conga project eia executive summary

Minera Yanacocha S.R.L. Conga Project

Environmental Impact Study

Executive Summary

February 2010

prepared for: Minera Yanacocha S.R.L.

Av. Víctor Andrés Belaúnde Nº 147, Vía Principal 103, Edificio Real Diez, Piso 4,

San Isidro, Lima 27, Perú Telephone: (511) 215-2600

prepared by:

Knight Piésold Consultores S.A. Calle Aricota 106, 5° Piso

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

KP Project No. LI202.00165.04

Environmental Impact Study Executive Summary, Rev 0

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Executive Summary

Table of Contents

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

Section 1.0 - Background and Legal Framework ....................................................1-1 1.1 Introduction ...................................................................................................................................1-1 1.2 History of the Operations Carried Out in Conga ...........................................................................1-2 1.3 Current Activities in Conga ...........................................................................................................1-2 1.4 Legal Framework Supporting the EIS ...........................................................................................1-2

1.4.1 General Peruvian Regulations ......................................................................................1-3 1.4.2 Specific Rules Applicable to the Conga Project............................................................1-4

Section 2.0 - General Description of the Project .....................................................2-1

Section 3.0 - Delimitation of the Environmental and Social Area of Direct Influence and Area of Indirect Influence...................................................................................3-1 3.1 Areas of Environmental Influence .................................................................................................3-1 3.2 Areas of Socio-economic Influence ..............................................................................................3-3

3.2.1 Determination of the Area of Direct Influence...............................................................3-3

Section 4.0 - Geographical, Environmental and Human Interest Characteristics 4-1 4.1 Physical Environment....................................................................................................................4-1

4.1.1 Location.........................................................................................................................4-1 4.1.2 Geomorphology and Relief ...........................................................................................4-1 4.1.3 Climate and Meteorology ..............................................................................................4-2 4.1.4 Air Quality......................................................................................................................4-2 4.1.5 Noise and Vibration.......................................................................................................4-3 4.1.6 Geology and Seismicity.................................................................................................4-3 4.1.7 Soils...............................................................................................................................4-3 4.1.8 Surface Water ...............................................................................................................4-4 4.1.9 Groundwater..................................................................................................................4-4

4.2 Biological Environment..................................................................................................................4-5 4.2.1 Flora and Vegetation.....................................................................................................4-5 4.2.2 Terrestrial Fauna...........................................................................................................4-5 4.2.3 Aquatic Life....................................................................................................................4-6

4.3 Human Interest Environments ......................................................................................................4-7 4.3.1 Landscape.....................................................................................................................4-7 4.3.2 Archaeology ..................................................................................................................4-7 4.3.3 Road Traffic...................................................................................................................4-7


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Section 5.0 - Project Components ............................................................................5-1 5.1 Infrastructure .................................................................................................................................5-1

5.1.1 Mine Facilities................................................................................................................5-1 5.1.2 Processing Facilities .....................................................................................................5-1 5.1.3 Tailings Storage Facility ................................................................................................5-1 5.1.4 Ancillary Facilities and Access Roads ..........................................................................5-2

5.2 Labor Requirement .......................................................................................................................5-2

Section 6.0 - Possible Environmental and Social Impacts .....................................6-1 6.1 Environmental Impacts Analysis ...................................................................................................6-1

6.1.1 Relief and Geomorphology ...........................................................................................6-1 6.1.2 Soils...............................................................................................................................6-1 6.1.3 Air Quality......................................................................................................................6-1 6.1.4 Noise and Vibrations .....................................................................................................6-1 6.1.5 Surface Water ...............................................................................................................6-2 6.1.6 Groundwater..................................................................................................................6-2 6.1.7 Flora and Vegetation.....................................................................................................6-2 6.1.8 Terrestrial Fauna...........................................................................................................6-2 6.1.9 Aquatic Life....................................................................................................................6-2 6.1.10 Landscape.....................................................................................................................6-3 6.1.11 Pongo-Conga Corridor ..................................................................................................6-3

6.2 Socio-economic Impacts ...............................................................................................................6-3 6.2.1 Identification of Impacts ................................................................................................6-3 6.2.2 Impact Assessment and Rating ....................................................................................6-4

Section 7.0 - Preventive, Control, and Mitigation Measures...................................7-1 7.1 Impact Mitigation Measures ..........................................................................................................7-2

7.1.1 Impact Mitigation – Geomorphology and Relief ............................................................7-2 7.1.2 Impact Mitigation – Air Quality ......................................................................................7-2 7.1.3 Impact Mitigation – Noises and Vibration......................................................................7-2 7.1.4 Impact Mitigation - Soils ................................................................................................7-3 7.1.5 Impact Mitigation – Surface Water................................................................................7-3 7.1.6 Impacts Mitigation - Groundwater .................................................................................7-7 7.1.7 Impacts Mitigation – Flora and Vegetation....................................................................7-8 7.1.8 Impacts Mitigation – Terrestrial Fauna........................................................................7-10 7.1.9 Impacts Mitigation – Aquatic Life ................................................................................7-10 7.1.10 Impacts Mitigation - Landscape ..................................................................................7-11 7.1.11 Impacts Mitigation – Road Traffic ...............................................................................7-11

7.2 Solid Waste Management Plan...................................................................................................7-13 7.3 Emergency and Contingency Response Plan ............................................................................7-14

Section 8.0 - Social Baseline Summary....................................................................8-1 8.1 General Study Area.......................................................................................................................8-1

8.1.1 Demography..................................................................................................................8-1 8.1.2 Characteristics of Household Members ........................................................................8-1 8.1.3 Housing Characteristics ................................................................................................8-1 8.1.4 Basic Services...............................................................................................................8-2 8.1.5 Education ......................................................................................................................8-3 8.1.6 Health ............................................................................................................................8-3 8.1.7 Employment ..................................................................................................................8-4 8.1.8 Economic Activities .......................................................................................................8-5 8.1.9 Perceptions ...................................................................................................................8-5


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8.2 Specific Study Area.......................................................................................................................8-6 8.2.1 Demography..................................................................................................................8-6 8.2.2 Characteristics of Household Members ........................................................................8-6 8.2.3 Housing Characteristics ................................................................................................8-6 8.2.4 Education ......................................................................................................................8-7 8.2.5 Health ............................................................................................................................8-8 8.2.6 Employment ..................................................................................................................8-9 8.2.7 Economic Activities .......................................................................................................8-9 8.2.8 Perceptions .................................................................................................................8-10 8.2.9 SSA Water Sources ....................................................................................................8-11

8.3 Stakeholders ...............................................................................................................................8-11 8.4 Area of Direct Influence...............................................................................................................8-11

Section 9.0 - Summary of the Community Relations Plan......................................9-1 9.1 Specific Community Relations Plan ..............................................................................................9-1

9.1.1 Infrastructure and Basic Services for Development......................................................9-2 9.1.2 Economic Development ................................................................................................9-2 9.1.3 Health and Nutrition ......................................................................................................9-2 9.1.4 Education ......................................................................................................................9-3 9.1.5 Institutional Strengthening.............................................................................................9-3

9.2 Social Impact Management Plan ..................................................................................................9-3 9.2.1 Construction of the New North-South and East-West Corridors...................................9-3 9.2.2 Road Safety Plan ..........................................................................................................9-4 9.2.3 Land Acquisition Social Support Program (LASSP) .....................................................9-4 9.2.4 Code of Conduct for Workers, Contractors and/or Consultants ...................................9-4 9.2.5 Culture and Local Customs Promotion Policy...............................................................9-4 9.2.6 Local Contracting and Purchasing Policy .....................................................................9-5 9.2.7 Local Employment and Training Plan (LETP)...............................................................9-5 9.2.8 Strengthening of Design Skills and Investment Project Management of Local Governments.................................................................................................................................9-5

9.3 Social Communication Plan ..........................................................................................................9-5 9.3.1 Internal Communication Plan........................................................................................9-6 9.3.2 External Communication Plan.......................................................................................9-6

9.4 Participatory Social and Environmental Monitoring Plan ..............................................................9-6 9.4.1 Phases for the PSEMP Preparation and Implementation.............................................9-6

Section 10.0 - Conceptual Closure Plan.................................................................10-1 10.1 Progressive Closure....................................................................................................................10-1 10.2 Final Closure ...............................................................................................................................10-1

10.2.1 Dismantling..................................................................................................................10-1 10.2.2 Demolition, Salvage and Disposal ..............................................................................10-1 10.2.3 Physical Stability .........................................................................................................10-1 10.2.4 Chemical Stability........................................................................................................10-2 10.2.5 Land Shape Restoration .............................................................................................10-3 10.2.6 Revegetation ...............................................................................................................10-3 10.2.7 Social Programs..........................................................................................................10-3 10.2.8 Maintenance and Monitoring.......................................................................................10-3

10.3 Post-closure Conditions ..............................................................................................................10-4


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List of Charts Chart 1 Area of Direct Influence (ADI) Chart 2 Area of Indirect Influence (AII) Chart 3 Modifications in the Storage Capacity of Lentic Streams As The Result Of The Project Chart 4 Population, Surface, And Density Chart 5 Housing Water Supply Chart 6 Illiteracy Rate Chart 7 Number of Health Care Centers Chart 8 Population Distribution According to the Employed EAP, Unemployed EAP, and Non-EAP Chart 9 Hamlet Population According to the Scope of the Study Chart 10 Heads of Household Distribution According to Gender Chart 11 Type of Housing Water Supply Chart 12 Education Level Achieved in Population Over 15 Years Old Chart 13 Number of Sick People During the Last 15 Days Chart 14 Population Distribution According to WAP, EAP and Non-EAP Chart 15 Number and Average Size of Agricultural Units (AU)

Tables Table 1 Environmental Impact Matrix – Construction Stage Table 2 Environmental Impact Matrix – Operation Stage Table 3 Social Impact Matrix Table 4 Summary of Mitigation Measures Table 5 Environmental Monitoring Plan

Graphics Graphic 1 Preliminary Schedule of the Project Development

Figures Figure 1 General Location of the Project Figure 2 General Layout of the Project Figure 3 Area of Direct and Indirect Influence of the Project Based on the Environmental Component

of Greater Relevance – Construction Stage Figure 4 Area of Direct and Indirect Influence of the Project Based on the Environmental Component

of 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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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 from the city of Lima, in the districts of Sorochuco and Huasmín in the Province of Celendín; and in the District of La Encañada in the Province of Cajamarca (Figure 1). The area associated with the development of the mining project is located in the region of Jalca, at an altitude that ranges between 3,700 to 4,262 meters. The owner of the Conga Project (the project) is Minera Yanacocha S.R.L. (MYSRL), and the main companies taking part in it are the following: Compañía de Minas Buenaventura (CMB), Newmont Mining Corporation (Newmont) and the International Finance Corporation (IFC). For the purposes of this document the owner of the project shall be hereinafter be referred to as Minera Yanacocha S.R.L., or its abbreviation MYSRL. As it is currently defined, the main components of the Conga Project are two porphyric deposits to be exploited, Perol and Chailhuagón; and it considers the processing of copper-gold-and-silver-bearing ores through crushing, milling, and flotation conventional processing methods at the plant with a nominal capacity of 92,000 tons per day (tpd), which will allow processing the mineral content of 3.1 billion pounds of copper and 11.6 million ounces of gold. Mining will be completed in approximately 19 years, out of which ore will be processed during the last 17 years. Finally, concentrates are to be transported, as it has been currently planned, to a port on the north coast in trucks for their dispatch to the international market. The proposed infrastructure includes the Perol and Chailhuagón pits, the Perol and Chailhuagón waste dumps, topsoil stockpiles, ore processing facilities, tailings management facilities, water reservoirs, borrow material areas, among other ancillary facilities, which will comprise a total area of approximately 2,000 hectares. Likewise, the construction of a 220 kV power line from the Cajamarca Norte sub-station is planned. The development of the Conga Project comprises the mining of the Perol and Chailhuagón pits reserves. Mining of the Chailhuagón pit will start the first year of the project operation and will last approximately 14 years, during which 160 million tons (Mt) of ore will be processed. On the other hand, mining of the Perol pit will be carried out during the entire life of the project and mining will last approximately 19 years, during which 344 Mt of ore will be processed during the last 17 years. The main access for the development of the project construction and operation activities will be built on the same path of the road that will be used for the development of the Conga Project exploration activities. For the development of this EIS, MYSRL hired the services of the company Knight Piésold Consultores S.A. (Knight Piésold), which is listed in the register of authorized consulting companies to prepare Environmental Impact Studies for the mining sector of the Ministry of Energy and Mines (MEM), by means of Directorial Resolution N° 169-2009-EM/AAM.


