of 15 to 20 days feed for 70

    percent rehandle and 30 percent direct tip of ROM ore has been derived from the difference between the production rate of the loading equipment and the throughput rate of the mill. Further consideration was given to the bulk nature of the deposit and the necessity to achieve tailing dam construction requirements. Three prime fingers will be established to maximize blending on the ROM pad. These will consist of soft, hard and high sulfur content material.

    Stockpiled ore will be reclaimed by front-end loader and fed into the crusher feed hopper. The nominated mining contractor has planned for two front-end loaders, with a third for backup, to be available for rehandling. This will allow for consistently maintaining a feed rate of 775 t/h (854 stph) up to a distance of 100 m (328 ft) from the crusher.

    The primary crushing stage has been designed to in-clude two operational lines with only one line being oper-ated at a time. While one line is operating, maintenance can be carried out on the other. Each operational line

  • 42 OctOber 2007 Mining engineering

    comprises a 300-t (330-st) live capacity dump pocket and a variable speed apron feeder to feed a 373-kW (500-hp) Abon mineral sizer. The product from the mineral sizer is transported to the semiautogenous grinding (SAG) mill by a 300-m (984-ft) long belt. The crushing circuit is expected to achieve some 99 percent system availability having two independent lines.

    Grinding. The grinding circuit is a conventional SAB, equipped with a SAG mill and ball mill operating in closed circuit with cyclones. The SAG mill is 7.3 m (24 ft) in diameter 4.4 m (14.6 ft) long and is powered by a 3.7-MW (5,000-hp) hyper-synchronous wound rotor motor. The SAG mill has been designed on a nominal operating ball loading of 10 percent and has a variable speed drive. The grate discharge type SAG mill is fitted with a 13-mm (0.5-in.) trommel screen that discharges into a common grinding mill sump.

    Cyclone feed pumps draw from the sump and pump to a cluster of eight operating (plus two standby) 660-mm (26-in.) hydrocyclones. The nominal P80 of the cyclone overflow is 120m for the supergene ore and 160m for the hypogene ore. The cyclone cluster underflow feeds a fixed speed overflow ball mill, 6 m (20 ft) in diameter and 10 m (34 ft) long, designed for a 38 percent ball loading as nominal charge. The ball mill is equipped with a dual pinion geared drive, having two 3.7-MW (5,000-hp) mo-tors. The size of the mill and the installed power allows the use of rubber liners and will be installed with such initially. An 800-m3 (28,250-cu ft) surge tank with agitator has been included between the grinding and flotation circuits to ensure a constant feed rate to the flotation cells.

    Flotation The flotation circuit produces a bulk chalcopyrite/

    pyrite concentrate from the rougher section. The concen-trate is then subjected to a se-lective separation process that involves regrinding, depression of the pyrite in a first stage cleaner, plus a cleaner-scaven-ger and a further three stages of cleaning to produce an accept-able concentrate grade, greater than 25 percent copper.

    The cyclone overflow from the grinding circuit flows to the rougher flotation cells with sev-en 160-m3 (5,650-cu ft) capacity cells. The installed residence time is more than 30 minutes. Rougher concentrate gravi-tates through a launder system to the regrind circuit that is equipped with four 354 kW (475 hp) stirred media detritor (SMD) to achieve the required concentrate P80 of 30 microns. Space has been allowed for the addition of a fifth SMD if it is found to be required. The regrinding circuit also receives the cleaner-scavenger concen-

    trate and the second cleaner tailing streams. Selective flotation is undertaken with the addition of

    a depressant and increase in pH. The concentrate from the first cleaners is treated in three stages of closed circuit cleaning. Each of the three cleaner stages has a nominal residence time of 13 minutes and progressively smaller installed capacity 50 m3 (1,766 cu ft) for first cleaner, 16 m3 (565 cu ft) for second and third cleaners and 8 m3 (282 cu ft) in the fourth stage. The concentrate from the fourth stage of cleaning is the final concentrate product.

    Tailing from the first cleaning stage reports to the cleaner-scavenger. The cleaner-scavenger consists of four 50-m3 (1,766-cu ft) cells with a total residence time of 13 minutes. The cleaner scavenger is in open circuit with concentrate reporting to the regrind mill feed and tailing to the tailing thickener. Final concentrate is pumped to a 16-m- (52-ft-) diameter high rate thickener and then to a filter feed stock tank. The concentrate is then filtered and transferred by conveyor to the concentrate stor-age building where five days production can be stored. Concentrates will be loaded and trucked to the port of Salaverry for shipment to Korea, Japan and Germany for smelting.

