Yanacocha - Project Conga - Executive Summary (Inglish)

8/3/2019 Yanacocha - Project Conga - Executive Summary (Inglish)

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Minera Yanacocha S.R.L.Conga Project

Environmental Impact Study

Executive Summary

February 2010

prepared for:

Minera Yanacocha S.R.L.Av. Vctor Andrs Belande N 147,

Va Principal 103, Edificio Real Diez, Piso 4,San Isidro, Lima 27, Per

Telephone: (511) 215-2600

prepared by:

Knight Pisold Consultores S.A.Calle Aricota 106, 5 Piso

Santiago de Surco, Lima 33, PerTelephone: (511) 202-3777Facsimile: (511) 202-3778


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Minera Yanacocha S.R.L.

Conga ProjectEnvironmental Impact Study

Executive Summary

Table of Contents

Page

Executive Summary ................................................................................................ ES-1

Section 1.0 - Background and Legal Framework .................................................... 1-11.1 Introduction ................................................................................................................................... 1-11.2 History of Operations Carried Out in Conga ................................................................................. 1-21.3 Current Activities at Conga ........................................................................................................... 1-21.4 Legal Framework Supporting the EIS ........................................................................................... 1-2

1.4.1 General Peruvian Regulations ...................................................................................... 1-31.4.2 Specific Rules Applicable to the Conga Project ............................................................ 1-4

Section 2.0 - General Description of the Project ..................................................... 2-1Section 3.0 - Delimitation of the Environmental and Social Area of Direct Influence

and Area of Indirect Influence ................................................................................... 3-13.1 Areas of Environmental Influence ................................................................................................. 3-13.2 Areas of Socio-economic Influence .............................................................................................. 3-3

3.2.1 Determination of the Area of Direct Influence ............................................................... 3-3Section 4.0 - Geographical, Environmental and Human Interest Characteristics 4-14.1 Physical Environment .................................................................................................................... 4-1

4.1.1 Location ......................................................................................................................... 4-14.1.2 Geomorphology and Relief ........................................................................................... 4-14.1.3 Climate and Meteorology .............................................................................................. 4-24.1.4 Air Quality ...................................................................................................................... 4-24.1.5 Noise and Vibration ....................................................................................................... 4-34.1.6 Geology and Seismicity ................................................................................................. 4-34.1.7 Soils ............................................................................................................................... 4-34.1.8 Surface Water ............................................................................................................... 4-44 1 9 Groundwater 4-4


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Section 5.0 - Project Components ............................................................................ 5-15.1

Infrastructure ................................................................................................................................. 5-1

5.1.1 Mine Facilities................................................................................................................ 5-15.1.2 Processing Facilities ..................................................................................................... 5-15.1.3 Tailings Storage Facility ................................................................................................ 5-15.1.4 Ancillary Facilities and Access Roads .......................................................................... 5-2

5.2 Labor Requirement ....................................................................................................................... 5-2Section 6.0 - Possible Environmental and Social Impacts ..................................... 6-16.1 Environmental Impacts Analysis ................................................................................................... 6-1

6.1.1 Relief and Geomorphology ........................................................................................... 6-16.1.2 Soils ............................................................................................................................... 6-16.1.3 Air Quality ...................................................................................................................... 6-16.1.4 Noise and Vibrations ..................................................................................................... 6-16.1.5 Surface Water ............................................................................................................... 6-16.1.6 Groundwater.................................................................................................................. 6-26.1.7 Flora and Vegetation ..................................................................................................... 6-26.1.8 Terrestrial Fauna ........................................................................................................... 6-26.1.9 Aquatic Life.................................................................................................................... 6-26.1.10 Landscape ..................................................................................................................... 6-36.1.11 Pongo-Conga Corridor .................................................................................................. 6-3

6.2 Socio-economic Impacts ............................................................................................................... 6-36.2.1 Identification of Impacts ................................................................................................ 6-36.2.2 Impact Assessment and Rating .................................................................................... 6-4

Section 7.0 - Preventive, Control, and Mitigation Measures ................................... 7-17.1 Impact Mitigation Measures .......................................................................................................... 7-2

7.1.1 Impact Mitigation Geomorphology and Relief ............................................................ 7-27.1.2 Impact Mitigation Air Quality ...................................................................................... 7-27.1.3 Impact Mitigation Noises and Vibration ...................................................................... 7-27.1.4 Impact Mitigation Soils ............................................................................................... 7-37.1.5 Impact Mitigation Surface Water ................................................................................ 7-37.1.6 Impacts Mitigation Groundwater ................................................................................ 7-77.1.7 Impacts Mitigation Flora and Vegetation .................................................................... 7-87.1.8 Impacts Mitigation Terrestrial Fauna ........................................................................ 7-107.1.9 Impacts Mitigation Aquatic Life ................................................................................ 7-107.1.10 Impacts Mitigation Landscape ................................................................................. 7-107.1.11 Impacts Mitigation Road Traffic ............................................................................... 7-11

7.2 Solid Waste Management Plan ................................................................................................... 7-137.3 Emergency and Contingency Response Plan ............................................................................ 7-14Section 8.0 - Social Baseline Summary .................................................................... 8-18.1 General Study Area ....................................................................................................................... 8-1

8.1.1 Demography .................................................................................................................. 8-1


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8.2 Specific Study Area ....................................................................................................................... 8-68.2.1 Demography .................................................................................................................. 8-68.2.2 Characteristics of Household Members ........................................................................ 8-68.2.3 Housing Characteristics ................................................................................................ 8-68.2.4 Education ...................................................................................................................... 8-78.2.5 Health ............................................................................................................................ 8-88.2.6 Employment .................................................................................................................. 8-98.2.7 Economic Activities ....................................................................................................... 8-98.2.8 Perceptions ................................................................................................................. 8-108.2.9 SSA Water Sources .................................................................................................... 8-11

8.3 Stakeholders ............................................................................................................................... 8-118.4

Area of Direct Influence............................................................................................................... 8-11

Section 9.0 - Summary of the Community Relations Plan ...................................... 9-19.1 Specific Community Relations Plan .............................................................................................. 9-1

9.1.1 Infrastructure and Basic Services for Development ...................................................... 9-29.1.2 Economic Development ................................................................................................ 9-29.1.3 Health and Nutrition ...................................................................................................... 9-29.1.4 Education ...................................................................................................................... 9-29.1.5 Institutional Strengthening............................................................................................. 9-3

9.2 Social Impact Management Plan .................................................................................................. 9-39.2.1 Construction of the New North-South and East-West Corridors ................................... 9-39.2.2 Road Safety Plan .......................................................................................................... 9-49.2.3 Land Acquisition Social Support Program (LASSP) ..................................................... 9-49.2.4 Code of Conduct for Workers, Contractors and/or Consultants ................................... 9-49.2.5 Culture and Local Customs Promotion Policy ............................................................... 9-49.2.6 Local Contracting and Purchasing Policy ..................................................................... 9-49.2.7 Local Employment and Training Plan (LETP) ............................................................... 9-59.2.8 Government capacity building in design and management of local development projects

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9.3 Social Communication Plan .......................................................................................................... 9-59.3.1 Internal Communication Plan ........................................................................................ 9-69.3.2 External Communication Plan ....................................................................................... 9-6

9.4 Participatory Social and Environmental Monitoring Plan (PSEMP) .............................................. 9-69.4.1 Phases for the PSEMP Preparation and Implementation ............................................. 9-6

Section 10.0 - Conceptual Closure Plan ................................................................. 10-110.1 Progressive Closure .................................................................................................................... 10-110.2 Final Closure ............................................................................................................................... 10-110.2.1 Dismantling.................................................................................................................. 10-1

10.2.2 Demolition, Salvage and Disposal .............................................................................. 10-110.2.3 Physical Stability ......................................................................................................... 10-110.2.4 Chemical Stability ........................................................................................................ 10-210.2.5 Land Shape Restoration ............................................................................................. 10-310.2.6 Revegetation ............................................................................................................... 10-3


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List of ChartsChart 1 Area of Direct Influence (ADI)

Chart 2 Area of Indirect Influence (AII)Chart 3 Modifications in the Storage Capacity of Lentic Streams Due to the ProjectChart 4 Population, Surface Area, And Population DensityChart 5 Housing Water SuppliesChart 6 Illiteracy RateChart 7 Number of Health FacilitiesChart 8 Population Distributions According to the Employed EAP, Unemployed EAP, and Non-EAPChart 9 Hamlet Populations According to the Scope of the StudyChart 10 Heads of Household Distributions According to Gender

Chart 11 Types of Housing Water SuppliesChart 12 Education Level Achieved in Population Over 15 Years OldChart 13 Numbers of Sick People in the Last 15 DaysChart 14 Population Distributions According to WAP, EAP and Non-EAPChart 15 Numbers and Average Size of Agricultural Units (AU)

TablesTable 1 Environmental Impact Matrix Construction StageTable 2 Environmental Impact Matrix Operation Stage

Table 3 Social Impact MatrixTable 4 Summary of Mitigation MeasuresTable 5 Environmental Monitoring Plan

GraphicsGraphic 1 Preliminary Schedule of Project Development

FiguresFigure 1 General Location of the Project

Figure 2 General Layout of the ProjectFigure 3 Area of Direct and Indirect Influence of the Project Based on the Environmental Componentof Greater Relevance Construction Stage

Figure 4 Area of Direct and Indirect Influence of the Project Based on the Environmental Componentof Greater Relevance Operation Stage

Figure 5 Area of General Study (AGS)Figure 6 Area of Specific Study (ASS)Figure 7 Area of Social Direct Influence (ASDI)Figure 8 Area of Social Indirect Influence (ASII)


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Minera Yanacocha S.R.L.