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1.2 History of the Operations Carried Out in Conga The first exploration activities of the Conga Project began with the purpose of finding gold deposits near the Yanacocha complex and in 1991 the Chailhuagón and Perol deposits (25 km northeast of the Yanacocha complex) were discovered by CEDIMIN (Compañía de Exploraciones, Desarrollo e Inversiones Mineras). Between 1994 and 2000, CEDIMIN carried out some research in both deposits. In 2001, after the acquisition of CEDIMIN by CMB, the Conga Project joined the operations of the Yanacocha complex under the administration of MYSRL. Since then, MYSRL developed the planning of the necessary geotechnical and hydrogeological studies, as well as the management of permits and land acquisition necessary for the start-up of the complete exploration campaign. These permits involved research projects and the rescue of archaeological sites in the project area, as well as those permits for the use of water, energy, and fuel supply during the execution of the exploration and the setting up of a camp with an induction and training program for the workers of the project. The exploration activities of the Conga Project began in 2004 in the Chailhuagón and Perol deposits, and based on such results the development of the Conga Project was decided. From 2005 to 2007 environmental baseline studies were carried out and from 2008 they were updated and the development of the project engineering began, while drilling activities took place during 2009. In 2008 by means of Directorial Resolution N° 243-2008-MEM/AAM, the Semi-detailed Environmental Impact Study (sdEIS) for the Conga Exploration Project was approved. Subsequently, in April 2009, by means of Directorial Resolution N° 081-2009-MEM/AAM, the First Modification of the semi-detailed Environmental Impact Assessment (sdEIS) for the Conga Exploration Project was approved, and then a Second Modification was submitted.

1.3 Current Activities in Conga Most of the area where the project will be developed (and adjacent areas) have mining activities in progress. Currently, MYSRL develops its operating activities in two geographic zones, the west zone (Cerro Negro, La Quinua and Cerro Yanacocha) and the east zone (Carachugo and Maqui Maqui). Open pit mining is carried out in these five mining zones with the heap leaching process and a production plant named Gold Mill with a sand mill deposit in the La Quinua mining zone. Likewise, MYSRL is gradually closing three pits. The Conga Project zone will be one more mining zone of the Yanacocha complex, which joins the Maqui Maqui mining zone through an access currently used for the development of exploration activities in the Conga Project and that will serve for the construction of the project operations main access. The Conga Project is part of the mining district that contains different copper and gold deposits, most of which belong to MYSRL. There are other deposits such 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 rules related to the environmental mining issue correspond to Title Fifteen of the “Single Amended Text of the General Mining Law” (Supreme Decree N° 014-92-EM) and the “Regulations on Environmental Protection in Mining Metallurgical Activities” (Supreme Decree Nº 016-93-EM, amended by Supreme Decrees N° 059-93-EM, 029-99-EM, 058-99-EM and 022-2002-EM). Likewise, the “Regulations on Citizen Participation in the Mining Sub-sector” (Supreme Decree Nº 028-2008-EM, supplemented by Ministerial Resolution Nº 304-2008-MEM/DM), the “preliminary commitment to develop mining activities” (Supreme Decree Nº 042-2003-EM) and the requirements of the General Bureau of Mining Environmental Affairs (DGAAM in Spanish), the General Mining Bureau (DGM in


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Spanish) and the General Office of Social Management of the MEM were considered. The guidelines from 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 Water Resources Law (Law N° 29338), National Environmental Quality Standards for Water (Supreme Decree Nº 002-2008-MINAM), the Regulations on National Environmental Quality Standards for Air (Supreme Decree N° 074-2001-PCM, Supreme Decree N° 069-2003-PCM, Supreme Decree Nº 003-2008-MINAM), the Regulations on National Environmental Quality Standards for Noise (Supreme Decree Nº 085-2003-PCM) and the Natural Protected Areas Law (Law Nº 26834), which have been quoted in each relevant section 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 environment performance through 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 are divided as follows: General Peruvian Regulations and Specific Regulations applicable to the Project.

1.4.1 General Peruvian Regulations

Constitution of the Republic of Peru (1993)

General Environmental Law (Law N° 28611)

Legal Framework for Private Investment Growth (Legislative Decree N° 757-1991)

Law on Environmental Impact Assessment of Works and Activities (Law Nº 26786)

Organic Law for the Sustainable Use of Natural Resources (Law Nº 26821)

Conservation and Sustainable Use of Biological Diversity Law (Law Nº 26839)

Law that establishes the National Environmental Impact Assessment System (Law Nº 27446)

Legal Framework of the National Environmental Management System (Law Nº 28245)

Cases in which the approval of Environmental Impact Studies and Environmental Management and Enhancement Programs requires the technical opinion of the INRENA (Supreme Decree N° 056-97-PCM, amended by Supreme Decree N° 061-97-PCM)

National Environmental Assessment and Auditing System Law (Law N° 29325)

Act of Incorporation, Organization and Duties of the Ministry of Environment (Legislative Decree N° 1013)

National Environmental Policy (Supreme Decree N° 012-2009-MINAM)

Title XIII of the Criminal Code, Crimes against Ecology (Legislative Decree Nº 635)

Water Resources Law (Law Nº 29338)

National Environmental Quality Standards for Water (Supreme Decree Nº 002-2008-MINAM)

It is ordered that the Water Authority controls the use of materials that water hauls and deposits in its riverbeds or channels (Law N° 26737)

Regulations of the Law that governs the use of materials that water hauls and deposits in its riverbeds or channels (Supreme Decree N° 013-97-AG, amended by Supreme Decree N° 017-2003-AG)

General Health Law (Law Nº 26842)

Law that states the obligation of preparing and submitting contingency plans (Law Nº 28551)

Guidelines for the preparation of contingency plans to be used in mining metallurgical activities related to the handling of cyanide and other toxic or hazardous substances (Directorial Resolution Nº 134-2000-EM/DGM)


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Law that governs Land Transport of Materials and Hazardous Waste (Law Nº 28256)

National Regulations on Land Transport of Materials and Hazardous Waste (Supreme Waste Nº 021-2008-MTC)

National Cultural Heritage General Law (Law Nº 28296) and its regulations (Supreme Decree N° 011-2006-ED)

Archaeological Research Regulations (Supreme Resolution Nº 004-2000-ED)

Amendment of Supreme Decree Nº 004-2009-ED, which establishes terms for the preparation, approval of final reports of archaeological assessment projects and the certification of Inexistence of Archeological Remains (Supreme Decree Nº 009-2009-ED)

Special procedures for the implementation of Supreme Decree Nº 009-2009-ED (Guideline Nº 004-2009-DN/INC)

Approval of the Agreement on Biological Diversity adopted in Rio de Janeiro (Legislative Resolution Nº 26181)

Forest and Wildlife Law and its regulations (Legislative Decree Nº 1090 and Supreme Decree Nº 014-2001-AG)

Approval of the National Wetland Conservation Strategy in Peru (Administrative Resolution Nº 054-96-INRENA)

Farming Communities Law and its regulations (Law Nº 24656 and Supreme Decree Nº 008-91-TR)

Private Investment Law for the Development of Economic Activities carried out in the National Territory and on the Lands of Farming and Native Communities (Law Nº 26505, amended by Law Nº 26570 and Law Nº 29261)

Law on the Foundations of Decentralization (Law Nº 27783)

Municipal Organic Law (Law Nº 27972)

Regulations on Land and Urban Development (Supreme Decree Nº 027-2003-VIVIENDA)

General Law on Solid Waste (Law N° 27314) and amendment (Legislative Decree Nº 1065)

Regulations on the General Law on Solid Waste (Supreme Decree Nº 057-2004-PCM)

Regulations on the National Environmental Quality Standards for Air (Supreme Decree N° 074-2001-PCM, Supreme Decree N° 069-2003-PCM, Supreme Decree Nº 003-2008-MINAM)

Regulations on the National Environmental Quality Standard for Noise (Supreme Decree Nº 085-2003-PCM)

Classification of Endangered Species of Wild Flora (Supreme Decree N° 043-2006-AG)

Classification of Endangered Species of Wild Fauna and the Ban on Animal Hunting, Capture, Ownership, Transport or Export for Commercial Purposes (Supreme Decree Nº 034-2004-AG)

Organic Law governing Hydrocarbon Activities in the National Territory (Law Nº 26221)

Investment Promotion Law in the Agriculture Sector (Law Nº 26797)

Regulations on the Supervision of Explosives for Civil Uses (Supreme Decree Nº 019-71-IN)

1.4.2 Specific Rules Applicable to the Conga Project

Single Amended Text of the General Mining Law (Supreme Decree Nº 014-92-EM)

Regulations for Environmental Protection during Mining Metallurgical Activities (Supreme Decree N° 016-93-EM, amended by Supreme Decrees

Nº 059-93-EM, 029-99-EM, 058-99-EM and 022-2002-EM)

Regulations for Citizen Participation in the Mining Sub-sector (Supreme Decree N° 028-2008-EM)


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Rules regulating the Citizen Participation Process in the Mining Sub-sector (Ministerial Resolution Nº 304-2008-MEM/DM)

Regulations on transparency, access to public environmental information and citizen participation and consultation in environmental matters (Supreme Decree Nº 002-2009/MINAM)

Maximum Allowable Levels of Elements and Compounds existing in Gas Emissions from Mining Metallurgical Units (Ministerial Resolution Nº 315-96-EM/VMM)

Maximum Allowable Levels of Liquid Effluents in Mining Metallurgical Activities (Ministerial Resolution Nº 011-96-EM/VMM)

Law on Mine Closure (Law Nº 28090, amended by Law Nº 28234 and Law Nº 28507)

Regulations of the Law on Mine Closure (Supreme Decree Nº 033-2005-EM, amended by Supreme Decree N° 035-2006-EM and Supreme Decree N° 045-2006-EM)

Regulations on Mining Safety and Hygiene (Supreme Decree Nº 046-2001-EM)

Law for Electrical Concessions and its regulations (Decree Law Nº 25854 and Supreme Decree Nº 009-93-EM)

Rule on Easement Imposition (Ministerial Resolution Nº 111-88-EM)

General Law on Transport and Road Traffic (Law Nº 27181, amended by Legislative Decree Nº 1051)

Maximum Allowable Limits of Contaminant Emissions for Motor Vehicles in the Road System (Supreme Decree Nº 047-2001-MTC)

Regulations on Weight and Dimensions of Vehicles in the National Road System (Ministerial Resolution Nº 375-98-MTC)

Commitment as a preliminary requirement for the development of mining activities and supplementary rules (Supreme Decree Nº 042-2003-EM)

The EIS of the Conga Project is submitted to the MEM, the General Bureau of Environmental Affairs of the 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 and Celendín, the District Municipalities of La Encañada, Sorochuco and Huasmín and the Farming Community of Huangashanga. Through these institutions, the complete text of the EIS, in which this Executive 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 N° 260, San Borja – Lima.