    Tailing thickening

    The cleaner scavenger tailing stream (around 10 percent to 20 percent of the mass on average) is pyritic and has the potential for acid generation. It will be sub aqueously impounded within the tailing dam interior to prevent oxidation.

    The rougher tailing will gravitate to a 40-m- (131-ft-) diameter high rate thickener. From there, the underflow slurry will gravitate to the tailing dam and the overflow will be used as process water in the plant. Tailing transporta-tion will use existing topography to avoid pumping.

    cerro corona tailing dam foundation.

  • Mining engineering OctOber 2007 43

    Reagents. The plant has been designed to pre-pare two types of collec-tor, one type of frother, a pyrite depressant and a pH modifier. The col-lectors are potassium amyl xanthate (PAX) and sodium dialkyl dithio-phosphate. The frother is methyl isobutyl carbi-nol (MIBC). The pyrite depressant is DDS3 (a mixture of quebracho, sodium cyanide and dex-trin), which will be used in modest amounts with no residual free cyanide remaining in the pro-cess supernatant. The pH modifier is milk of lime obtained from a slaking system using calcium ox-ide (CaO).

    Capital and schedule development

    Capital cost. A feasi-bility study commenced in early 2005 and in-volved a third party EPCM firm, input from selected vendors, as well as Gold Fields engineers and operators. In August 2005, with approximately 40 percent of the en-gineering completed, an initial capital estimate of US$277 million was generated.

    Significant exposure existed in three areas: EPCM services, tailing dam quantities and installed material costs, and plant site utilities/general services. Detailed engineering continued through to September 2006 when the final construction budget was completed.

    The three areas of concern did, in fact, represent the largest degree of cost growth. EPCM services increased by 20 percent from the feasibility estimate while the other two areas increased nearly 46 percent each. Rising fuel and input commodity costs, tightened geotechnical specifica-tions, failed construction assumptions, all coupled with a tight engineering labor market served to increase project capital costs to US$343 million, some 22 percent higher than first developed (Table 2).

    Project milestonesMajor project construction milestones are summa-

    rized. Establish 500 bed temporary man camp, June 2006. Begin Cerro Corona Mine development, August

    2006. Complete facilities construction platforms, February,

    2007. Complete additional 1,000 bed man camp, March

    2007. Set grinding mills, August 2007. Commission mill, December 2007. Complete tailing dam, December 2007. Ship first concentrates, March 2008.

    Environmental impact study The environmental impact study (EIS) was com-

    pleted by Knight Pisold and submitted in late May 2005. Through the propertys varied ownership, environmental baseline studies were initiated in 1995 by Knight Pisold and then updated in 1997. In 2000, Vector performed ad-ditional monitoring and verification of key environmental parameters. These included water quality, biological di-versity and archaeological heritage as well as community attitudes towards the project. Knight Pisold was com-missioned by GFLC to update its work as part of the ac-quisition due diligence process. Social Capital Group was retained by GFLC to review the social issues. An audit of the social programs and their effectiveness was conducted by Business for Social Responsibility.

    In May 2004, Gold Fields commissioned Montgomery Watson Harza (MWH) Peru to undertake a detailed re-view of available data in preparation for compiling the EIS. MWHs review identified (confirmed) a number of areas where updated or additional information was required including office work and site data collection. The main areas to be addressed included:

    Baseline air quality monitoring. Baseline noise and vibration monitoring. Improved rock characterization for AMD. Improved data relating to existing surface and un-

    derground water flows. Updated flora and fauna surveys. Updated socio-economic data. Improved analysis and presentation of existing

    data.

    In addition to the forgoing, a large amount of new,

    cerro corona primary crusher foundations.

  • 44 OctOber 2007 Mining engineering

    often confirmatory, data was gathered for the submitted study. Perhaps the most significant aspect of the new information was the detailed social baseline, which was included as a part of the study.