Conga ProjectEnvironmental Impact Study

Executive Summary

Section 1.0 - Background and Legal Framework

1.1 Introduction

The Conga Project is located approximately 73 km northeast of the city of Cajamarca and 585 km fromthe city of Lima, in the districts of Sorochuco and Huasmn in the Province of Celendn and in the Districtof La Encaada in the Province of Cajamarca (Figure 1). The area associated with the development ofthe mining project is located in the region of Jalca, at an elevation that ranges between 3,700 to4,262 meters.

The owner of the Conga Project (the project) is Minera Yanacocha S.R.L. (MYSRL). The followingcompanies are partners in the project: Compaa de Minas Buenaventura (CMB), Newmont MiningCorporation (Newmont) and the International Finance Corporation (IFC). For the purposes of thisdocument the owner of the project shall hereinafter be referred to as Minera Yanacocha S.R.L., or itsabbreviation MYSRL.

As it is currently defined the Conga Project consists of two porphyry deposits, Perol and Chailhuagnwhich will be mined using traditional open pit methods. The copper-gold-bearing ore will be processed byconventional crushing, milling, and flotation processing methods at the plant with a nominal capacity of

92,000 tons per day (tpd). The current resource identified is 3.1 billion pounds of copper and 11.6 millionounces of gold. The projected mine life is 19 years including 2 years of pre-stripping and 17 years ofprocessing. Concentrates will be transported by truck to Salaverry port, located on the north coast ofPeru for dispatch to the international market.

The proposed infrastructure includes the Perol and Chailhuagn pits, the Perol and Chailhuagn wasterock facilities, ore processing facilities, tailings management facilities, water reservoirs, borrow materialareas, and topsoil stockpiles, among other ancillary facilities, which will comprise a total area ofapproximately 2,000 hectares. Power will be distributed via the construction of a 220 kV power line fromthe Cajamarca Norte sub-station.

Mining of the Chailhuagn pit will start the first year of the projects operation and will last approximately14 years, during which 160 million tons (Mt) of ore will be processed. Mining of the Perol pit will becarried out during the entire life of the project and mining will last approximately 19 years, during which344 Mt of ore will be processed over 17 years. The main access road for the project construction andoperations will mostly use the same alignment as the road currently being used for Conga Projectexploration activities


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1.2 History of Conga Operations

The first exploration activities at the Conga Project began with the purpose of discovering additional golddeposits near the Yanacocha complex. In 1991 the Chailhuagn and Perol deposits (25 km northeast ofthe Yanacocha complex) were discovered by CEDIMIN (Compaa de Exploraciones, Desarrollo eInversiones Mineras). Between 1994 and 2000, CEDIMIN carried out additional exploration activities forboth deposits. In 2001, after the acquisition of CEDIMIN by CMB, the Conga Project joined the operationsof the Yanacocha complex under the administration of MYSRL. Since then, MYSRL conducted thenecessary geotechnical and hydrogeological studies and managed the permitting and land acquisitionnecessary for the start-up of the complete exploration campaign. These permits involved researchprojects and the rescue of archaeological sites in the project area, as well as those permits for the use ofwater, energy, and fuel supply during execution of exploration activities and construction of a camp with

an induction and training program for the workers of the project.

By 2004, exploration activities resulted in positive economics for both the Chailhuagn and Peroldeposits, and based on such results the development of the Conga Project was decided. Initialenvironmental baseline studies were conducted from 2005 to 2007 and updated from 2008 to 2009. Thefeasibility study for the project was also completed between 2008 and 2009.

In 2008 by means of Directorial Resolution N 243-2008-MEM/AAM, the semi-detailed EnvironmentalImpact Study (sdEIS) for the Conga Exploration Project was approved.

Subsequently, in April 2009, by means of Directorial Resolution N 081-2009-MEM/AAM, the FirstModification of the semi-detailed Environmental Impact Assessment (sdEIS) for the Conga ExplorationProject was approved, and then a Second Modification was submitted.

1.3 Current Activities in Conga

Much of the area where the Conga Project is located (and areas surrounding the project) is near an activemining area. Currently, MYSRL is operating in two geographic zones, the west zone (Cerro Negro, LaQuinua and Cerro Yanacocha) and the east zone (Carachugo and Maqui Maqui). Open pit mining iscarried out in these five mining zones using a heap leaching process. In addition, there is a productionplant, called the Gold Mill, which processes a sand deposit in the La Quinua mining zone. Currently,MYSRL is gradually closing three pits.

The Conga Project zone will be accessed via the Maqui Maqui mining zone. This access road, which iscurrently being used for exploration activities, will be upgraded to serve as the main access road forconstruction and operation of the Conga Project. The Conga Project is part of the mining district thatcontains different copper and gold deposits, most of which belong to MYSRL. There are other depositssuch as El Galeno and Michiquillay, owned by companies Lumina Copper S.A.C. and Anglo American,

respectively.

1.4 Legal Framework Supporting the EIS

Within the national legislation, the most important laws related to environmental protection for miningprojects correspond to Title Fifteen of the Single Amended Text of the General Mining Law (SupremeDecree N 014-92-EM) and the Regulations on Environmental Protection in Mining Metallurgical


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Spanish) and the General Office of Social Management of the MEM were considered. The guidelinesfrom the Guide to prepare Environmental Impact Studies of the MEM were also considered.

There are general rules applicable nationwide to different productive activities, such as the WaterResources Law (Law N 29338), National Environmental Quality Standards for Water (Supreme DecreeN 002-2008-MINAM), the Regulations on National Environmental Quality Standards for Air (SupremeDecree N 074-2001-PCM, Supreme Decree N 069-2003-PCM, Supreme Decree N 003-2008-MINAM),the Regulations on National Environmental Quality Standards for Noise (Supreme Decree N 085-2003-PCM) and the Natural Protected Areas Law (Law N 26834), which have been quoted in each relevantsection of the EIS.

Additionally, MYSRL environmental and social responsibility policies and guidelines are considered,based on the commitment to improve its safety, occupational health, and environmental performancethrough the ongoing implementation, operation, and improvement of its management system.

The following is the legislation that applies to the EIS. For educational purposes, the evaluated rules aredivided as follows: General Peruvian Regulations and Specific Regulations applicable to the CongaProject.