General Bureau of Environmental Affairs of the Ministry of Agriculture (MINAG), located at Calle Diecisiete N° 355, San Isidro – Lima.

Regional Office of Energy and Mines of Cajamarca (DREM – Cajamarca), located at Jr. Miguel Gonzáles Lt. 5, 3er piso, Urbanización Horacio Zevallos – Cajamarca.

Regional Government of Cajamarca, located at Jr. Santa Teresa de Journet N° 351, Urbanización La Alameda – Cajamarca.

Provincial Municipality of Cajamarca, located at Jr. Cruz de Piedra N° 613, Cajamarca – Cajamarca.

Provincial Municipality of Celendín, located at Jr. José Gálvez N° 614, Celendín – Cajamarca.

District Municipality of La Encañada, located at Jr. Jorge Villanueva N° 1740, La Encañada – Cajamarca.

District Municipality of Sorochuco, located at Jr. Amazonas s/n, Plaza de Armas, Sorochuco – Cajamarca.

District Municipality of Huasmín, located at Jr. Arequipa N° 047, Plaza de Armas, Celendín – Cajamarca.


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Office of the Farming Community of Huangashanga.

Information and Culture Center of Minera Yanacocha, located at Jr. El Comercio N° 251, Cajamarca – Cajamarca.

All the opinions and queries regarding this study, submitted through the official channels and within the terms established by the laws in force, are considered in the decision-making process of the MEM. G:\202\00165.17\External\POL\FromContractor_KP\0025-T_DV10_0590\Conga_EIA.doc


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Section 2.0 - General Description of the Project

MYSRL has planned to develop the Conga Project, which will consist of the exploitation of two gold-bearing (Au) porphyry copper (Cu) deposits located east of the area where MYSRL currently develops its operations in the Yanacocha complex, in a mineralization belt with other porphyric deposits in the surrounding area. The extraction of 1,085 Mt of material (ore, waste rock and low grade ore) is foreseen, equivalent to 504 Mt of material projected over 19 years of mining (including preliminary mining). The ore processing rate will be 92,000 tpd. To date, geological explorations and the mining plan have determined that the Perol deposit contains a reserve of 344 Mt of ore and the Chailhuagón deposit has a reserve of 160 Mt, with an average copper grade 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 Huasmín, province of Celendín; and in the district of La Encañada, province of Cajamarca, department of Cajamarca (Figure 1). The ore to be extracted from the pits will be carried to the crushing and processing facilities. The ore will be crushed and grinded and will then be sent to a conventional flotation circuit to produce a gold-and-silver-bearing copper concentrate, which as planned will finally be transported, to trucks and taken to a port on the north coast to be dispatched to the international market. In the following sections, the activities planned for the construction and operation of the Conga Project will be described, as well as the labor requirements in these stages. Figure 2 shows the general layout of the project. Graphic 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 types of area of influence have been defined for the Conga Project: the area of direct influence and the area of indirect influence. The Area of Direct Influence (ADI) is defined as the space in which significant impacts, either negative or positive, will occur (normally related to direct impacts). The Area of Indirect Influence (AII) is defined as the space where less significant impacts (normally related to indirect impacts) will occur. It is worth mentioning that in order to measure the areas of influence of each component, an impact assessment was carried out in the entire area of study of the Conga Project, and based on such results the areas of influence specific to each component were prepared. The areas of influence have been identified taking into account the effect of the mitigation measures foreseen to counteract the effects of the foreseen environmental impacts identified. The mitigation measures identified for each sub-component analyzed are described in the Environmental Management Plan (Chapter 7 of this Executive Summary). Figures 3 and 4 show the areas of direct and indirect influence of the project based on the environmental component of greater relevance, water, in the case of the project (both surface water and ground water), for the construction and operation stages of the project. A description of the methodology related to the definition of the areas of influence for each component is presented below. Taking into account that it depends on the direct location of the infrastructure, the ADI for the relief and geomorphology components, soils, flora, and vegetation comprise the surfaces that will intervene as a result of the direct location of the project infrastructure. Due to the nature of these environmental components and the project characteristics, and considering that no impact has been foreseen beyond the direct location area, the ADI matches the AII. Both for the construction and operation stages, the ADI for air quality is defined as the area comprised between the emission sources and the isometric line that represents a particulate matter contribution of 5 µg/m3. In the specific case of the operation stage, during the ADI definition, the areas to be potentially impacted during year 8 and year 13 of this project stage were included. This limit has been considered based on the recommendations included 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 is considered insignificant when particulate matter represents 10 percent of the guideline value. In the case of the PM10, this guideline value is 50 µg/m3 (Supreme Decree Nº 074-2001-PCM), and thus the isometric line that represents the AII is equal to the isometric line of the ADI (5 µg/m3). The noise ADI is comprised of the significant sound emission sources of activities such as stripping, earthworks, among others, during the construction stage, and ore crushing, grinding, etc., during the operation stage, and the isometric line that includes those places where the basal situation is considered to be significantly disturbed. Considering the modeling of noise levels and the recommendations of the Environmental Guide for Noise Problems Management in the Mining Industry published by the MEM, the area between emission sources and the isometric line of 60 dB(A) was delimited as the ADI of impacts due to the noise produced by operations and blasting. On the other hand, to delimit the AII, the isometric line of 40 dB(A) was considered with a conservative approach, value which corresponds to a quiet urban area according to the MEM Environmental Guide.


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In the specific case of the increase in noise levels produced by the blasting in the Perol and Chailhuagón pits, it is precise (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 and operation stages of the project, that is to say, its influence would be included in the areas previously described. Regarding quantity, the ADI of surface water will comprise the drainage system that will be affected as the result of the direct location of the project infrastructure. These will be located in the basin of the Alto Chirimayo ravine, the basin of the Chailhuagón River, the basin of the Toromacho ravine, the basin of the Alto Jadibamba River and the basin of the Chugurmayo ravine. Additionally, the zones located between the different project facilities and the structures located upstream of them, which have the capacity of diverting the flows that otherwise would run until reaching the area of the direct location of the infrastructure, have been considered ADI. The inclusion or not within the ADI of the zones downstream the project facilities depends on the effect of the proposed mitigation. The AII will include the same zones of the ADI and, because the impacts outside the ADI are insignificant, due to the expected effectiveness of the proposed mitigation measures, the AII will not include additional zones. A change in the quantity of surface water is usually related to a change in quality, due to effects such as the concentration variations caused by a greater or lesser availability of water. Considering the foregoing, the ADI of surface water, regarding quality, will include the same zones defined as ADI for the quantity of surface water. Consistently with the foregoing, the quality and quantity of surface water are deemed to share the AII. Taking into account the project design philosophy, which does not envisage the discharge of effluents in any of the basins it occupies, the areas of influence for surface water quality outside the areas of influence related to the changes in the quantity of water are not defined. Regarding the relation between surface water and ground water, mainly due to the effects of the changes in the catchment and filtration areas and the interception of surface and ground water flows by the project infrastructure, it is assumed that the ADI related to ground water quantity will include the ADI related to surface water. However, taking into account that pits have a different scope of influence between the underground sub-component and the surface sub-component, it has been defined that the ADI for ground water will comprise the ADI related to surface water plus the area formed by the cone of depression of the pits, which is deemed to occur quite locally. Like in the case of surface water quantity, the AII will include the same zones of the ADI and, since the impacts outside the ADI are deemed insignificant, due to the expected effectiveness of the proposed mitigation measures, the AII will not include additional zones. Regarding surface water quality, even though there are zones where changes in the significant chemical characteristics of ground water are not expected given the geochemical nature of the rock prevailing in such environments (e.g. the area of the Chailhuagón deposit), priority will be given to the relation between the quantity and the quality of these sub-component in the definition of the areas of influence, which represents a conservative approach. Likewise, the ADI for this receiver will be defined as the zone named ADI for ground water quantity. Moreover, consistently with the analysis, both the quantity and the quality of ground water will share the AII. It is necessary to highlight the fact that the definition of the areas of influence, both direct and indirect, for the quality and quantity of surface and ground water corresponds to the project operation stage, but are also applicable, in a conservative approach, to the construction stage. Regarding terrestrial fauna, the impact mechanism in the construction stage is related to the direct occupancy of the area and the noise emissions. By doing so, habitat impact activities, such as stripping, will have an impact on the footprint of the project, due to the loss of food and shelter zones, and thus the ADI is restricted to this footprint. However, another impact refers to frightening fauna away by the noise emissions associated to the activities that will be developed in the project construction stage, they will generate a greater area of influence that would be defined by the isometric line of 40 dB(A), that would delimit the AII.


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In the case of the operation, the impact by direct occupancy of areas additional to those deemed under construction are not considered, and therefore the impact of this stage will fully take place in the area affected by the noise generation. In this way, the AII would be defined by the isometric line of 40 dB(A). The different activities of the project will impact both the quality and the availability of the aquatic life habitat. Because of this, the area of direct influence (ADI) for the hydro-biological component included the ravines that will be disturbed by the project, with an impact on water quality and quantity, as well as in bogs and lagoons within the site area. 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 accessibility contained within the visual threshold. It is important to mention that the ADI has also been considered based on human perception, and therefore it has been defined taking into account the visual accessibility from crowded sites of interest, the distance, and the atmospheric conditions. The visual accessibility zones, which are a portion of land seen from the facilities and vice versa, were created from the main project facilities. Likewise, from the baseline evaluation carried out, the project was determined to be visually inaccessible from some villages near it, and only one locality per evaluation sector was considered. It is known that as objects move away from the observer, their details start to fade away until reaching a point where they are not seen anymore. Visual thresholds depend on the Light of the day and the lightness of the atmosphere so that the most used values are between 2 and 3 km (Ramos et ál., 1976; Seinitz et ál., 1974). In the case of the project, a distance of 2 km from the project border has been considered, based on the details of the area of assessment and atmospheric conditions. The landscape ADI 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 prior to the construction stage, the works to be carried out to prevent the impact on archeological remains with tasks including the rescue of some identified elements, described in Chapter 3, will be planned. Additionally, most of the project area has the Certificate of Inexistence of Archaeological Remains (CIRA). However, as of the date of preparation of this 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 crossing the 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, on a field called general study area (GSA) which includes the department of Cajamarca, the provinces of Celendín and Cajamarca, and the districts of Huasmín, La Encañada and Sorochuco (Figure 5). The second level was focused on the local characterization, up to the villages level, on a field called specific study area (SSA) which included the following hamlets (Figure 6): Alto No. 8, Bajo Coñicorgue, Chilac No. 8, Cruz Pampa, El Alumbre, El Lirio, El Tingo, El Valle, Faro Bajo, Huangashanga, Jadibamba Baja, Jerez – Shihuat, La Chorrera, Quinuapampa, San José de Pampa Verde, San Juan de Hierba Buena, Shanipata, Tablacucho, Uñigán Lirio, Uñigán Pululo, Yerba Buena Chica, Quengorío Bajo, Huasiyuc Jadibamba, Piedra Redonda Amaro, Chugurmayo, Namococha, El Porvenir de la Encañada, Lagunas de Combayo, Agua Blanca, Quengorío Alto, San Nicolás and Santa Rosa de Huasmín.