    As noted, the EIS was submitted to MEM for its review and approval in late May 2005. As part of the approval process, a public hearing was held in Hualgayoc in July 2005. It was well attended by a range of stakeholders, all of whom had the opportunity to comment or submit observations on the EIS. This was followed by a public comment period to allow for the participation of other interested parties as well as other governmental agencies. In all, more than 1,200 comments and observations were received and required response. To ensure completeness of the stakeholder process, GFLC individually answered each of the external observations. The responses to techni-cal and public consultation questions were filed in early November 2005, and subsequently the study was approved by MEM in December 2005.

    Closure plan. Within 12 months after EIS approval, a detailed closure plan must be submitted to MEM for approval. This will be the plan that will govern the final and full closure of the entire operation. Financial guarantees for closure are required to be filed one year after approval of the closure plan. The MEM may require a provisional guarantee from the titleholder at any time. The closure plan will be updated periodically as required with updated environmental data and with any significant change to the mine plan that affects the closure scheme.

    The EIS incorporates a conceptual closure plan for the operation. The principal objective is re-establishing a landscape that is environmentally and, where possible, aesthetically compatible with the surrounding country-

    side. The restoration plan will include all project installations including the surface mine, over-burden storages, tailing dam and administrative facilities. After closure, all installations will be physi-cally stable and will not represent any danger to public health. The water management program will continue to be main-tained until the effluent has demonstrated sus-tained compliance within the regulatory limits.

    Progressive, concur-rent rehabilitation of overburden storage lifts, access road cuttings, etc. will be incorporated into the plan. Knight Pisold made a preliminary ma-terial take-off based on the project drawings to determine the estimated magnitude of the closure effort as currently envi-

    sioned. Based on this work, US$14 million has been included in the financial model spread over two years following cessation of mining.

    Social interactionsSocial plan. GFLCs community relations plan (PRC)

    encompasses the projects various social management programs. Management programs have been developed according to the baseline results, the projects preliminary description and the previously prepared impact analysis. The proposed management measures aim at preventing adverse changes in the living conditions of the local popu-lation and at promoting the positive impacts of the Cerro Corona project on the area.

    The project PRC is one of a participative nature. The proposed management measures are basic policy guide-lines, to which the company will commit in accordance with the Peruvian legal framework, including Supreme Decree No. 042-2003-EM (Prior Commitment), international social impact management guidelines and standards, and the corporate social responsibility policies of the company. However, these guidelines must be translated into action plans to be developed in cooperation with the projects stakeholders.

    Objectives. The general objective of the PRC is to ensure that all proposed social management actions are identified, understood and implemented by the personnel involved in the Cerro Corona project, to ensure that the proposed vision and mission are fulfilled.

    The following are the specific objectives of the PRC:

    Manage the Cerro Corona projects social impacts in such a way that the positive effects are magnified and the negative effects are mitigated.

    cerro corona milling circuit.

  • Mining engineering OctOber 2007 45

    Establish guidelines for the management of the social impacts of the project, so they can become operational plans, with the participa-tion of the projects stakeholders.

    Develop and maintain positive and mutually beneficial relations between the company and the population of the Cerro Corona Project area of influence.

    Social programs. Depending on their aim, so-cial programs could be classified as social preven-tion programs or social development programs. Social prevention programs are those oriented to the mitigation of foreseeable negative impacts. Social development programs are aimed at boost-ing the foreseeable positive impacts and/or at the implementation of social responsibility policies by the projects principal.

    The social prevention programs forming part of the projects community relations plan are as follows:

    Workers community relations training pro-gram.

    Communication and consultation program. Program for health and safety in transport related

    activities. Rural roads and infrastructure improvement pro-

    gram. Closing social program.

    The social development programs forming part of the projects community relations plan are as follows:

    Local employment program. Local purchasing program. Program for the support of former land owners. Local authorities training program. Local development program. Improve local education to develop varied skills and

    encourage attendance.

    The Cerro Corona projects community relations plan also takes into consideration the implementation of partici-pative social monitoring to improve the understanding by the stakeholders of the projects foreseeable impacts and the measures needed for their management, improve the projects understanding of the concerns and perceptions of the stakeholders, take into consideration the concerns and perceptions of the stakeholders, and generate mutual trust, as well as promote mutual responsibility both on the part of the project as well as of the local stakeholders.

    The social programs will be adapted to the requirements of the projects areas of influence direct and indirect.