1.4.1 General Peruvian Regulations

Constitution of the Republic of Peru (1993)

General Environmental Law (Law N28611)

Legal Framework for Private Investment Growth (Legislative Decree N757-1991)

Law on Environmental Impact Assessment of Works and Activities (Law N 26786)

Organic Law for the Sustainable Use of Natural Resources (Law N 26821)

Conservation and Sustainable Use of Biological Diversity Law (Law N 26839)

Law that establishes the National Environmental Impact Assessment System (Law N 27446)

Legal Framework of the National Environmental Management System (Law N 28245)

Cases in which the approval of Environmental Impact Studies and Environmental Management andEnhancement Programs requires the technical opinion of the INRENA (Supreme Decree N056-97-PCM, amended by Supreme Decree N061-97-PCM)

National Environmental Assessment and Auditing System Law (Law N29325)

Act of Incorporation, Organization and Duties of the Ministry of Environment (Legislative Decree N1013)

National Environmental Policy (Supreme Decree N012-2009-MINAM) Title XIII of the Criminal Code, Crimes against Ecology (Legislative Decree N 635)

Water Resources Law (Law N 29338)

National Environmental Quality Standards for Water (Supreme Decree N 002-2008-MINAM)

It is ordered that the Water Authority controls the use of materials that water hauls and deposits in itsi b d h l (L N26737)


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Guidelines for the preparation of contingency plans to be used in mining metallurgical activities relatedto the handling of cyanide and other toxic or hazardous substances (Directorial Resolution N 134-2000-

EM/DGM) Law that governs Land Transport of Materials and Hazardous Waste (Law N 28256)

National Regulations on Land Transport of Materials and Hazardous Waste (Supreme Waste N 021-2008-MTC)

National Cultural Heritage General Law (Law N 28296) and its regulations (Supreme Decree N011-2006-ED)

Archaeological Research Regulations (Supreme Resolution N 004-2000-ED)

Amendment of Supreme Decree N 004-2009-ED, which establishes terms for the preparation, approvalof final reports of archaeological assessment projects and the certification of Inexistence ofArcheological Remains (Supreme Decree N 009-2009-ED)

Special procedures for the implementation of Supreme Decree N 009-2009-ED (Guideline N 004-2009-DN/INC)

Approval of the Agreement on Biological Diversity adopted in Rio de Janeiro (Legislative Resolution N26181)

Forest and Wildlife Law and its regulations (Legislative Decree N 1090 and Supreme Decree N 014-2001-AG)

Approval of the National Wetland Conservation Strategy in Peru (Administrative Resolution N 054-96-INRENA)

Farming Communities Law and its regulations (Law N 24656 and Supreme Decree N 008-91-TR)

Private Investment Law for the Development of Economic Activities carried out in the National Territoryand on the Lands of Farming and Native Communities (Law N 26505, amended by Law N 26570 andLaw N 29261)

Law on the Foundations of Decentralization (Law N 27783)

Municipal Organic Law (Law N 27972)

Regulations on Land and Urban Development (Supreme Decree N 027-2003-VIVIENDA)

General Law on Solid Waste (Law N27314) and amendment (Legislative Decree N 1065)

Regulations on the General Law on Solid Waste (Supreme Decree N 057-2004-PCM)

Regulations on the National Environmental Quality Standards for Air (Supreme Decree N074-2001-PCM, Supreme Decree N069-2003-PCM, Supreme Decree N 003-2008-MINAM)

Regulations on the National Environmental Quality Standard for Noise (Supreme Decree N 085-2003-

PCM) Classification of Endangered Species of Wild Flora (Supreme Decree N043-2006-AG)

Classification of Endangered Species of Wild Fauna and the Ban on Animal Hunting, Capture,Ownership, Transport or Export for Commercial Purposes (Supreme Decree N 034-2004-AG)

Organic Law governing Hydrocarbon Activities in the National Territory (Law N 26221)

In estment Promotion La in the Agric lt re Sector (La N 26797)


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N 059-93-EM, 029-99-EM, 058-99-EM and 022-2002-EM)

Regulations for Citizen Participation in the Mining Sub-sector (Supreme Decree N028-2008-EM)

Rules regulating the Citizen Participation Process in the Mining Sub-sector (Ministerial Resolution N304-2008-MEM/DM)

Regulations on transparency, access to public environmental information and citizen participation andconsultation in environmental matters (Supreme Decree N 002-2009/MINAM)

Maximum Allowable Levels of Elements and Compounds existing in Gas Emissions from MiningMetallurgical Units (Ministerial Resolution N 315-96-EM/VMM)

Maximum Allowable Levels of Liquid Effluents in Mining Metallurgical Activities (Ministerial Resolution

N 011-96-EM/VMM) Law on Mine Closure (Law N 28090, amended by Law N 28234 and Law N 28507)

Regulations of the Law on Mine Closure (Supreme Decree N 033-2005-EM, amended by SupremeDecree N035-2006-EM and Supreme Decree N045-2006-EM)

Regulations on Mining Safety and Hygiene (Supreme Decree N 046-2001-EM)

Law for Electrical Concessions and its regulations (Decree Law N 25854 and Supreme Decree N 009-93-EM)

Rule on Easement Imposition (Ministerial Resolution N 111-88-EM)

General Law on Transport and Road Traffic (Law N 27181, amended by Legislative Decree N 1051)

Maximum Allowable Limits of Contaminant Emissions for Motor Vehicles in the Road System (SupremeDecree N 047-2001-MTC)

Regulations on Weight and Dimensions of Vehicles in the National Road System (Ministerial ResolutionN 375-98-MTC)

Commitment as a preliminary requirement for the development of mining activities and supplementaryrules (Supreme Decree N 042-2003-EM)

The EIS of the Conga Project is submitted to the MEM, the General Bureau of Environmental Affairs ofthe Ministry of Agriculture (MINAG), the Regional Bureau of Energy and Mines of Cajamarca (DREM Cajamarca), the Regional Government of Cajamarca, the Provincial Municipalities of Cajamarca andCelendn, the District Municipalities of La Encaada, Sorochuco and Huasmn and the FarmingCommunity of Huangashanga. Through these institutions, the complete text of the EIS, in which thisExecutive Summary is included, may be reviewed at the following institutions:

General Bureau of Mining Environmental Affairs of the Ministry of Energy and Mines (DGAAM MEM),

located at Av. Las Artes N260, San Borja Lima. General Bureau of Environmental Affairs of the Ministry of Agriculture (MINAG), located at Calle

Diecisiete N355, San Isidro Lima.

Regional Office of Energy and Mines of Cajamarca (DREM Cajamarca), located at Jr. MiguelGonzles Lt. 5, 3er piso, Urbanizacin Horacio Zevallos Cajamarca.

Regional Government of Cajamarca, located at Jr. Santa Teresa de Journet N351, Urbanizacin La


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District Municipality of Huasmn, located at Jr. Arequipa N 047, Plaza de Armas, Celendn Cajamarca.

Office of the Farming Community of Huangashanga.

Information and Culture Center of Minera Yanacocha, located at Jr. El Comercio N251, Cajamarca Cajamarca.

All the opinions and queries regarding this study, submitted through the official channels and within theterms established by the laws in force, are considered in the decision-making process of the MEM.

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Section 2.0 - General Description of the Project

MYSRL plans to develop the Conga Project, which will consist of developing two gold-bearing (Au)porphyry copper (Cu) deposits located east of the area where MYSRL currently operates the Yanacochacomplex. The area contains a series of other porphyritic deposits in a well-defined mineralization belt.The project contains approximately 1,085 Mt of material (ore, waste rock and low grade ore), equivalentto 504 Mt of material projected over 19 years of mining (including pre-stripping). The ore processing ratewill be 92,000 tons per day.

To date, geological explorations and the mining plan have determined that the Perol deposit contains a

reserve of 344 Mt of ore and the Chailhuagn deposit has a reserve of 160 Mt, with an average coppergrade of 0.28 percent and an average gold grade of 0.72 grams per ton.

As previously mentioned, the Conga Project consists of an open pit mine with copper and gold reserves,located north of the Peruvian Andes, in the districts of Sorochuco and Huasmn in the province ofCelendn and in the district of La Encaada in the province of Cajamarca, department of Cajamarca(Figure 1).

The ore to be extracted from the pits will be transported to the crushing and processing facilities. The ore

will be crushed and ground and will then be sent to a conventional flotation circuit to produce a gold-and-silver-bearing copper concentrate. The concentrate will be trucked to the Salaverry port, located on thenorth coast to be dispatched to the international market.

In the following sections, the activities planned for the construction and operation of the Conga Project willbe described, as well as the labor requirements in these stages. Figure 2 shows the general layout of theproject.

Graph 1 shows the activities schedule foreseen for the various execution stages of the Conga Project.


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Section 3.0 - Delimitation of the Environmental and Social Area of

Direct Influence and Area of Indirect Influence

3.1 Areas of Environmental Influence

Two areas of influence have been defined for the Conga Project: the area of direct influence and the areaof indirect influence.

The Area of Direct Influence (ADI) is defined as the area in the footprint of the project where the mostsignificant impacts, either negative or positive, will occur (usually associated with direct impacts). The

Area of Indirect Influence (AII) is defined as the area where less significant impacts (typically associatedwith indirect impacts) will occur.