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From the receiver impact analysis, in which the residual impacts that the Conga Project generates on each receiver were evaluated and classified, it can be concluded that the villages making up the Project’s Area of Direct Influence (ADI) are as follows:

Chart 1 Area of Direct Influence (ADI)

Quengorío Bajo Huasiyuc Jadibamba Piedra Redonda Amaro Chugurmayo Namococha El Porvenir de la Encañada Lagunas de Combayo Agua Blanca Quengorío Alto San Nicolás Santa Rosa de Huasmín Ten of these villages coincide with the hamlets in which the Project site area (CAEP, by its initials in Spanish) is located, and the last one borders on this area. These hamlets have been selected within the ADI because of the residual impact magnitude associated with the land use related to the Project infrastructure site and the activities carried out by MYSRL in order to make this site viable. Unlike the rest of the Specific Study Area (SSA) hamlets, in the pre-construction stage, these hamlets present additional impacts: slowing down of agricultural activities and decrease in long-term land investments. In subsequent stages, additional negative impacts are generated, which affect certain hamlets to a greater extent, such as the reduction to access some resources in the area (e.g. trouts) and the perceptions of agricultural yield decrease by noise and dust. Likewise, although all the SSA villages are affected to a certain extent by road disruptions (disarticulation of economic corridors and rural road change), greater effects are produced regarding those villages where the Project is located or those very close to such area. Now that the hamlets making up the ADI are identified, it can be concluded that the rest of the SSA hamlets (21 hamlets) constitute the Area of Indirect Influence (AII) (Figure 8), due to the fact that impacts of considerable significance will not affect them. In addition, the provinces of Celendín and Cajamarca, which - according to what was presented in the previous analysis - have negative impacts on the pre-construction stage for perceptions of possible environmental impacts, are also included in the AII (Chart 2).


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Chart 2

Area of Indirect Influence (AII)

Alto No. 8 Bajo Coñicorgue Chilac No. 8 Cruz Pampa El Alumbre El Lirio El Tingo El Valle Faro Bajo Huangashanga Jadibamba Baja Jerez – Shihuat La Chorrera Quinuapampa San José de Pampa Verde San Juan de Hierba Buena Shanipata Tablacucho Uñigán Lirio Uñigán Pululo Yerba Buena Chica Districts of Sorochuco, La Encañada and Huasmín Provinces of Celendín 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 some significant negative impacts is estimated. Additionally, it is important to indicate that the most significant positive impacts on the socio-economic subcomponent are likely to occur within the areas of influence defined.


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Section 4.0 - Geographical, Environmental and Human Interest Characteristics

The area environmental baseline where the Conga Project will be located is briefly presented below. This baseline involves both the Project’s direct site area (DSA) and the areas environmentally related to the DSA depending on each environmental component evaluated. Neighboring areas that are not necessarily within the Project’s area of influence have also been included in this characterization. Both the Project’s area of direct influence (ADI) and the area of indirect influence (AII) were presented in Chapter 3 of this Executive Summary. The total study area for each environmental component (receiver) refers to the environmental baseline study area. The social baseline summary is shown in Chapter 8 of this Executive Summary.

4.1 Physical Environment

4.1.1 Location

The Conga Project is located in the districts of Encañada, Huasmín and Sorochuco, in the provinces of Cajamarca and Celendín, department of Cajamarca, in the Andean north of Peru, about 73 km northeast of the city of Cajamarca (Figure 1) and 585 km from the city of Lima. The Project is located in the catchment area of the Toromacho ravine, the Alto Jadibamba River, the Chugurmayo ravine, the Alto Chirimayo ravine and the Chailhuagón River basins, with altitudes between 3,700 and 4,262 meters. The area evaluated by the environmental baseline will be mainly delineated by the Toromacho ravine, the Alto Jadibamba River, the Chugurmayo ravine, the Alto Chirimayo ravine and the Chailhuagón River basins. Waters from all these basins are diverted to the Marañón River, a tributary of the Amazon River flowing into the Atlantic Ocean. Another characteristic of the study area is the existence of several lagoons, such as Chailhuagón, Mishacocha, Perol, Mamacocha, Alforja Cocha, Azul, Mala, Cortada, among others. Access to the Project area will be established by a main access road: from Ciudad de Dios located at Kilometer 683 of the North Pan-American Highway, through Chilete, “Kilometer 24” in the MYSRL operations, finally going through the Maqui Maqui – Totoracocha – Conga Project road. Additionally, there are two alternative roads from Cajamarca going as far as the Project area. One road goes through Baños del Inca – La Encañada – Michiquillay arriving to the Conga Project exploration camp, with a total of 66 km; and the second road goes through Otuzco – Combayo, reaching the Conga Project exploration camp, with a total of approximately 56 kilometers.

4.1.2 Geomorphology and Relief

The features presented in the study area are a result of a long evolution originated by tectonic factors, erosive and depositional processes which have modeled the relief up to its current state. At great landscape level, mountain and fluvial-alluvial plain units have been identified. The great fluvial-alluvial plain landscape consists of plains of alluvial (fluvial and colluvial-alluvial) origin. Despite the fact that these plains occupy small surfaces, they have been differentiated as a great landscape due to the contrast of their relief. This great landscape includes the recent fluvial, colluvial-alluvial and glacial river high plain landscapes. The great mountain landscape includes rugged and strongly corrugated geological formations. This great landscape includes intrusive rock mountains, volcanic rock mountains, folded rock strata sedimentary mountains, plutonic rock mountains, and sedimentary rock mountains.


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4.1.3 Climate and Meteorology

The information from the “Conga Project Climatological Data Analysis” report (Knight Piésold, 2008) was considered for the climatic characterization. This study was conducted in order to establish design criteria for the Project and it includes regional meteorological stations operated by the National Meteorology and Hydrology Service (SENAMHI, by its initials in Spanish), as well as meteorological stations operated by MYSRL. The monthly average maximum air temperature ranges between 10.1°C and 13.1°C. In the case of minimum temperature, a monthly average from 2.5°C to 3.6°C is observed. In the Project area, the coldest temperatures occur in the dry season (from May to September) and the highest temperatures in the 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. In the “Conga Project Climatological Data Analysis” (Knight Piésold, 2008), it was determined that the evaporation records from the stations operated by MYSRL do not have an adequate record period; therefore, the Project area potential evaporation was evaluated by means of theoretical formulas. By using the EPIC (Erosion-Productivity Impact Calculator) computational model, the annual potential evaporation was estimated between 1,110 m and 1,211 meters. The highest levels would appear from September to January, with values above 98 mm and the lowest level would appear in June, with 78.6 millimeters. In order to predict the seasonal fluctuations of the Project area monthly maximum precipitations, rainfall records were extended through the use of a regression analysis. Such analysis is used to extend the record period of a specific station, by correlating it with data from other close stations with more extensive record periods. According to this regression, the annual precipitation average was estimated between approximately 1,126.2 mm and 1,143.4 mm, while the minimum was estimated between 736.4 mm and 736.7 mm, and the annual maximum, between 1,699.4 mm and 1,865.4 mm. The average precipitation was estimated between 893.5 mm and 916.0 mm during the wet season, while it was estimated between 230.8 mm and 240.7 mm during the dry season. A specific analysis of the El Niño Southern Oscillation (ENSO) phenomenon was conducted with regard to the precipitation variability in the Project area. The Oceanic Niño Index (ONI) from the National Oceanic and Atmospheric Administration (NOAA) of the United States was used to determine the variability episodes. In general, it is observed that high precipitation values did not occur during the ENSO warm episodes. Upon comparing precipitation for ENSO and NON-ENSO months, cases where the average precipitation in ENSO months exceeds the average precipitation in NON-ENSO months is scarce. The wind speed presents an annual average between 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 radiation levels range from 4,500 Wh/m2 and 6,000 Wh/m2 in the Project area, as a result of its latitudinal location, altitude and cloudiness level. The highest level for this parameter is recorded in October and November, while the lowest one occurs in February.

4.1.4 Air Quality

Two permanent monitoring stations and seven sampling stations were set up for measuring baseline conditions. At the monitoring points installed, the air quality was measured in the future central operation area and the villages closest to the Project. In samplings carried out on a quarterly basis between 2006 and 2008, PM10 values above the applicable standard were not found. Likewise, PM10 values exceeding the applicable standard were not found during the permanent monitoring (2004 – 2007). As for the particulate matter metal content, only traces


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or values slightly above the equipment detection limit were found. Regarding gas content, all the carbon monoxide (CO), nitrogen dioxide (NO2) and sulfur dioxide (SO2) records were below the respective standards.

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) at eight monitoring stations within the sensitive sector environment in the study area, in April, July, and October 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 period, the ECA established at 50 dB(A) for residential areas was exceeded six times, at the stations located in Quengorío, San Nicolás, 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 future Project facilities, in the areas of San Nicolás, Huayra Machay, Amaro, Agua Blanca, and Quengorío. Additionally, two speed level measurements were conducted in the San Nicolás area. As a reference, values registered with the ISO 2631 standard were compared, finding acceleration levels within the acceptable value range. Regarding the speed level, values established by the Federal Transport Administration (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, Eocene volcanic rocks and Eocene/Oligocene/Miocene intrusive rocks. In the Project area, the Cretaceous Goyllarisquizga, Chúlec, Pariatambo, Inca, Santa, Farrat, Pulluicana and Cajamarca formations can be found, as well as the Tertiary Volcánico Porculla and Volcánico Huambos formations and the Dacite Stock 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 the seismic events worldwide have occurred. The regional tectonic framework on a large scale is governed by the Nazca plate and the continental South American plate interaction, which occurs in a subduction plane on the Pacific Ocean subsoil on the Peruvian coast. It is worth mentioning that earthquakes with magnitudes of 5.5 or more on the Richter scale, within a 100-km radius of the Project area, have not been registered. The potential deterministic design values of peak ground acceleration (PGA) for the Project area range between 0.05 g and 0.21 g. These accelerations are produced by earthquakes (M equal to 8 on the Richter 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, and road cuts. From the total analyzed points, 197 samples were obtained for characterization purposes, as well as 47 samples for heavy metals analysis. Twenty-three soil units, taxonomically grouped and described as a subgroup (Soil Taxonomy – USDA), to which a local name was assigned, were identified. These units were delimited through the subgroup cartographic units, combined association, complex, and association. Edaphic units have been grouped in 16 combined associations (3 edaphic units and 1 miscellaneous area), 8 complexes, and 23 associations (edaphic associations with miscellaneous rock). Five groups with a large use capacity were found. The first one corresponds to lands suitable for clean cultivation (A), finding lands of medium and low agrological quality, which are limited by edaphic and


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topographic factors. Furthermore, lands suitable for permanent cultivation (C) were found, presenting a limitation for perennial cultivation establishment. Likewise, two types of lands suitable for 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 group corresponds 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 with timber-yielding species. Finally, protection lands (X) were found, with extreme limitations preventing their agricultural and/or forest exploitation. In accordance with the current land use classification of the International Geographical Union (IGU), the following was identified: natural meadow lands, forest lands, cultivated vegetation lands, non-use and/or unproductive lands, urban lands and/or governmental and private facilities. With respect to the soil metal content showing the area mineralization characteristics, values that exceed the CCME reference values were found, being the Se and As the outstanding ones. For both of them, some sampling points that exceeded such guidelines are in the Project site area.