    Citizens consultation and participation procedure. As part of the Cerro Corona projects public consultation process, a public consultation and project EIS information disclosure plan has been developed with the targets being the projects previously identified stakeholders. The consul-tations were conducted in strict compliance with Peruvian Ministerial Resolution No. 596-2002-EM/DM, the MEM Community Relations Guide and the Good Practice Manual on Public Consultation and Information Disclosure of the

    International Finance Corporation (IFC World Bank).

    Objectives. The objectives of the Cerro Corona projects public consultation and information disclosure plan are as follows:

    Gather, identify and solve public concern issues through joint and cooperative efforts to be made with the stakeholders and openness towards their concerns and worries.

    Openly share timely, consistent and transparent information concerning the project and its plans. To promote and build understanding and long-term co-operation and trusting relationship with the projects stakeholders.

    Help the projects stakeholders to familiarize them-selves with the project and its personnel. Specifically, inform them about Minera Gold Fields experience in mining, as well as its values and culture, technical ca-pacity, environmental and industrial safety standards, and social responsibility policy. In addition, convey the projects commitment to dialogue and to permanently attempt to solve stakeholders concerns.

    Talk with the stakeholders about the identified impacts and proposed mitigation plans, so as to incorporate their concerns and opinions in the design of such plans.

    Establish communication channels and forums, as es-sential mechanisms, to solve differing points of view and the concerns of the population.

    Identify sustainable opportunities to contribute to local development in a participative manner.

    Components. The program includes six key compo-nents, in accordance with World Bank guidelines:

    Identification of stakeholders. Opportunities for stakeholder participation. Undertaking a social impact study. Identification and resolving the populations concerns

    and worries. Monitoring and evaluation of the consultation process.

    Diego Ortega, manager of community affairs. speaks with the el tingo community.

  • 46 OctOber 2007 Mining engineering

    Documentation of stakeholder participation and ac-cess to the projects information.

    Results of the public consultation process. The Cerro Corona projects consultation and EIS information disclo-sure plan has, so far, yielded the following results:

    The population has expressed support for the devel-opment of the project.

    The people have openly and transparently defined and put forth their concerns about the project.

    A majority of the peoples concerns about the project were resolved during the consultation rounds.

    Consultation meetings were carried out with an excel-lent level of participation on the part of stakehold-ers.

    The stakeholders underscored the value of the consultation meetings as vehicles for dialogue and participation.

    The consultation meetings represented an unprec-edented and new type of opportunity for the people to voice their concerns and problems, and to participate in the implementation of a mining project. The people stated that never before had they had the opportu-nity to participate and be consulted about a mining project.

    A relationship is being built between the project and the stakeholders based on trust, dialogue and mutual respect.

    Between the first and second consultation rounds, it was evident that the stakeholders had gained more knowledge about the project and that they were more involved in its development. Furthermore, unlike in the first round, in the second round it was agreed that modern mining, properly enforced, both internally and externally, can represent an opportunity for de-velopment without sustained long term impacts to the environment.

    SummaryFor the residents of the historic mining district of

    Hualgayoc, the unprecedented opportunity to partici-pate in the permitting process has been an uplifting and empowering experience. There is a sense of cooperation between the community, government and the company that never existed before. The people of this district, through open and public participation in the permitting process, have helped shape their future. The economic and employment opportunities they now have through the social commitments of GFLC to those in the area of influence are unprecedented in the centuries old history of the mining here.

    The participatory process for an EIS that carefully and appropriately considers all of the stakeholders can and will yield an environment where responsible mining activities can peacefully exist with the communities they are close to. Integral to this tranquillity are the concepts that there is a clear benefit to the local population and communities because of the mines presence, that the local residents had substantive input into the permitting process and that the

    channels of communication between the company and stakeholders are always open.

    The social interaction and impact mitigation aspect of GFLCs plan incorporates all of these concepts and more. It is through these avenues that the company will build and maintain a close, cooperative and mutually ben-eficial relationship with its neighbors in the nearby communities. n

    Acknowledgements The authors thank the manage-

    ment of Gold Fields Ltd. for the abil-ity to present this paper. They would further concede that without the dedi-cation and hard work of Gold Fields La Cima staff, consultants, regulatory agency personnel and the honesty of the community members, the success which is now evident, would not have been possible.

    Agricultural improvements are part of cerro coronas sustainable development plan.

    children dressed a miners take part in the Hualgayoc community childrens Parade.