It is worth mentioning that in order to measure the areas of influence of each component, an impactassessment was carried out in the entire area of study of the Conga Project, and based on such resultsthe areas of influence specific to each component were prepared. The areas of influence have beenidentified taking into account the effect of the mitigation measures foreseen to counteract the effects ofthe foreseen environmental impacts identified. The mitigation measures identified for each sub-component analyzed are described in the Environmental Management Plan (Section 7 of this Executive

Summary). Figures 3 and 4 show the areas of direct and indirect influence of the project based on theenvironmental component of greatest importance, which in the case of the Conga Project is water (bothsurface water and groundwater), for the construction and operation stages of the project.

A description of the methodology related to the identification of the areas of influence for each componentis presented below.

Taking into account that it depends on the location of the infrastructure, the ADI for the relief andgeomorphology, soils, and vegetation components comprise the surfaces that will be directly affected asa result of the location of project infrastructure. Due to the nature of these environmental componentsand the project characteristics, and considering that no impact has been foreseen beyond the directlocation area, the ADI matches the AII.

Both for the construction and operation stages, the ADI for air quality is defined as the area between theemission sources and the isometric line that represents a particulate matter contribution of 5 g/m

3. In

the specific case of the operation stage, during the ADI definition, the areas to be potentially impactedduring year 8 and year 13 of this project stage were the main focus as these are the years that arepredicted to have the heaviest emissions. This limit has been considered based on the recommendationsincluded in the Emission and Air Quality Monitoring Protocol published by the MEM. According to the Air

Quality Impact Assessment Guide for Mining Metallurgical Activities published by the MEM, an impact isconsidered insignificant when particulate matter represents 10 percent of the guideline value. In the caseof the PM10, this guideline value is 50 g/m

3(Supreme Decree N 074-2001-PCM), and thus the isometric

line that represents the AII is equal to the isometric line of the ADI (5 g/m3).

The noise ADI is comprised of the significant sound emission sources of activities such as stripping andearthworks among others during the construction stage and ore crushing grinding etc during the


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In the specific case of the increase in noise levels produced by the blasting in the Perol and Chailhuagnpits, it will be managed precisely (one blasting per day) and the noise coming from them would produce

impacts on an area similar to the one corresponding to the rest of the activities in the construction andoperation stages of the project; that is to say, its areas of influence are included in the areas previouslydescribed.

The ADI for surface water quantity is comprised of the drainage systems that will be affected by projectinfrastructure, which are located in the following five basins: Alto Chirimayo, Chailhuagn, Toromacho,Alto Jadibamba, and Chugurmayo. The ADI for surface water includes not only the actual facilitiesthemselves, but also the ancillary water control structures associated with them (i.e. the TSF and the areainfluenced by associated diversion channels). The ADI was determined as the area in which there wouldbe no significant downstream impact after the implementation of mitigation measures. Due to theexpected effectiveness of the proposed mitigation measures, the impacts outside the ADI are insignificantand the AII will include the same zones as the ADI.

The project philosophy for water quality is to discharge water that meets all applicable standards. TheADI for surface water quality has been defined as the area where there will be discharges from theproject, which is the same ADI defined for quantity of surface water. Using the same philosophy assurface water quantity, there is no impact beyond the direct area of influence after mitigation and the AIIwill be the same as the ADI for surface water quality.

Regarding the relation between surface water and groundwater it is assumed that the ADI forgroundwater quantity is the same as the ADI for surface water, mainly due to effects of changes in thecatchment and filtration areas and the interception of surface and groundwater flows due to the projectinfrastructure. However, taking into account that pits have a different scope of influence between theunderground sub-component and the surface sub-component, the ADI for groundwater will comprise theADI related to surface water plus the area formed by the cone of depression of the pits, which is deemedto occur quite locally. As in the case of surface water quantity, the AII for groundwater is the same as theADI since the potential impacts outside the ADI are deemed insignificant, and due to the expectedeffectiveness of the proposed mitigation measures, the AII will not include additional areas.

Regarding groundwater quality, it is expected that due to the geochemical characteristics of theChailhuagn waste rock facility (this is a non-acid generating facility) there will be no impacts togroundwater in this area. With respect to the Perol waste rock facility, although this is an acid generatingfacility, the geologic nature of the basin will allow for capture of any potential seepage from this facility.As such, although there could be localized impacts to groundwater in this area, any infiltration will becaptured and treated prior to discharge. Likewise, the ADI for groundwater quality will be defined as thezone named ADI for groundwater quantity. Moreover, consistent with the analysis, both the quantity andthe quality of groundwater will share the same AII and ADI.

It is necessary to highlight the fact that the definition of the areas of influence, both direct and indirect, forthe quality and quantity of surface and groundwater corresponds to the project operation stage, but arealso applicable, in a conservative approach, to the construction stage.

Impacts to fauna during the construction stage are related to the direct occupancy of the area and noiseemissions. Activities such as stripping will have an impact on the footprint of the project, due to the lossof food and shelter ones and th s the ADI is restricted to this footprint Additionall impacts res lting


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The ADI for the landscape is defined, both for the construction and operation of the project, based on the

components of the project (direct occupancy in the facilities) and the critical areas of visual accessibilitycontained within the visual threshold. It is important to mention that the ADI for landscape is consideredbased on human perception, and therefore it has been defined taking into account the visual accessibilityfrom densely populated areas, the project distance from these areas and atmospheric conditions.

The visual accessibility zones, which are areas of land seen from the facilities and vice versa (for instancevillages where project facilities are visible), were defined from the main project facilities. Likewise, for thebaseline evaluation, the project was determined to be visually inaccessible from some villages close by,and at these locations the impact assessment only included one receptor per evaluation sector.

It is well known that as objects move away from the observer, their details start to fade away untilreaching a point where they are not seen anymore. Visual thresholds depend on the light of day and thelightness of the atmosphere so that the most used values are between 2 and 3 km (Ramos et al., 1976;Seinitz et al., 1974). In the case of the project, a distance of 2 km from the project border has beenconsidered based on the details of the area of assessment and atmospheric conditions. The landscapeADI for both stages is defined as the visual basin estimated within the 2-km threshold.

In the case of archaeological remains, an area of influence has not been considered because work isplanned prior to construction to prevent impacts on archeological remains with tasks including the rescue

of some identified elements described in Section 3. Additionally, most of the project area has aCertificate of Inexistence of Archaeological Remains (CIRA). However, as of the date of preparation ofthis document, there is one sector (the Minas Conga II Sector) for which a CIRA is in process.

The road traffic sub-component only has an ADI and it is defined by the following section: Maqui Maqui Totoracocha lagoon Conga Project, for the project main access road and the road corridors crossingthe area of the project.

3.2 Areas of Socio-Economic Influence

3.2.1 Determination of the Area of Direct Influence

The socio-economic baseline study included an analysis of two levels, which are described below.

The first level was focused on the regional context characterization, or a general study area (GSA) whichincludes the department of Cajamarca, the provinces of Celendn and Cajamarca, and the districts ofHuasmn, La Encaada and Sorochuco (Figure 5). The second level was focused on the localcharacterization, up to the village level, or a specific study area (SSA) which included the followinghamlets (Figure 6): Alto No. 8, Bajo Coicorgue, Chilac No. 8, Cruz Pampa, El Alumbre, El Lirio, El Tingo,

El Valle, Faro Bajo, Huangashanga, Jadibamba Baja, Jerez Shihuat, La Chorrera, Quinuapampa, SanJos de Pampa Verde, San Juan de Hierba Buena, Shanipata, Tablacucho, Uign Lirio, Uign Pululo,Yerba Buena Chica, Quengoro Bajo, Huasiyuc Jadibamba, Piedra Redonda Amaro, Chugurmayo,Namococha, El Porvenir de la Encaada, Lagunas de Combayo, Agua Blanca, Quengoro Alto, SanNicols and Santa Rosa de Huasmn.


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Residual impacts that the Conga Project generates on each receiver (village) were evaluated andclassified. From these analyses it can be concluded that the villages making up the projects Area of

Direct Influence (ADI) are as follows:

Chart 1Area of Direct Influence (ADI)

Quengoro BajoHuasiyuc JadibambaPiedra Redonda AmaroChugurmayo

NamocochaEl Porvenir de la EncaadaLagunas de CombayoAgua BlancaQuengoro AltoSan NicolsSanta Rosa de Huasmn

Ten of these villages coincide with the hamlets in which the project infrastructure is located (CAEP, by its

initials in Spanish), and the last one borders on this area. These hamlets have been selected within theADI because of the residual impact magnitude associated with land use related to project infrastructureand activities carried out by MYSRL.

Unlike the rest of the Specific Study Area (SSA) hamlets, during the pre-construction stage, thesehamlets present additional impacts: reduction of agricultural activities and decrease in long-term landinvestments.