4.1.8 Surface Water

The characteristics of the surface water flow in the Project area depend on groundwater precipitation and discharges. Seasonal flows vary widely and different magnitudes occur during the wet season. While during the dry season, flows are lower, they may significantly increase due to specific precipitation events in June and September. The baseflow mainly related to groundwater discharges has been defined as the average value in July and August; the two months in which precipitation does not have a significant influence on the surface flow most days. As it was verified by the flow rate ranges in different basins, surface water flows in the Project area are very variable in general and the record analysis suggests that flows in the ravines are highly dependent on precipitation. The variation in the dry season flows is especially sensitive to lower precipitation events, which may generate large increases in flows. Generally, the surface water quality in the study area basins presents acceptable and standard characteristics. Regarding metal concentration, the ECA for Category 3 were met in the five basins. Likewise, dissolved oxygen levels were found to generate good anaerobic conditions. Coliform concentrations are also below the ECA for Category 3, except for the Alto Jadibamba River basin. pH ranges are similar, presenting neutral to alkaline conditions, with predominant calcium-bicarbonate content. The Alto Chirimayo ravine basin presents 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 the seepage directed by precipitation and recharge. There is data available on 96 wells, which were used to develop an interpretation of the groundwater levels and flow rate directions, as well as the geology permeability and underlying controls. The tailings storage facility basin and the Perol waste dump areas are widely unsaturated, but they may retain precipitation and assist in seepage limited to 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 basin valley and the thick moraine of the Mamacocha ravine forming the surface of the Toromacho ravine west ridge. Groundwater levels are mainly shallow, which are measured at 1.8 m below the ground surface. Soils in test pits were mainly wet in bogs and areas around them. The groundwater elevation contours generally imitate the basin topography, with groundwater gradients descending from the high plateau summits to the stream valleys.


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Another important characteristic of the hydrogeological component is the fact that the geology underlying the Project site area presents relatively low hydraulic conductivity values and limited fracturing, even in shallower areas; therefore, this geology does not bear significant groundwater volumes. Regarding groundwater quality, periodic monitorings of their characteristics have been performed during the last years, through collection of information of the last 7 years (2003 – 2009), which were generated using different procedures and methodologies. In general, points monitored in the Alto Jadibamba and Chailhuagón River basins and in the Toromacho and Alto Chirimayo ravine basins present similar characteristics. With regard to metal concentrations, ECA exceedances for Al, Fe, Pb, Mn and As are shown in the four basins. The Chailhuagón River basin presents ECA exceedance in the Hg concentrations as well. Likewise, coliform concentrations are also above the ECA in the basins under study. pH ranges are similar, presenting neutral to alkaline conditions, with pH ranges from 6.3 to 8.5.

4.2 Biological Environment

4.2.1 Flora and Vegetation

The biological baseline assessment area is composed of 5 sectors corresponding to the five area watersheds, occupying an area of approximately 29,490 ha. The following vegetal formations were identified: bush, bog, grassland, riparian vegetation, and agriculture. Likewise, 2 types of special floral composition cover were evaluated: lagoon and rocky outcrop shores. In the case of vegetal formations in the study area, grassland occupies the larger area (57.8 percent), followed by agriculture (26.9 percent) and bushes (6.8 percent). In the case of bogs, they occupy only 0.9 percent of the assessment area. In other contexts, bogs are more important due to their high biological and hydrological value, since they constitute habitats for several plant and animal (some endemic) species, and act as water flow regulators by retaining water during the wet season and releasing it during the dry season. In comparison with the other vegetal formations, the bogs in the area present a very low diversity of flora and are degraded due to overgrazing. On the other hand, a total of 460 vascular plant species and 60 bryophytes were registered. These species group together in 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 the Pteridophytes (5.0 percent); while only 1 Gymnosperm (Ephedra rupestris) was registered in the assessment area. The botanical families with greater number of species were Asteraceae (97 species) and Poaceae (70 species). Vegetal formations showing greater specific richness values were bushes and grasslands, while bogs showed the lowest specific richness. Among the flora species registered in the baseline study, 34 are considered under some national or international conservation category. From these species, 14 are under some endangered criterion in accordance with Supreme Decree No. 043-2006-AG (List of Endangered Flora in Peru). Among these species, 7 are considered as “Critically Endangered” (CR), 4 are in the “Vulnerable” (VU) category, and 3 species, in the “Nearly Endangered” (NE) category. According to the Convention on International Trade in Endangered Species (CITES) international criteria, 5 species are considered in Appendix II. In the International Union for Conservation of Nature (IUCN) red list, the Polylepis racemosa species is in the “Vulnerable” (VU) category and the Alnus acuminata and Distichia acicularis species are in the “Nearly Endangered” (NE) category. Likewise, 46 plant species were registered, which are considered as endemic for Peru according to the Red Book on Endemic Plants in Peru (León, B., et ál., 2006), from which 6 species are endemic for 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; from which 205 correspond to the avifauna group, distributed in 15 orders and 41 families. The greater number of bird species was present in the Passeriformes order, being Tyrannidae with 27 species and Trochilidae with 26 species the most representative families respectively. For the mammal group, a total


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of 13 species belonging to 5 taxonomical orders and 10 families was registered; moreover, 4 amphibian species and 3 reptile species were registered. From the vertebrate species registered in the biological baseline assessment area, 18 bird species are considered as high sensitivity (Stotz et ál., 1996), among which 7 are Passeriformes, 3 Psitacids, 2 Strigiformes, 2 Charadriiformes, 2 Apodiformes and 1 Piciforme. According to the National Institute of Natural Resources (INRENA, by its initials in Spanish) categorization, 13 avifauna species registered during the assessments presented some type of conservation status, being the Taphrolesbia griseiventris hummingbird important for presenting the highest conservation “Critically Endangered” (CR) category; 4 species are in the “Endangered” (EN) category, 5 species are in the “Vulnerable” (VU) category and 3 species, in the “Nearly Endangered” (NE) category. One mammal species and 1 amphibian species were registered in the “Vulnerable” (VU) category of the INRENA categorization, while none of the reptiles registered presents conservation status. Within the conservation categories of the International Union for Conservation of Nature (IUCN), there are eight bird species registered in the assessment area, three species considered in the EN category, three species are in the VU category and the remaining two species are included in the NE category. One amphibian species is in the CR category. Neither mammal nor reptile species is listed by the IUCN. The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) considers the Vultur gryphus Andean condor within Appendix I, while 51 bird species are protected at family and/or order level and are included in Appendix II. One mammal species, the Lycalopex culpaeus Andean fox, is included in the CITES Appendix II. Neither mammal nor reptile species is categorized by the CITES. It is necessary to indicate that the assessment area where these species were registered is much larger than the Project direct site area.

4.2.3 Aquatic Life

Evaluation stations in 6 lagoons and 11 ravines close to the future facilities were established in the biological baseline assessment area. The habitat quality estimated in accordance with the biological parameters determined that stations downstream the Chailhuagón lagoon have good quality water. On the other hand, very poor quality water was registered at one of the stations located in the Alto Chirimayo ravine, while the rest of ravines evaluated have poor quality water. Benthic macroinvertebrates turned out to be relatively abundant organisms in ravines, where a total of 59 morphospecies, distributed in 4 phyla, 7 classes, 14 orders and 38 families, were registered; while 9 species on average were registered in lagoons, reaching the highest values for the Azul and Perol lagoons. Fish were sampled in the 11 ravines evaluated, having registered their presence in 10 of them. Two fish species, the rainbow trout (Oncorhynchus mykiss) and the catfish (Astroblepus sp.), were registered in the assessment area. In total, 61 trouts and 291 catfishes were registered in all the ravines evaluated; these numbers are considered low, given the number of ravines evaluated. Ravines present in different sectors showed distinct abundances depending on their location, the ravines located in Chailhuagón and Toromacho showing greater abundance. It is worth mentioning that the evaluated ravines mainly belong to areas close to the catchment area; therefore, they generally have a low water quantity. In the evaluated lagoons, the rainbow trout (Oncorhynchus mykiss) was only registered in the Perol, Chailhuagón, and Huashwas lagoons, being the latter the one which registered greater abundance. It is necessary to point out that the trout is a species belonging to the salmonid group and native to North America, which was introduced in Peru and then planted in different Andean water bodies. It needs water streams to reproduce and it cannot do it naturally in lagoons; therefore, the registered individuals were planted in them.


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4.3 Human Interest Environments

4.3.1 Landscape

Landscape was analyzed from the visual approach (visual landscape), which in consideration corresponds to the aesthetics or perception approach and involves a description of the landscape components (physical, biological and anthropic elements), as well as the spatial interaction of these elements and the main dynamics having landscape dimension. The visual quality analysis, the fragility analysis, and the landscape’s visual absorption capacity were also conducted. For the visual landscape, seven landscape units were established: bogs, water bodies, high plateau grass/bushes, grasslands, rocky outcrops, woody areas and cultivation areas. Likewise, a landscape sectoring was carried out by applying the watershed concept, taking into account important physical aspects, such as the altitudinal and topographic trends related to local geomorphological processes. As a result, five sectors (Toromacho, Alto Jadibamba, Chugurmayo, Alto Chirimayo, and Chailhuagón) were obtained. The landscape visual quality analysis results showed two high visual quality areas: Toromacho and Alto Jadibamba, due to the singular features they present. Sectors showing a medium visual quality landscape, Alto Chirimayo and Chailhuagón, respond to the distinguished presence of water represented by lagoons. The Chugurmayo sector presented a low visual quality, due to the fact that they turn out to be common landscapes in the area and the region. According to the fragility analysis, three sectors (Toromacho, Alto Jadibamba, and Chugurmayo) present a “medium” fragility and consequently a medium visual absorption capacity, mainly due to the relief with moderate slope and low inclination in some areas, as well as to the presence of almost imperceptible human action. On the other hand, the Alto Chirimayo and Chailhuagón sectors present a visual fragility described as “little fragile” 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, which are: Minas Conga, Minas Conga I, Minas Conga II and Minas Conga III. The archaeological sectors have been established based on the MYSRL work planning (facility location) and the consequent request to conduct Archaeological Assessment Projects with Restricted Excavations with Delimitation Purposes in order 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 identify and delimit archaeological sites through restricted excavations, thus having a protection and preservation plan of the cultural heritage from the company and complying with the 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 the National Institute of Culture, from which the CIRAs corresponding to the Chailhuagón and Chirimayo sectors may be highlighted. The CIRA corresponding to the Minas Conga II archaeological sector is currently in process.

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.

From the area below the Totorococha lagoon to Maqui Maqui, the eastern boundary of the MYSRL operations.


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From Maqui Maqui to the MYSRL administrative offices at kilometer 24, this is the route through the MYSRL properties.

From kilometer 24, through the new Kunturwasi road, to Chilete.

From Chilete to Ciudad de Dios, at kilometer 683 of the North Pan-American Highway.


