Sustainability / Community Engagement / Peru

Pan American Silver operates three mines in Perú.

  • The Quiruvilca underground mine is located in the northern Andean region of Perú, in the department of La Libertad, at an elevation of approximately 3,800 meters above sea level
  • The Huaron mine is located in the central Andean region of Peru, in the department of Pasco, at an elevation of between 4,250 and 4,850 metres above sea level
  • The Morococha mine is located in the central Andean region of Peru, in the department of Junin, at over 4,550 meters above sea level

Pan American Silver was one of the first mining companies in Perú to establish a Social Responsibility function within its local management team, with the intention of improving the numerous community development initiatives already in place and better communicating the results of said initiatives to the local communities and the general public.

In 2007, the Company created the Pan American Silver Association (Perú), a non-profit organization dedicated to implementing and managing development projects in our host communities and in the areas of influence of our operations. The Association’s programs include:

Health

At Morococha, Pan American Silver has implemented several initiatives with the intention to create a preventative culture of among the population. To this end, the Company has teamed up with several local and regional institutions to improve pediatric health, to extend health services to senior members of the community, to provide oral care, to improve oral hygiene, to reduce the incidence of oral and digestive health issues among children and to provide access to vaccination against seasonal influenza and other diseases.

Nutrition

Pan American Silver has been working with charitable foundation Caritas del Peru since 2007 on the "Project for the Improvement of the Health and Nutrition" in the communities surrounding the Quiruvilca, Huaron and Morococha mines. The aim of the initiative is to mitigate and ultimately eliminate chronic malnourishment in children under the age of three and pregnant women, to improve the availability and consumption of healthy food, to improve the health regime of entire families, to expand medical services and to promote the development of healthy living conditions at homes, schools and in community areas. This award-winning program also includes activities geared towards the improvement of home kitchens, nutritional health at schools, the breeding of small livestock, the implementation of community and family organic green houses and the continued monitoring of nutrition levels among the target population.

Education

Pan American understands that education is one of the pillars of sustained progress and development. To raise education levels in the communities where we operate, the Company provides financial and logistical support to primary and secondary schools, scholarships for skills development and vocational training for high school students, internships and technical careers for post-secondary students, and several job-related training programs for employees.

At Huaron, Pan American supported the creation of the first technical centre dedicated to mining activities to provide young adults in the nearby community of Huayllay to develop the skills and knowledge necessary to work in the mining industry.

Infrastructure

At Quiruvilca, Pan American supports the Regional Mining Group of La Libertad, which was formed by MARSA, Consorcio Minero Horzonte, Poderosa, Sayatoc and Pan American Silver. The group was established in 2007 with the intention to optimize the use of the voluntary contributions made by mining companies in the region. The group works with the La Libertad Technical Commision, which is formed by the regional governments and the church of Huamachuco and the Pataz community association. One of the projects supported by the group is the improvement of over 360 kilometres of roads and highways in the region of La Libertad. This would improve the connection of 11 districts in the region by cutting travel times in half.

Similarly, at Huaron, Pan American has become part of the Grupo Minero Pasco. The group is formed by the mining companies Atacocha, El Brocal and Milpo. The group works with the Pasco Regional Coordination Commission, which is also integrated by the Pasco Regional Government, the Archdiocese of Tarma and the Alcides Carrion National University. In the area surrounding the mine the group supports the construction and maintenance of the Lima-Canta-Huayllay-Ricran route. The project will rehabilitate and improve over 228 kilometres of highways and secondary roads and will benefit over 175,000 people. This route is especially important as it provides an alternative route to some parts of the Central Highway, one of the most important routes in the country.

Alternative Economic Development

At Quiruvilca and Huaron, Pan American Silver established Jewelry and Silversmith schools to allow local communities to take full advantage of their long-standing silver smith tradition and to foster the development of business skills and the establishment of self-sustainable enterprises. Pan American provides supplies and finances the materials and equipment for the schools and hires teachers and experienced artisans to provide the training for the students. In addition, the Company fosters student participation at trade and commercial fairs and exhibition and provides the necessary support for the commercialization of silver jewelry and art pieces produced at the school.

At Huaron and Morococha Pan American has established artisanal workshops for the production of fine textiles with alpaca wool from herds bred by the local communities.

In recent years, Pan American Silver Perú has received a number of awards and recognitions for its contribution to the sustainable development of the local communities where it operates:

  • 2010 – Sustainable Development Award by the National Chamber of Mining, Petroleum and Energy
  • 2008 – Peruvian Company of the Year by the “Asociación Civil Empresa Peruana del Año” (Peruvian Company of the Year Civil Association)
  • 2008 – Luis Hochschild Award by the Peruvian Institute for Business Action