In subsequent stages, additional negative impacts are generated, which affect certain hamlets to agreater extent, such as reduced access to some resources in the area (e.g. trout) and the perception of

potential decreases in agricultural yield resulting from increased dust.

Likewise, although all the SSA villages are affected to a certain extent by road disruptions (disarticulationof economic corridors and rural road change), greater impacts are felt by those villages located at or veryclose to the project area.

The classification of the ADI results in the identification of the AII, which are the remaining 21 hamlets inthe SSA (Figure 8), due to the fact that impacts of considerable significance will not affect them. Inaddition, because the provinces of Celendn and Cajamarca could have potential negative impacts during

pre-construction due to perception, these were also included in the AII (Chart 2).


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Chart 2

Area of Indirect Influence (AII)

Alto No. 8Bajo CoicorgueChilac No. 8Cruz PampaEl AlumbreEl LirioEl Tingo

El ValleFaro BajoHuangashangaJadibamba BajaJerez ShihuatLa ChorreraQuinuapampaSan Jos de Pampa VerdeSan Juan de Hierba Buena

ShanipataTablacuchoUign LirioUign PululoYerba Buena ChicaDistricts of Sorochuco, La Encaada and HuasmnProvinces of Celendn and Cajamarca

Taking the foregoing into consideration, it can be concluded that the areas of direct and indirect influence

defined for the socio-economic subcomponent include all receivers on which the occurrence of somesignificant negative impacts is estimated. Additionally, it is important to indicate that the most significantpositive impacts on the socio-economic subcomponent are likely to occur within these same definedareas of influence.


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4.1.3 Climate and Meteorology

The information from the Conga Project Climatological Data Analysis report (Knight Pisold, 2008) was

considered for the climatic characterization. This study was conducted in order to establish designcriteria for the project and includes regional meteorological stations operated by the National Meteorologyand Hydrology Service (SENAMHI, by its initials in Spanish), as well as several meteorological stationsoperated by MYSRL.

The monthly average maximum air temperature ranges between 10.1C and 13.1C. In the case ofminimum temperature, a monthly average from 2.5C to 3.6C is observed. In the project area, thecoldest temperatures occur in the dry season (from May to September) and the highest temperatures inthe wet season (from October to April). Likewise, the atmospheric humidity in the study area presents

annual average values between 77.2 percent and 93.0 percent, in the analyzed seasons.

The climate report (Knight Pisold, 2008) determined that the evaporation records from the stationsoperated by MYSRL do not have an adequate record period . Therefore, the project area potentialevaporation was evaluated by means of theoretical formulas. By using the EPIC (Erosion-ProductivityImpact Calculator) computational model, the annual potential evaporation was estimated between 1,110m and 1,211 m. The highest levels would appear from September to January with values above 98 mmand the lowest level would appear in June with 78.6 mm.

In order to predict the seasonal fluctuations of the project area monthly maximum precipitations, rainfallrecords were extended through the use of a regression analysis. Such analysis is used to extend theperiod of record of a specific station, by correlating it with data from other nearby stations with a moreextensive period of record. According to this regression, the annual precipitation average was estimatedbetween approximately 1,126.2 mm and 1,143.4 mm, while the minimum was estimated between 736.4mm and 736.7 mm and the annual maximum was estimated between 1,699.4 mm and 1,865.4 mm.During the wet season, average precipitation was estimated between 893.5 mm and 916.0 mm andbetween 230.8 mm and 240.7 mm during the dry season.

A specific analysis of the El Nio Southern Oscillation (ENSO) phenomenon was conducted with regard

to the precipitation variability in the project area. The Oceanic Nio Index (ONI) from the NationalOceanic and Atmospheric Administration (NOAA) of the United States was used to determine thevariability episodes. In general, it is observed that high precipitation values did not occur during theENSO warm episodes. Upon comparing precipitation for ENSO and NON-ENSO months, the averageprecipitation in ENSO months exceeds the average precipitation, whereas precipitation in NON-ENSOmonths is limited.

Average annual wind speeds range from 3.46 m/s and 4.3 m/s. The predominant direction is east-northeast and northeast, with a lower component in the north-northwest direction.

According to the information from the Solar Power Atlas Map of Peru (SENAMHI, 2003), the radiationlevels range from 4,500 Wh/m

2and 6,000 Wh/m

2in the project area, as a result of its latitudinal location,

elevation and cloudiness level. The highest level for this parameter is recorded in October andNovember, while the lowest occurs in February.

4 1 4 Air Quality


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monoxide (CO), nitrogen dioxide (NO2) and sulfur dioxide (SO2) records were below the respectivestandards.

4.1.5 Noise and Vibration

Noise level measurements were carried out during the day (07:01 22:00) and night (22:01 07:00) ateight monitoring stations within the sensitive sector environment in the study area, in April, July, andOctober 2006, February, June, September, and December 2007, June 2008 and November 2009.

During the day period, the ECA for residential areas was exceeded twice, both times in the Montura area(MCMO-1), presenting a maximum value of 62.6 dB(A). During the night, the ECA established at 50dB(A) for residential areas was exceeded six times, at the stations located in Quengoro Alto, San

Nicols, Montura and Agua Blanca, with a maximum value of 56.6 dB(A).

Regarding vibrations, acceleration levels were monitored at 6 points located in the vicinity of the futureproject facilities, in the areas of San Nicols, Huayra Machay, Amaro, Agua Blanca, and Quengoro Alto.Additionally, two speed level measurements were conducted in the San Nicols area. As a reference,values registered with the ISO 2631 standard were compared, finding acceleration levels within theacceptable value range. Regarding the speed level, values established by the Federal TransportAdministration (FTA) were used as a reference, obtaining results below the human perception threshold.

4.1.6 Geology and Seismicity

The local geology of the Conga Project area is composed of the Cretaceous sedimentary rocks, Eocenevolcanic rocks and Eocene/Oligocene/Miocene intrusive rocks. In the project area, the CretaceousGoyllarisquizga, Chlec, Pariatambo, Inca, Santa, Farrat, Pulluicana and Cajamarca formations can befound, as well as the Tertiary Volcnico Porculla and Volcnico Huambos formations and the DaciteStock intrusive rocks. Quaternary (alluvial and glacial river) deposits cover the bedrock.

Peru belongs to one of the regions with the greatest seismic activity, known as the Pacific Ring of Fire,where more than 80 percent of seismic events worldwide have occurred. The regional tectonicframework on a large scale is governed by the Nazca plate and the continental South American plateinteraction, which occurs in a subduction plane on the Pacific Ocean on the Peruvian coast. It is worthmentioning that earthquakes with magnitudes of 5.5 or more on the Richter scale, have not beenregistered within a 100-km radius of the Project area.

The potential deterministic design values of peak ground acceleration (PGA) for the project area rangebetween 0.05 g and 0.21 g. These accelerations are produced by earthquakes (M equal to 8 on theRichter scale) located at around 100 km below the project area.

4.1.7 Soils

Fifty nine sampling points in the project area were evaluated through test pits, natural ground cuts, androad cuts. From the total analyzed points, 197 samples were obtained for characterization purposes, aswell as 47 samples for heavy metals analysis.

Twenty-three soil units, taxonomically grouped and described as a subgroup (Soil Taxonomy USDA), to


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found, presenting a limitation for perennial cultivation establishment. Likewise, two types of lands suitablefor pasture (P) were found, with limitations of medium agrological quality by the edaphic and climatic

factors, and low agrological quality by the topographic factor and the low natural fertility. The fourth groupcorresponds to lands suitable for forest production (F), with severe edaphic and topographic limitations(inappropriate for agricultural activities), but they do permit to carry out plantations or reforestation withtimber-yielding species. Finally, protection lands(X) were found, with extreme limitations preventing theiragricultural and/or forest exploitation.

In accordance with the current land use classification of the International Geographical Union (IGU), thefollowing were identified: natural meadow lands, forest lands, cultivated vegetation lands, non-use and/orunproductive lands, urban lands and/or governmental and private facilities.

With respect to the soil metal content showing the area mineralization characteristics, values that exceedthe CCME reference values were found with selenium (Se) and arsenic (As) being the most identified.For both of them, some sampling points that exceeded such guidelines are in the project area.

4.1.8 Surface Water

The characteristics of the surface water flow in the project area depend mainly on precipitation during thewet season (November to May) and on groundwater discharge during the dry season (June throughOctober). Seasonal flows vary widely with large variations occurring during the wet season. While flows

are lower during the dry season, they may significantly increase due to specific precipitation events inJune through September. The base flow, mainly related to groundwater discharges, has been defined asthe average value in August and September, which are the two months when precipitation does not havea significant influence on the surface flow.