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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 Chailhuagón Pits

The Conga Project operation will involve the mining of approximately 504 Mt of ore and 581 Mt of low grade ore and waste, that is, a total of 1,085 Mt of material. The Perol pit (344 Mt of ore) will be developed in 4 phases and will extend to the final pit limit indicated in Figure 2, centered at the UTM coordinates 9,235,134 N and 791,633 E. Upon completing mining, this pit area will be roughly elliptical with a major axis of 1 950 m long oriented N45W, while the maximum pit depth will be at 3,432 m high. The Chailhuagón pit (UTM coordinates 9,231,762 N and 791,025 E), located south of the Perol pit, will be developed in two phases and will extend to the final pit limit indicated in Figure 2. In the final phase, the Chailhuagón pit (160 Mt of ore) will occupy an area of approximately 143 ha, with 1,800 m long in a north-south direction, while the maximum pit depth will be at 3,588 m high.

5.1.1.2 Perol and Chailhuagón Waste Dumps

Waste dumps, in which low grade ore is also stored, will be located in the vicinity of the respective pits (Figure 2). Disposal of 581 Mt of waste is estimated, both from the Perol and Chailhuagón pits. It is estimated that the Perol waste dump (UTM coordinates 9,236,966 N and 790,540 E) will have a final capacity of 480 Mt and will occupy an area of 289 ha. This dump will receive waste material from the Perol pit (407 Mt), bog material (6 Mt) and LoM material associated with the Perol pit (67 Mt). The Chailhuagón waste dump (UTM coordinates 9,233,299 N and 790,733 E) will have a capacity of 174 Mt and will occupy an area of 160 ha, being exclusively used for waste material from the Chailhuagón pit.

5.1.2 Processing Facilities

The ore to be processed will be moved by haulage trucks to the primary crusher, centered at the UTM coordinates 9,234,153 N and 791,526 E (Figure 2), in order to be subsequently moved by a conveyor belt of about 2.4 km to the concentrator plant (Figure 2). The processing capacity of the concentrator plant (UTM coordinates 9,233,643 N and 789,061 E) is of 92,000 tpd. Potable water and fresh water necessary for the processes will come from the upper reservoir. Processing facilities will meet the purpose of separating the gold-and-silver-bearing copper concentrate by flotation process. These processing facilities include mill, flotation, thickening, and filtering processes, as well as concentrate storage and transfer. The project currently considers the concentrate transport by trucks to a port on the coast, most likely Salaverry. Tailings will be produced by the concentrator plant and will be thickened at levels from 62 to 65 percent (solid mass/total mass) and placed on the tailings storage facility designed for this purpose, which will be located in the basins of the Toromacho ravine and the Alto Jadibamba River.

5.1.3 Tailings Storage Facility

The tailings storage facility (UTM coordinates 9,236,881 N and 788,159 E) will be located in the basins of the Toromacho ravine and the Alto Jadibamba River, as shown in Figure 2. It is estimated that by the end of mine operations, the tailings storage facility will occupy an area of 700 ha approximately. The associated infrastructure for this facility includes the main dam, the Toromacho dam, and the seepage collection system, which includes elements for both dams.


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Dams will continue to be built during the project operating stage. In the case of the main dam, it will be built in stages to reach in the highest point a final altitude of 3,796.5 m, requiring a backfill volume of about 4.3 mm3, while in the case of the Toromacho dam, the main embankment will be built in stages to reach a final altitude of 3,796.5 m, requiring a backfill volume of 2.8 mm3 approximately.

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), water management 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 the Yanacocha 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, and water distribution pipes. Additionally, it is planned the implementation of four reservoirs: lower, upper, Chailhuagón and Perol. From these ones, only the upper reservoir will be used as a source of water for the project, while the rest will be used to mitigate social and environmental impacts on different basins and habitats.

5.1.4.1 Access Roads

Fifteen (15) internal access roads (Figure 2) have been considered in the project area. In the case of haul roads, they will have a maximum width of 42 m to allow haulage truck traffic. All access roads will be constructed with a proper drainage control and sediment management structures. As it has been planned, the Conga Project development will include areas currently occupied by access roads that are used by local people in transit to and from different villages. In order to allow that traffic between these villages is maintained at the 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). This access road will be designed to transport personnel and as a transport route for supplies, reagents, and products. The main access road (Figure 3) has four segments: Conga-Maqui Maqui-Km 24-Chilete-Ciudad de Dios. The construction of this access involves the development of extensions to the existing road sections and construction of new sections from the project concentrator plant and Maqui Maqui. Some other changes in the road from the Yanacocha complex to Ciudad de Dios may also be required if the associated assessments recommend their need.

5.2 Labor Requirement The Conga Project construction stage is scheduled for a period of 42 months and will employ around 900 people in the early months, reaching up to 6,000 workers at its most intense time, both for the execution of skilled and unskilled tasks. Once the mine operations begin, it is estimated that the required labor will be around 1,660 people, including 1,174 employees and 486 contractors during the first 11 years of operation. The labor requirement in the Conga Project will vary throughout the lifetime of the mine, reaching a peak of 1,800 people in year 2. The Conga Project will have a local hiring policy that will give priority to local personnel complying with the requirements of available jobs in the mine, to be applied at all project stages.


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Section 6.0 - Possible Environmental and Social Impacts

The report focuses on the analysis of environmental and social impacts themselves, which provides the basis for developing the control and mitigation measures that the project will have to implement later (which are summarized in the following sections). This report section presents the semi-quantitative project impact analysis on environmental and social receivers (or components) within the Project Area of Influence (AI). This analysis was based on the proposed activities for each project stage and applying 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 a result of the planned project activities. We must stress that the impact assessment has considered the mitigation, control, and/or compensation measures designed for the project, which is why impacts are called "residual”. Section 7 of this Executive Summary presents the main environmental management measures to counteract the project adverse effects, while section 9 presents the main social management measures proposed to mitigate or compensate for adverse effects and, as appropriate, enhance the positive impacts.

6.1 Environmental Impacts Analysis Tables 1 and 2 present the results of the environmental impact assessment matrices for construction and operation stages, respectively. The environmental impacts in each assessed subcomponent are presented below:

6.1.1 Relief and Geomorphology

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

6.1.2 Soils

The construction activities that will have impacts on the soil subcomponent are the topsoil and earthwork removal. It is important to note that a large part of soil, which must be removed to make the project development possible, will be temporarily stored in topsoil stockpile, so that there is enough material to support the final remediation activities.

6.1.3 Air Quality

As a result of earthworks, transport, blasting, processing and ore extraction mainly, particulate material (dust) and gases that will disperse to areas near emission sources will be generated. These emissions will be mitigated through an adequate dust suppression system, both on access roads and strategic emission points.

6.1.4 Noise and Vibrations

As a result of different construction and operation activities, noises and vibrations with a range restricted to the vicinity of the project infrastructure direct site area will be generated. It is envisaged the implementation of a series of measures to counteract these effects as part of the project environmental management plan.


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6.1.5 Surface Water

As a result of the project site and the surface drainage system alteration, the project will have an impact on water bodies that are currently within its footprint limits, particularly in terms of ravines and lagoons. Likewise, the project has the potential to have an impact on the quality and quantity of flows from nearby ravines, while the impact on the water quality is associated with the sediment increase and acidity generation in certain project areas related to the Perol deposit. Taking this situation into consideration, mitigation measures will include the baseflow replacement in ravines impacted by the project, through an appropriate management of the four reservoirs and water treatment until they reach acceptable quality levels before any discharge.

6.1.6 Groundwater

For the same reasons as in the case of surface water, the project would represent a variation in the seepage levels and in the hydrogeological flow distortion due to (1) the infrastructure site (i.e. dams that intercept almost all the groundwater flows), (2) the project element development (i.e. depression cones of pits) or (3) the occurrence of poor quality flow seepage. Taking the foregoing into consideration, it is estimated that the project has the potential to generate impacts on the environment. However, the envisaged mitigation measures, including the release of compensation flows from reservoirs, the effective containment of poor quality seepages through implementation of appropriate engineering measures, water treatment, and proper surface water and groundwater management especially within the project boundaries, will allow an adequate environment protection.

6.1.7 Flora and Vegetation

The project will cause the loss of areas with a vegetation cover consisting of grassland, bog, bush and areas devoted to agriculture, among others. The most affected sectors will be Alto Jadibamba and Alto Chirimayo, where most facilities will be located. Loss of bog, due to the facility site, will be approximately 103 ha. It is important to indicate that the area bogs present degraded conditions for overgrazing. Specific measures have been proposed as part of the project to offset the temporary loss of these vegetal formations in the area.

6.1.8 Terrestrial Fauna

It is expected to generate impacts to fauna in both project stages. It should be noted that the 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 main construction activity that will have impacts on fauna is stripping, causing habitat loss in the footprint or its fragmentation and frightening fauna away. It is also estimated that operating activities will have effects on fauna 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 on terrestrial fauna. This plan also includes measures that will allow a better project management with regard to the area fauna, by means of studies that will allow better understanding of this subcomponent.

6.1.9 Aquatic Life

During the construction stage, the occurrence of impacts on aquatic life is anticipated, both in quality and availability of its habitat. This is mainly due to the presence of foreign matter that may be deposited as sediments in ravines and to the bog removal and transfer of water from lagoons. In the operation stage, they will occur mainly due to discharges from the project and their effects on nearby ravines in the evaluated sectors; nonetheless, a management plan has been provided, which includes the planned


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reservoir management in order to mitigate impacts by providing suitable environments for the aquatic life development in the area and discharging the necessary flows in potentially impacted ravines.

6.1.10 Landscape

The presence of infrastructure in the various basins, particularly in the open pit and waste dumps, will generate changes in the landscape. These changes will be visible from the five visual basins evaluated, being the tailings storage facility, pits and waste dumps the more visible facilities. However, as indicated by specific modeling, the project visibility is quite localized.

6.1.11 Pongo-Conga Corridor

The corridor construction and operation will generate changes in different components, mainly resulting from stripping and increased road traffic. It is worth mentioning that this assessment of impacts associated with this corridor has been completed in a qualitative manner; nevertheless, MYSRL will generate more information that allows confirming the results presented and managing as best as possible the environmental impact caused by the construction and operation of this access road. The main mitigation measures for these impacts are summed up in Section 7 of this Executive Summary.

6.2 Socio-economic Impacts This section provides a socio-economic impact analysis that the Conga Project could generate over its useful life. This study was performed for the pre-construction, construction, operation, and closure stages (Table 3). The analysis starts with the identification of predictable impacts, broken down into components of the socio-economic environment. The assessment of each of them is subsequently made from a series of criteria that take into account the impact characteristics and their receivers. Finally, the impact rating is carried out, which is the stage that summarizes their significance in two directions: positive and negative, and in low, medium, and high 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 project 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 the Community 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 in the local environment populations without conducting a management plan. For this purpose, a matrix analysis framework was used for each project stage (pre-construction, construction, operation, and closure) which, from the activities 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 positive and negative impacts arising from the service contracting and land purchase from the people of the hamlets located within the Project Site Area (hereinafter, CAEP1 , by its initials in Spanish). Likewise, negative impacts are identified as a result of the communication route disruption, the land use change, 1This geographic area comprises the following hamlets: Quengorío Bajo, Huasiyuc Jadibamba, Piedra Redonda Amaro, Chugurmayo, Namococha, El Porvenir de la Encañada, Lagunas de Combayo, Agua Blanca, Quengorío Alto and San Nicolás.


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the costs of adaptation and social integration of the former owner population and other socio-economic environment changes, resulting from the occupation of lands acquired for the project. To that effect, it is important there is a mitigation plan for these impacts through a management plan of land acquisition for the former owner population.

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 local procurement and contracting for construction works. The negative impacts would be generated due to immigration of labor in search for employment opportunities in the project and the risks by over-expectations of employment, social investment and unsubstantiated environmental impact perceptions. To that effect, the proposed mitigation actions are related to appropriate plans on communication and information to 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, development programs, among others, which will have influence on the project environment, mainly locally but also on larger areas. The negative impacts would arise from the labor and social investment over-expectations, environmental impact perceptions, migration impact, and conflicts generated 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 stage and the reservoir use by the population that would keep the benefits on the water regimes. On the other hand, the negative impacts would result from job cuts due to the cessation of operations and the economic activity decrease in the area of influence. Upon considering this, it is anticipated that the management plan measures 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 impact management measures and other, after their implementation. In the second case, the impacts found (residual impacts) show the effects arising after the implementation of the measures described in the Social Impact Management Plan. The impact assessment, both in the scenario without impact management measures and in that one with management measures, is carried out through the three basic dimension analysis: direction, intensity, and amplitude. Each dimension is approached by specific criteria tailored to the methodology for the environmental impact assessment proposed by Conesa (1997) and extended to better fit the nature of socio-economic impacts. The global rating of the Conga Project impacts results in a slight net positive impact, in a context in which any impact management measure is not executed. However, a management plan is required to improve the conditions of the negative impact receiving agents and enhance positive impacts. Therefore, after the implementation of impact management measures in the case of the project, results change to a high net positive impact. The impact assessment results grouped according to their nature are described below.


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6.2.2.1 Economic Component (Impacts on Income, Employment, Prices, Agricultural Production, Economic Activity and Property Rights)

The economic component is considered one of the most important of the five components analyzed. Its influence over the outcome of the project final net impact is the highest, both in scenarios with impact management measures and without them. The economic component impact assessment results in a high net positive impact, so in most cases, the impact management measures are intended to enhance these positive effects that fall on this component. The inclusion of these measures allows for significantly increasing the magnitude of the net impact. Therefore, in both scenarios, with or without mitigation measures, the net impact rating that is generated in this component is highly positive. The subcomponents that, after the implementation of impact management measures, undergo major changes are: income, employment, and agricultural production. The remaining three subcomponents: prices, economic activity and property rights, receive no significant influence of any impact management measure. In the first case, since it is not possible to intervene in the normal price evolution, the market is their key determinant. And, in the following cases, because the resulting impacts are positive they do not strictly require impact management measures.

6.2.2.2 Social Component (Impacts on Communication, Education, Social Networks, Culture and Safety)

The social component participation in the previously identified results of the Conga Project evaluation is medium. The social component has, as in the case of the economic component, a high degree of relative importance compared to the other components. The social component impact assessment, in a scenario with impact management measures in relation to one without management measures, shows a variation of more than 50 percent in the net impact magnitude of this component. Consequently, we pass from a scenario with a high net negative or cumulative impact to one with a moderate net negative impact. The amount of this result is mainly explained by the effects that the impact management measures exert, in order of importance, on the following subcomponents: road safety, road communications, culture, and social networks. The education subcomponent, which aggregate impact is positive, is not influenced by any impact management measure.

6.2.2.3 Psychosocial Component (Impacts on Perceptions and Expectations)

The psychosocial component is characterized by having a cluster of negative oriented impacts, all linked to over-expectations of the benefits that the project could bring and perceptions of possible negative environmental impacts. Therefore, its participation in the aggregate result of the Conga Project negative impacts is high and is significantly reduced after the implementation of impact management measures. The impact assessment of this component shows as a result a net negative impact of high magnitude. Moreover, even with the implementation of impact management measures, mainly consisting of specific communication programs, the rating of this result does not change significantly. It is worth mentioning that the high negative rating found represents the accumulation of minor negative impacts that, in some cases, are almost zero, so the result found is explained more by the number of impacts than by their magnitude. In terms of magnitude changes, the impact management measures achieved a reduction in the negative impacts of the expectation and perception subcomponents greater than 40 percent, being the reduction in the first subcomponent (80 percent) greater than the second one (40 percent).


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6.2.2.4 Environmental Social Component (Impacts on Water and Other Natural Products with Socio-economic Importance)

The social component derived from environment does not exert much influence on the final Conga Project effects. The impact assessment of this component shows that, in a scenario without impact management measures, its net impact is slightly positive and through the implementation of impact management measures, a net increase of 160 percent is achieved. Even so, its rating remains slightly positive. From the two subcomponents it has (natural products with socio-economic importance and water), only one shows a negative residual impact of minor significance. This is the subcomponent of natural products with socio-economic importance. The changes generated by the inclusion of impact management measures are: a 40 percent reduction in the magnitude of the negative impact on the natural product subcomponent with socio-economic importance and a 20 percent upgrading of the positive impact of the water subcomponent (due to the reservoir operation that represents a reduction in the uncertainty of this resource).

6.2.2.5 Political Component (Impact on Conflict Situations)

The political component has one of the lowest participations with respect to the final project results. Although this component has a net negative impact of minor magnitude, it is the only one of all the components that shows no substantial changes after the inclusion of impact management measures. Practically, the mitigation measure effect that falls on it is zero. This is due to the fact that its impacts are related to tensions or conflicts that may arise between the districts and provinces adjacent to the project for the participation in fees and royalties.


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Section 7.0 - Preventive, Control, and Mitigation Measures

The preventive, control and mitigation measures are provided in the Environmental Management Plan for the project. The Environmental Management Plan (EMP) is a dynamic tool to ensure that project activities have a good performance in the environmental field. After identifying the potential impacts of an activity, the EMP allows planning a program which main objective is to reduce the negative impacts and maximize benefits, using mitigation, monitoring and contingency measures to be implemented during the project activities. This section presents the actions and initiatives proposed by MYSRL for implementation through the EMP, so that Conga project activities are carried out in an environmentally responsible and sustainable manner in order to prevent, control and reduce the negative impacts of its activities. These measures are presented in the EIS main document with the appropriate level of detail, considering that are subject to change according to particular conditions or circumstances during their implementation and in accordance with a process of continuous improvement. The design of the EMP takes into consideration: To incorporate the environmental variable from the earliest stages of design of works, facilities and

processes. This is the reason for which at present it is difficult to separate the environmental component from the engineering design itself.

To implement the Environmental Protection, Health and Safety Policies of MYSRL.

To provide regular and ongoing training to workers regarding risk prevention and environmental protection.

To have appropriate plans to mitigate environmental impacts, prevention of risks and contingencies, the erosion and sediment control, waste management, and environmental monitoring.

Given that the design of the EMP should allow easy access to information, this document has been formulated in five interrelated plans, whose objectives are listed below: Prevention and Mitigation Program: its purpose is to prevent or reduce negative environmental impacts

identified from the EIA. It includes actions and recommendations to reduce or prevent the adverse effect of a work or activity on any element of the environment.

Environmental Monitoring Program: its purpose is to follow up over time and in a systematic way, use certain parameters that are indicators of the status of the environment in the Project area of influence

Contingency Plan: defines the specific actions to take in the unlikely event an emergency occurs, so as to minimize the damage to the environment, communities and facilities

Solid Waste Management Plan: aims to conduct a comprehensive waste handling to ensure proper management subject to the principles of reduction, prevention of environmental risks and public health protection, in accordance with current legislation

Conceptual Plan of Erosion and Sediment Control, which aims to provide guidelines to prevent unnecessary exposure of bare soil and to display a range of materials and techniques to reduce the accelerated loss of soil during the project development.

A brief description of the measures employed to adequately mitigate environmental impacts is given below and Table 4 presents a summary of mitigation measures for each subcomponent evaluated.


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7.1 Impact Mitigation Measures

7.1.1 Impact Mitigation – Geomorphology and Relief

These measures, both for the construction stage and operation, are listed below: The site preparation works will be integrated for the various facilities to reduce the number of areas to

be accessed.

Wherever possible, construction activities that involve removal of vegetation and soil will be scheduled in order that the work is carried out during the dry season so as to facilitate the implementation of erosion and impact sediment control structures.

The disturbed areas will be temporarily or permanently remediated through reshaping, leveling, and/or revegetation with natural and/or compatible vegetation.

Appropriate design criteria will be considered for slopes, based on the geotechnical characteristics of the area, so as to ensure stability of the infrastructure.

7.1.2 Impact Mitigation – Air Quality

The following measures are proposed to prevent and mitigate these impacts: The exhaust gas emissions of diesel engines, mainly carbon monoxide (CO) and nitrogen oxides (NOx),

will be controlled through a program of regular maintenance of vehicles and machinery.

The primary crusher will have a water spray system and will also have dust controls at the discharge on the transfer belt, such as sprinklers and capture hoods at transfer points.

The emissions of particulate matter will be controlled in the busiest routes inside the project, through tank trucks.

According to internal safety standards of the project, the speed of vehicles will be monitored.

7.1.3 Impact Mitigation – Noises and Vibration

The following measures will be implemented in order to prevent and mitigate impacts: During the construction and operation stages, a program of blasting activities will be implemented in

areas particularly sensitive due to proximity to populated areas, notifying in advance the populations concerned, in order to concentrate the disturbance in the shortest time possible.

Large explosives charges will be subdivided into smaller and sequential charges. Also, the depth of boreholes will seek the confinement of the explosive wave.

There will be regular technical maintenance of machinery to be used and the information from each piece of equipment will be reviewed.

During the blasting, the area around the pit will be cleared considering a radius of 500 m from the center of blast as a reference distance.

Since milling activities and related activities will be carried out within a closed environment, a reduction of noise emissions to the environment is expected; however, the results of monitoring of noise generated by these activities and those associated with the rest of the concentrator plant will determine the need to implement special measures for noise abatement.


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7.1.4 Impact Mitigation - Soils

The following measures are planned to prevent and mitigate these impacts: All project works will be planned in such a way as to reduce the areas to be intervened. Special

attention will be given to critical erosion areas that for some reason must be intervened.

Machinery and vehicles will travel only over authorized access ways avoiding compacting the soil in other sectors.

The Best Management Practices of the International Erosion Control Association (BMP-IECA) will be taken into consideration.

In addition to these measures, specific mitigation measures are presented for the main activity of soil protection in the ADI, which is the management of the organic soil that will be removed from the direct location of the project infrastructure. As construction activities and preparation of topsoil stockpile are carried out, temporary measures will

be implemented to control erosion,

As a permanent erosion control measure, revegetation of topsoil stockpile will be made to establish a permanent cover and reduce the erosion potential and particulate material emissions.

7.1.5 Impact Mitigation – Surface Water

The mitigation measures for project impacts on surface water have been divided into three groups that respond to major impacts on surface water derived from the project. These mitigation measures can be grouped into: Mitigation measures for modification of the drainage system and changes in water storage capacity.

Mitigation measures for changes in water quality.

Mitigation measures for changes in water quantity.

These mitigation measures have been aimed at restoring the environmental services provided by water bodies and bogs to the ecosystem related to water. The environmental services analyzed in this section that were the basis for design of the mitigation measures, are: Storage capacity and regulation of lentic water bodies provided by the Azul, Chica, Mala, Perol, and

Chailhuagón lagoons.

Sediment control services of hydromorphic vegetation in bogs.

Water flow regulation services of bogs.

On the other hand, it is understood that mitigating the impacts in terms of water quantity and quality from an environmental perspective, would in turn mitigate the social impacts derived.