Generally the surface water quality in the study area basins meets ECA 3 standards. Regarding metalconcentration, the ECA for Category 3 were met in the five basins. Likewise, dissolved oxygen levelswere found to generate good anaerobic conditions. Coliform concentrations are also below the ECA forCategory 3, except for the Alto Jadibamba River basin. PH ranges are similar, presenting neutral toalkaline conditions, with predominant calcium-bicarbonate type waters. The Alto Chirimayo basinpresents an acidic pH in the areas close to the Perol bog, exceeding the ECA for Category 3.

4.1.9 Groundwater

Groundwater quantity in the project area is associated with seepage caused by precipitation andrecharge. Data available on 96 wells were used to develop an interpretation of the groundwater levelsand flow rates and directions, as well as the geological permeability and underlying controls. The tailingsstorage facility basin and the Perol waste facility areas are widely unsaturated but retain precipitation infractures in the underlying bedrock. The primary locations of groundwater-bearing surface deposits

include relatively narrow alluvial material strips along the bottom of the Alto Jadibamba River micro-basinand the thick moraine of the Mamacocha micro-basin forming the surface of the Toromacho micro-basinwest ridge.

Groundwater levels are mainly shallow, which are measured at 1.8 m below ground surface. Soils in testpits were mainly wet in bofedales and areas around them. The groundwater elevation contours generallyimitate the basin topography with groundwater gradients descending from the high plateau summits to


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and in the Toromacho and Alto Chirimayo micro-basin basins present similar characteristics. With regardto metal concentrations, ECA exceedances for aluminum (Al), iron (Fe), lead (Pb), manganese (Mn) and

arsenic (As) are shown in the four basins. The Chailhuagn River basin presents ECA exceedance inmercury (Hg) concentrations as well. Likewise, coliform concentrations are also above ECA in the basinsunder study. PH ranges are similar, presenting neutral to alkaline conditions with pH ranges from 6.3 to8.5.

4.2 Biological Environment

4.2.1 Flora and Vegetation

The biological baseline assessment area is composed of 5 sectors corresponding to the five watersheds,

occupying an area of approximately 29,490 ha. The following vegetal formations were identified: bush,bog, grassland, riparian vegetation, and agriculture. Likewise, two types of special floral compositioncover were evaluated: lagoon and rocky outcrop shores. In the case of vegetal formations in the studyarea, grassland occupies the larger area (57.8 percent), followed by agriculture (26.9 percent) andbushes (6.8 percent). Bofedales (wetlands in English) occupy only 0.9 percent of the assessment area.In other contexts, bofedales are more important due to their high biological and hydrological value, sincethey constitute habitats for several plant and animal (some endemic) species and act as water flowregulators by retaining water during the wet season and releasing it during the dry season. In comparisonwith the other vegetal formations, the bofedales in the area present a very low diversity of flora and aredegraded due to overgrazing.

A total of 460 vascular plant species and 60 bryophytes were registered. These species group togetherin 86 genera and 29 botanical families. The dicotyledons showed the greater number of species(Magnoliopsoda; 69.6 percent), followed by the Monocotyledons (Liliopsida; 25.2 percent) and thePteridophytes (5.0 percent); while only 1 Gymnosperm (Ephedra rupestris) was registered in theassessment area. The botanical families with greater numbers of species were Asteraceae (97 species)and Poaceae (70 species). Vegetal formations showing greater specific richness values were bushesand grasslands, while bofedales showed the lowest specific richness.

Among the flora species registered in the baseline study, 34 are considered under some national orinternational conservation category. From these species, 14 are under some endangered criterion inaccordance with Supreme Decree No. 043-2006-AG (List of Endangered Flora in Peru). Among thesespecies, 7 are considered Critically Endangered (CR), 4 are in the Vulnerable (VU) category, and3 species are in the Nearly Endangered (NE) category. According to the Convention on InternationalTrade in Endangered Species (CITES) criteria, 5 species are considered in Appendix II. On theInternational Union for Conservation of Nature (IUCN) red list, the Polylepis racemosaspecies is in theVulnerable (VU) category and the Alnus acuminataand Distichia acicularisspecies are in the NearlyEndangered (NE) category. Likewise, 46 plant species were registered, which are considered endemic

to Peru according to the Red Book on Endemic Plants in Peru (Len, B., et al., 2006), of which 6 speciesare endemic to the department of Cajamarca, that is, they have a restricted distribution.

4.2.2 Terrestrial Fauna

In the biological baseline assessment area, 225 species of terrestrial vertebrates were registered; ofwhich 205 correspond to the avifauna group, distributed in 15 orders and 41 families. The greater


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Natural Resources (INRENA, by its initials in Spanish) categorization, 13 avifauna species registeredduring the assessments presented some type of conservation status; the Taphrolesbia griseiventris

hummingbird presents the highest conservation Critically Endangered (CR) category, 4 species are inthe Endangered (EN) category, 5 species are in the Vulnerable (VU) category and 3 species are in theNearly Endangered (NE) category. One mammal species and 1 amphibian species were registered inthe Vulnerable (VU) category of the INRENA categorization, while none of the reptiles registeredpresent conservation status.

Within the conservation categories of the International Union for Conservation of Nature (IUCN), there areeight bird species registered in the assessment area, three species considered in the EN category, threespecies are in the VU category and the remaining two species are included in the NE category. Oneamphibian species is in the CR category. No mammal or reptile species were listed by the IUCN.

The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES)considers the Vultur gryphusAndean condor within Appendix I, while 51 bird species are protected atfamily and/or order level and are included in Appendix II. One mammal species, the Lycalopex culpaeusAndean fox, is included in the CITES Appendix II. No mammal or reptile species were categorized by theAppendix I CITES. It is necessary to note that the assessment area where these species were registeredis much larger than the direct project area.

4.2.3 Aquatic Life

Aquatic life was monitored in 6 lakes and 11 micro-basins close to the future facilities in the biologicalbaseline assessment area.

The habitat quality estimated in accordance with the biological parameters determined that stationsdownstream of Chailhuagn lake have good quality water. Very poor quality water was registered at oneof the stations located in the Alto Chirimayo micro-basin, while the rest of the micro-basins evaluatedhave poor water quality.

Benthic macroinvertebrates turned out to be relatively abundant organisms in micro-basins, where a totalof 59 morphospecies, distributed in 4 phyla, 7 classes, 14 orders and 38 families, were registered;9 species on average were registered in the lakes while the highest values were registered in the Azuland Perol lakes.

Of the 11 micro-basins evaluated, the presence of fish was registered in 10 of them. Two fish species,the rainbow trout (Oncorhynchus mykiss) and the catfish (Astroblepus sp.), were registered in theassessment area. In total, 61 trout and 291 catfish were registered in all the micro-basins evaluated;these numbers are considered low given the number of micro-basins evaluated. Micro-basins present indifferent sectors showed distinct abundances depending on their location; the micro-basins located in

Chailhuagn and Toromacho had greater abundance. It is worth mentioning that the evaluated micro-basins mainly belong to areas close to the catchment area; therefore, they generally have a low waterquantity. In the lakes evaluated, rainbow trout (Oncorhynchus mykiss) were only registered in the Perol,Chailhuagn, and Huashwas lakes, with Huashwas having the greatest abundance. It is necessary topoint out that trout is a species belonging to the salmonid group and native to North America, which wasintroduced in Peru and then planted in different Andean water bodies. It only reproduces in streams andcannot reproduce naturally in lakes; therefore the registered individuals were assumed to be stocked


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elements and the main dynamics of landscape dimension. The visual quality analysis, the fragilityanalysis, and analysis of the landscapes visual absorption capacity were also conducted.

For the visual landscape, seven landscape units were established: bofedales, water bodies, high plateaugrass/bushes, grasslands, rocky outcrops, woody areas and cultivation areas. Likewise, a landscapesectoring was carried out by applying the watershed concept, taking into account important physicalaspects, such as the elevation and topographic trends related to local geomorphological processes. As aresult, five sectors (Toromacho, Alto Jadibamba, Chugurmayo, Alto Chirimayo, and Chailhuagn) wereobtained.

The landscape visual quality analysis results showed two high visual quality areas: Toromacho and AltoJadibamba, due to the singular features they present. Sectors showing a medium visual quality

landscape, Alto Chirimayo and Chailhuagn, respond to the distinguished presence of water representedby lakes. The Chugurmayo sector presented a low visual quality, due to the fact that they turn out to becommon landscapes in the area and the region.

According to the fragility analysis, three sectors (Toromacho, Alto Jadibamba, and Chugurmayo) presenta medium fragility and consequently a medium visual absorption capacity, mainly due to the relief withmoderate slope and low inclination in some areas, as well as to the presence of almost imperceptiblehuman action. The Alto Chirimayo and Chailhuagn sectors present visual fragility described as littlefragility as a result of the relief. A considerable percentage of bog areas have been registered in the Alto

Chirimayo sector and this type of vegetation is regenerated very slowly.

4.3.2 Archaeology

The Conga Project direct occupation area is divided by 4 large areas called archaeological sectors, whichare: Minas Conga, Minas Conga I, Minas Conga II and Minas Conga III. The archaeological sectors havebeen established based on MYSRL work planning (facility location) and the consequent request toconduct Archaeological Assessment Projects with Restricted Excavations with Delimitation Purposes inorder to obtain the respective Certificates of Inexistence of Archaeological Remains (CIRA).

Initially, the main objective of the Archaeological Assessment Projects carried out in the Minas Conga(Silva, 1997), Minas Conga I (Aguirre, 2002) and Minas Conga II (Aguirre, 2003) sectors was to identifyand delimit archaeological sites through restricted excavations, thus having a protection and preservationplan of cultural heritage from the company and complying with current legal requirements. Subsequently,through the execution of Archaeological Assessment Projects, complementary to the previous studies,the CIRAs of the Minas Conga, Minas Conga I and Minas Conga III sectors were obtained. Additionally,between 2006 and 2007, MYSRL managed to directly obtain several CIRAs of less than 5 ha, before theNational Institute of Culture, from which the CIRAs corresponding to the Chailhuagn and Chirimayosectors may be highlighted. The CIRA corresponding to the Minas Conga II archaeological sector is

currently in progress.

4.3.3 Road Traffic

The access road to the Conga Project consists of the following sections:

From Conga to the area below the Totorococha lagoon


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Section 5.0 - Project Components

5.1 Infrastructure

The Conga Project main infrastructure description summary is presented below.

5.1.1 Mine Facilities

5.1.1.1 Perol and Chailhuagn Pits

The Conga Project operation will involve the mining of approximately 504 Mt of ore and 581 Mt of low

grade ore and waste for a total of 1,085 Mt of material. The Perol pit (344 Mt of ore) will be developed in4 phases and will extend to the final pit limit indicated in Figure 2, centered at the UTM coordinates9,235,134 N and 791,633 E. Upon completion of mining, this pit area will be roughly elliptical with a majoraxis of 1,950 m long oriented N45W, while the maximum pit bottom elevation of 3,432 m. TheChailhuagn pit (UTM coordinates 9,231,762 N and 791,025 E), located south of the Perol pit, will bedeveloped in two phases and will extend to the final pit limit indicated in Figure 2. In the final phase, theChailhuagn pit (160 Mt of ore) will occupy an area of approximately 143 ha, 1,800 meters long in anorth-south direction with a maximum pit bottom elevation of 3,588 m.

5.1.1.2 Perol and Chailhuagn Waste Rock FacilitiesWaste rock facilities, in which low grade ore is also stored, will be located in the vicinity of the respectivepits (Figure 2). Disposal of 581 Mt of waste is estimated, both from the Perol and Chailhuagn pits. It isestimated that the Perol waste facility (UTM coordinates 9,236,966 N and 790,540 E) will have a finalcapacity of 480 Mt and will occupy an area of 289 ha. This facility will receive waste material from thePerol pit (407 Mt), bog material (6 Mt) and LoM material associated with the Perol pit (67 Mt). TheChailhuagn waste facility (UTM coordinates 9,233,299 N and 790,733 E) will have a capacity of 174 Mtand will occupy an area of 160 ha, being exclusively used for waste material from the Chailhuagn pit.

5.1.2 Processing Facilities

The ore to be processed will be moved by haulage trucks to the primary crusher, centered at the UTMcoordinates 9,234,153 N and 791,526 E (Figure 2), and then moved via conveyor belt for about 2.4 km tothe concentrator plant (Figure 2). The processing capacity of the concentrator plant (UTM coordinates9,233,643 N and 789,061 E) is 92,000 tpd. Potable water and fresh water necessary for the processeswill come from the upper reservoir.

Processing facilities will separate the gold-and-silver-bearing copper concentrate by flotation process.These processing facilities include a mill, flotation, thickening, and filtering processes, as well asconcentrate storage and transfer. The project currently includes concentrate transport by trucks to a porton the coast, most likely Salaverry.

Tailings will be produced by the concentrator plant and will be thickened to between 62 to 65 percent(solid mass/total mass) and placed in the tailings storage facility, located in the Toromacho and AltoJadibamba basins (Figure 2).


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Dams will continue to be built during the project operating stage. In the case of the main dam, it will bebuilt in stages to reach a final elevation of 3,796.5 m, requiring a fill volume of about 4.3 M m

3, while in the

case of the Toromacho dam, the main embankment will be built in stages to a final elevation of 3,796.5m, requiring a fill volume of approximately 2.8 M m3.

5.1.4 Ancillary Facilities and Access Roads

Additionally, during the operating stage, the project will have ancillary facilities that will include:administrative offices, maintenance infrastructure, access roads (internal and external), watermanagement facilities, solid waste disposal systems, electrical facilities, and fuel distribution facilities.The project will not have its own camp because it will use the same one currently used by MYSRL in theYanacocha complex.

The water management facilities considered in this section include process water and raw water tanks,contact and non-contact water management systems, raw, fresh and potable water treatment plants, andwater distribution pipes. Additionally, the project facilities include construction of four reservoirs: Lower,Upper, Chailhuagn and Perol. From these, only the upper reservoir will be used as a source of water forthe project, while the rest will be used to mitigate social and environmental impacts on different basinsand habitats.

5.1.4.1 Access Roads

Fifteen (15) internal access roads (Figure 2) have been considered in the project area. In the case ofhaul roads, they will have a maximum width of 42 m to allow haulage truck traffic. All access roads will beconstructed with proper drainage control and sediment management structures.

Development of the Conga Project will include areas currently occupied by access roads that are used bylocal people for transit to and from different villages. In order to maintain traffic between these villages atthe lowest possible variation level, the project has considered the construction of a road system(corridors) to maintain the possibility of circulation through the project area.

An access road will be built from the Conga facility site to the Yanacocha complex (Figure 2). Thisaccess road will be designed to transport personnel, supplies, reagents, and products. The main accessroad (Figure 3) has four segments: Conga-Maqui Maqui-Km 24-Chilete-Ciudad de Dios. The constructionof this access involves the development of extensions to the existing road sections and construction ofnew sections from the project concentrator plant to Maqui Maqui. Some other changes to the road fromthe Yanacocha complex to Ciudad de Dios may also be required if the associated assessmentsrecommend their need.

5.2 Labor RequirementThe Conga Project construction stage is scheduled for a period of 42 months and will employ around900 people in the early months, reaching a maximum of 6,000 workers, both for the execution of skilledand unskilled tasks. Once mine operations begin, it is estimated that the required labor will be around1,660 people, including 1,174 employees and 486 contractors during the first 11 years of operation. Thelabor requirement in the Conga Project will vary throughout the lifetime of the mine, reaching a peak of1 800 people in year 2 The Conga Project will have a local hiring policy that will give priority to local


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Section 6.0 - Potential Environmental and Social Impacts

This section focuses on the analysis of environmental and social impacts, which provides the basis fordeveloping control and mitigation measures that the project will implement to reduce these impacts to anacceptable level (which are summarized in the following sections). Although the impact analyses for eachof the environmental components were quantitative, this report section presents the semi-quantitativeevaluation of the relative importance of impacts on environmental and social receivers (or components)within the project Area of Influence (AI). This analysis was based on the proposed activities for eachproject stage and applies a systematized evaluation methodology using matrices.

Section 6.1 of this Executive Summary presents the environmental impacts from the project activities,while the following section (6.2) indicates the main socio-economic impacts identified by Metis Gaia as aresult of planned project activities. We must stress that the impact assessment has considered themitigation, control, and/or compensation measures designed for the project, which is why impacts arecalled "residual. Section 7 of this Executive Summary presents the main environmental managementmeasures to counteract the projects adverse effects, while section 9 presents the main socialmanagement measures proposed to mitigate or compensate for adverse effects and, as appropriate,enhance the positive impacts.

6.1 Environmental Impacts AnalysisTables 1 and 2 present the results of the environmental impact assessment matrices for construction andoperation stages, respectively. The environmental impacts in each assessed subcomponent arepresented below:

6.1.1 Relief and Geomorphology

The relief will not be affected significantly by the various project construction and operation activitiesbecause they will not generate significant changes in the zone as they are specific in the general relief

context.

6.1.2 Soils

Construction activities that will have impacts on the soil subcomponent are topsoil removal andearthworks. It is important to note that a large part of soil, which must be removed to make projectdevelopment possible, will be temporarily stored in topsoil stockpiles such that there is enough material tosupport final remediation activities.

6.1.3 Air QualityEarthworks, transport, blasting, processing and ore extraction will generate particulate material (dust) andgases that will disperse to areas near emission sources. These emissions will be mitigated through anadequate dust suppression system, both on access roads and strategic emission points.

6 1 4 Noise and Vibrations


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Likewise, the project has the potential to have an impact on the quality and quantity of flows in nearbymicro-basins. Potential impacts to water quality are associated with sediment increases and acid watersrelated to the Perol waste rock facility. Potential impacts to water quantity are a result of decreased flowsin the downstream basins.

Mitigation measures include base flow replacement in micro-basins impacted by the project throughappropriate management of the four reservoirs and water treatment to acceptable quality prior todischarge.

6.1.6 Groundwater

For the same reasons as in the case of surface water, the project would represent a variation in the

infiltration rates and a localized disruption of the hydrogeological flow pattern due to (1) site infrastructure(i.e. wells that intercept groundwater seepage), (2) project development (i.e. depression cones of pits) or(3) the occurrence of poor quality seepage.

Taking the foregoing into consideration, it is estimated that the project has the potential to generateimpacts on the environment. However, the envisaged mitigation measures, including the release ofcompensation flows from reservoirs, the effective containment of poor quality seepages throughimplementation of appropriate engineering measures, water treatment, and proper surface water andgroundwater management, will allow adequate environmental protection.

6.1.7 Flora and Vegetation

The project will cause loss of areas with vegetation cover consisting of grassland, bog, bush and areasdevoted to agriculture, among others. The most affected sectors will be Alto Jadibamba and AltoChirimayo, where most of the facilities will be located. Loss of bofedales will be approximately 103 ha. Itis important to indicate that the bofedales in the project area present degraded conditions due toovergrazing. Specific measures have been proposed as part of the project to offset the temporary loss ofthese vegetal formations in the area.

6.1.8 Terrestrial Fauna

The construction and operation stages are expected to generate impacts to fauna. It should be noted thatthe impact on habitats and frightening fauna away are not only restricted to the area of direct occupation,but they extend to the surroundings, depending on the magnitude of the disturbance. The mainconstruction activity that will have impacts on fauna is stripping by causing habitat loss in the footprint orfragmentation and frightening fauna away. It is also estimated that operating activities will have effects onfauna mainly related to the frightening of individuals as a result of noise or visual contact.

Within the Environmental Management Plan, we have considered measures to mitigate the impacts onterrestrial fauna. This plan includes the development of studies to identify regional habitat for an adaptivemanagement strategy.

6.1.9 Aquatic Life

During the construction stage, occurrence of impacts on aquatic life is anticipated, both in quality and


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6.1.10 Landscape

The presence of infrastructure in various basins, particularly in open pit and waste rock facilities, will

generate changes in the landscape. These changes will be visible from the five visual basins evaluated;the tailings storage facility, pits and waste rock facilities are the more visible facilities.

However, as indicated by specific modeling, project visibility is quite localized.

6.1.11 Pongo-Conga Corridor

Corridor construction and operation will generate impacts mainly resulting from stripping and increasedroad traffic. It is worth mentioning that the assessment of impacts associated with this corridor has beencompleted in a qualitative manner; nevertheless, MYSRL will generate more information allowing

confirmation of the results presented and effective management of the environmental impact caused byconstruction and operation of this access road.

The main mitigation measures for these impacts are summarized in Section 7 of this Executive Summary.

6.2 Socio-economic Impacts

This section provides a socio-economic impact analysis for the Conga Project over its useful life. Thisstudy was performed for the pre-construction, construction, operation, and closure stages (Table 3).

The analysis starts with identification of predictable impacts broken down into components of the socio-economic environment. The assessment of each component is subsequently made from a series ofcriteria that take into account the impact characteristics and their receivers. Finally, the impact rating iscarried out to summarize their significance as being either positive or negative and in low, medium, andhigh levels for the various receivers, whether these are population groups or geographic areas.

The impact analysis results are important as they determine the nature and extent of the projects socio-economic influence on the population of the hamlets, provinces, and region in which it develops. From

these results, the necessary management measures are proposed for any subsequent elements of theCommunity Relations Plan and the areas of influence are delimited.

6.2.1 Identification of Impacts

This section makes explicit all the potential impacts the project would generate in its various stages and inthe local environment without a management plan. For this purpose, a matrix analysis framework wasused for each project stage (pre-construction, construction, operation, and closure) which, from theactivities and actions, allowed identifying the following impacts:

6.2.1.1 Pre-construction Stage

The expected impacts, activities and actions of the pre-construction stage would generate both positiveand negative impacts arising from the service contracting and land purchase from the people of thehamlets located within the Project Site Area (hereinafter, CAEP

1, by its initials in Spanish). Likewise,

negative impacts are identified as a result of disruption of communication pathways (disruption of trailsti ill th l d h


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6.2.1.2 Construction Stage

Both positive and negative impacts were identified during the construction stage. The positive impacts

would be related to the purchase of goods and contracting business and labor, including localprocurement and contracting for construction works. The negative impacts would be generated due toimmigration of labor in search for employment opportunities and the risks of over-expectations ofemployment, social investment and unsubstantiated environmental impact perceptions. To that effect, theproposed mitigation actions are related to appropriate plans of communication and informationdissemination to the affected population.

6.2.1.3 Operation Stage

From the socio-economic impact analysis for the operation stage, positive impacts could be associated

with the payment of obligations (i.e. taxes, royalties, and fees), procurement and contracting, anddevelopment programs, among others, which will have influence on the project environment, mainlylocally but also on a more regional scale. The negative impacts would arise from labor and socialinvestment over-expectations, environmental impact perceptions, migration impacts, and conflictsgenerated by the allocation of resources collected from MYSRL by the State.

6.2.1.4 Closure Stage

From the socio-economic analysis and sequential evaluation for the closure stage, positive impacts were

identified resulting from the contracting company for employment generation for activities in this stageand the continued reservoir use by the population that would keep the benefits of the water regimes. Thenegative impacts would result from job cuts due to the cessation of operations and the decrease ineconomic activity in the area of influence. Upon considering this, it is anticipated that management planmeasures should address situations such as those concerning former worker employability.

6.2.2 Impact Assessment and Rating

The impact assessment process considers two scenarios: one without the application of social impactmanagement measures and one after their implementation. In the second case, the remaining impacts(residual impacts) show the effects arising after the implementation of the measures described in theSocial Impact Management Plan.

The impact assessment, both in the scenario without impact management measures and the one withmanagement measures, is carried out through the three basic dimension analyses: direction, intensity,and amplitude. Each dimension is approached by specific criteria tailored to the methodology for theenvironmental impact assessment proposed by Conesa (1997) and extended to better fit the nature ofsocio-economic impacts.

The global rating of the Conga Project impacts results in a slight net positive impact, in a context in whichany impact management measure is not executed. However, a management plan is required to improvethe conditions of the negative impact receiving agents and enhance positive impacts. Therefore, after theimplementation of impact management measures in the case of the project, results change to a high netpositive impact.

The impact assessment results grouped according to their nature are described below


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The economic component impact assessment results in a high net positive impact, so in most cases, theimpact management measures are intended to enhance these positive effects that fall within thiscomponent. The inclusion of these measures allows for significantly increasing the magnitude of the netimpact. Therefore, in both scenarios, with or without mitigation measures, the net impact rating that isgenerated in this component is highly positive.

The subcomponents that, after the implementation of impact management measures, undergo majorchanges are: income, employment, and agricultural production. The remaining three subcomponents:prices, economic activity and property rights, receive no significant influence of any impact managementmeasure. In the first case, since it is not possible to intervene in normal price evolution, the market is thekey determinant. And, in the following cases, because the resulting impacts are positive they do notstrictly require impact management measures.

6.2.2.2 Social Component (Impacts on Commu

Documents

Yanacocha - Project Conga - Executive Summary (Inglish)