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7.1.5.1 Mitigation Measures for Modification to Drainage System and Changes in Water Storage Capacity

According to management plans considered by the project, the objectives are as follows: To reduce the amount of contact water (water that requires specific management), by intercepting non-

contact surface water before entering into the area of influence or its mixing with contact water.

To reduce the generation of sediment at the sources by implementing intense BMP during construction and operation stages, and actively recovering the project area during the operation stage.

To collect and manage contact water by channeling runoff and drainage from project facilities to a treatment system or to project facilities that use water.

Water Diversion Structures The project site will generate the variation of natural drainage systems so special measures have been taken into account to prevent that contact waters (i.e., those which come in contact with the infrastructure) are mixed with natural waters. Reservoirs In view of the above described impacts, the location of the mine infrastructure will affect environmental services related to water resources in the project area. These environmental goods and services can be summarized as follows: Areas of effective catchment of rainfall: formed by the surfaces of the study area.

Flow storage and regulation by presence of lagoons.

Flow storage and regulation by the presence of hydromorphic vegetation, especially in the area of bogs.

Taking into account these environmental services, as well as the socio-economic importance of water in the zone, one of the objectives in the design of the water storage system has been to efficiently mitigate potential negative impacts. To that end and in accordance with the project description, MYSRL will build reservoirs in order to offset the impacts mentioned above. These impoundments will allow water to accumulate during the wet season to guarantee its disposal during the dry season so as to ensure the supply of the resource for project demands and to replenish the estimated lost flows due to the compromise of environmental services above mentioned. From the distinctly hydrological point of view, the water impoundment in these reservoirs is an effective measure to offset the loss of lentic water bodies represented by the Perol, Mala, Azul, and Chica lagoons. The following is a summary table (Chart 3) with the estimated storage capacity of the original lagoons located in the project area and the estimated water storage capacity, considering the strategies of reservoir implementation. Also, this table shows the type of change that will be exerted on the volume of water as a result of the project execution.


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Chart 3

Changes in the Storage Capacity of Lentic Water Bodies as a result of the Project

Original Lagoon Capacity (m3)2 Reservoir Capacity (m3) Type of change Perol Lagoon 800,000 Perol 800,000 Transfer Chica Lagoon 100,0003 Upper 7,600,000 Transfer Azul Lagoon 400,000 Transfer Mala Lagoon 100,000 Chailhuagón 1,430,000 Transfer Chailhuagón Lagoon

1,200,000 Capacity increase

- - Lower 1,000,000 Runoff impoundment Total 2,600,000 - 10,830,000 -

Notes: 2 These values are estimates. The storage capacity may be somewhat less than that, due to fluctuations resulting from the variability in rainfall and projected discharges. 3 It should be noted that for this comparison a volume of 100,000 m3 was considered for Mala and Chica lagoons, which is a very conservative estimate. While it is true that the Upper Reservoir will be the main source of water for mining operations, by the end of the useful life of project this storage capacity will be available in the drainage networks for more convenient use according to future needs in the area. The storage capacity of the Chica and Azul lagoons will be compensated and exceeded as a result of the location of said reservoir. As to the storage capacity of the Perol lagoon, this will be compensated with the same storage capacity in the Perol reservoir, so it is expected this environmental service will be maintained. The strategy to compensate for the loss of storage capacity of Mala lagoon will be part of the compensation scheme for increasing the storage capacity of the Chailhuagón lagoon. The total storage capacity of the original Mala and Chailhuagón lagoons (1.3 million m3) is lower than that of the Chailhuagón reservoir (1.43 million m3), so it is considered that the compensation is adequate. Finally, the Lower Reservoir will be the transformation of the Jadibamba River into a lentic water body with the consequent creation of storage capacity in the system. This new storage capacity will be about 1,000,000 m3.

7.1.5.2 Mitigation Measures for Changes in the Surface Water Quality

To prevent the alteration of surface water quality there are a number of measures specially designed as part of the project description. These measures are particularly aimed at: Construction of treatment infrastructure according to requirements.

Treatment of flows to control sediment content.

A summary of these measures is given below for each of the basins involved. Sediment Management Plan for Basins of the Alto Jadibamba River and Toromacho Ravine It is expected that sediment sources in the area will mainly be the Perol waste dump, erosion of the beach of the tailings storage facility and the topsoil stockpiles. All sediments will be retained in the tailings storage facility or be stored in the main tailings dam or the Toromacho dam. Sediment Management Plan for the Basin of Alto Chirimayo Ravine The need for sediment control facilities in this basin is mainly due to the location of the haul road, the topsoil stockpile, and the Chailhuagón waste dump, among others. For the Perol bog and the Perol pit,


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sediment control will not be necessary in this basin because surface water will be collected and pumped to the tailings storage facility. Sediment Management Plan in the Chailhuagón River Basin In the Chailhuagón river basin, sediment control will be required for the Chailhuagón pit, topsoil stockpile and for any non-contact water that may report to the Chailhuagón River. This facility will be modified over the life of mine, when the Chailhuagón pit is expanded. The characteristics of this facility are detailed in Chapter 4 of the EIS. Acid water treatment plant According to studies performed and as described in the section dealing with the operational stage, the characteristics of water in the tailings storage facility (supernatant pool), which consists of a mixture of contact water with material from the Perol waste dump and from the tailings storage itself, will not allow an environmentally safe discharge of these waters, so the Conga project includes the construction and operation of an acid water treatment plant. Mitigation Measures for Changes to Water Quantity Because of the project location and operation, there will be changes associated with the variation in the amount of water. Listed below are the main attributes of the compensation schemes of each of the reservoirs proposed. Upper reservoir: This reservoir will be located at the upper part of the Alto Jadibamba River basin and is planned to provide: community water to the drainage of Toromacho ravine basin, fresh water to processing facilities and potable water for the mine and plant. This reservoir will have a storage capacity of 7.6 mm3. Lower reservoir: This reservoir will have a storage capacity of 1.0 mm3. The water from this storage will not be used in the mining process, but will allow mitigating potential impacts on baseflows of the basin and for social development. Perol reservoir: The Perol reservoir will have a total capacity of 800,000 m3, equivalent to the lagoon water volume. The water from this storage will not be used in the mining process, but will allow mitigating potential impacts on baseflows of the basin and for social development. Chailhuagón reservoir: this work will increase the lagoon capacity from approximately 1.2 mm3 it presently has to 1.43 mm3. Water from this reservoir will not be used in the mining process, but will be exclusively used to mitigate potential impacts on baseflows of the basin and to support social development. Regarding the flows that will be discharged from each reservoir to mitigate the potential impacts due to variation in the amount of water, they have been established according to the reduction of baseflows in the different basins of the sphere of influence during the dry season and have been estimated using the HFAM model, which was calibrated with the monitoring results and validated using the hydrogeological model MODFLOW. Flows to be discharged in order to achieve adequate mitigation are: Alto Jadibamba River Basin: 33.1 L/s

Toromacho Ravine Basin: 1 L/s

Alto Chirimayo Ravine Basin: 7.3 L/s

Chailhuagón River Basin: 9.7 L/s

The water balance of the project, completed using the GOLDSIM model, indicates that it is feasible to discharge these flows through proper management of reservoirs as proposed by the project.


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7.1.6 Impacts Mitigation - Groundwater

7.1.6.1 Mitigation Measures for Changes to Groundwater Flows

In regard to the effects on groundwater flows, the project includes compensatory measures comprising the operation of the four reservoirs. It should be indicated that the hydrogeological resource in the study area is quite limited because it is essentially reduced to flows through the alluvial material in quite shallow layers outcropping in the vicinity of the project. Considering this, the strategy for mitigating the impacts on this subcomponent is presented as part of the management scheme for impacts on surface water.

7.1.6.2 Mitigation Measures for Changes in the Groundwater Quality

Similar to the aforementioned for the case of mitigation measures for impact on groundwater flows, the project has been conceived so that a proper management of surface water reduces the possibility of impacts on the groundwater quality. The existence of a contact waters management circuit as designed prevents mixing with surface water from involved basins, and also reduces the possibility of seepages that affect the quality of the hydrogeological resource. This circuit was presented in the previous section concerning the measures for mitigation of impacts on surface water. Regarding PAG contact waters that could affect water quality, the facilities for their management, including treatment, will be designed to reduce the risk of seepages needing treatment into groundwater. In general, the concept of PAG contact water management includes its control in a "closed system", in hydrological and hydrogeological terms, to reduce the risk that these contact waters reach groundwater resources beyond the limits of the project. Considering this requirement, project flows with these characteristics will be directed to the tailings storage facility. In the case of the tailings storage facility, the following characteristics allow estimating an appropriate control of the seepages: The main dam and Toromacho dam will have a central clay core on bedrock with injection treatment.

The tailings will be placed on a layer of soil with a hydraulic conductivity of 1 x 10-6 cm/s or less, which will also have a drainage system that will inhibit the hydraulic pressure of the tailings.

A seepage collection system for each of the dams involved. While the main dam and the Toromacho dam were designed including features to facilitate seepage control, the probability that they exist is not zero, so the project includes the implementation of a seepage control system for both the main dam and the Toromacho dam.

For the main dam, a seepage management dam has been planned associated with the seepage collection pond, which will collect these flows to be pumped to storage tanks later, while for Toromacho dam there will be a water collection system below the dam, which will have a structure to intercept seepage for further recirculation through a battery of pumps. In the particular case of the Perol waste dump, underdrain piping will be installed before placing waste to capture seepages and channel it through a pipeline to the tailings storage facility, specifically to the supernatant pool.


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Furthermore, due to the characteristics of the material found in the northeast of this facility, the following measure options have been proposed: Seepage collector wells installed in the northeast reach of the Perol waste dump.

Lining of the karstic area.

A minor change in the final contours of the proposed footprint for the Perol waste dump.

Alternative drainage configurations that divert seepages going to the east of the Perol waste dump.

With regard to water management, underdrain piping will be installed for the Chailhuagón waste dump to capture seepages and discharge them to the Chirimayo sediment pond. However, considering the geochemical characteristics of this dump, it is not expected that seepages from it will compromise the quality of the hydrogeological component. Likewise, it is not expected that the volume of water removed from the Chailhuagón pit may show chemical characteristics that pose a risk for the aforementioned subcomponent.

7.1.7 Impacts Mitigation – Flora and Vegetation

The measures envisaged reducing impacts on flora and vegetation are detailed below. Construction activities will be planned in such a way as to reduce the areas to be intervened.

The areas affected by the location of infrastructure will be revegetated in the best possible manner after their reclamation subsequent to reshaping works.

The existing MYSRL nurseries will be used, which are currently in operation as part of its facilities at Maqui Maqui. These nurseries will be used for the propagation of native species. Among the species to propagate will be considered those protected species that may be affected during construction activities and that will be used later during remediation and closure works.

With regard to bogs, due to the location of infrastructure approximately 103 ha of this vegetation type will be lost; therefore, the execution of a specific plan has been considered and is presented below.

The compensation for environmental services generated by bogs has been discussed in previous sections (i.e. compensation of water storage volumes), and compensation strategies for ecosystem goods and services are presented in the section on mitigation measures for impacts on fauna.

Bogs that are not lost as a result of the placement of infrastructure within the project area will be preserved and studies will be carried out to determine the best alternatives for their reclamation.

These studies will serve to implement a suitable vegetal cover for the closure stage of the tailings storage facility. According to the description of the project, the tailings disposal area will be a wetland for the closure stage. Research works will provide the information necessary to establish the type and optimal distribution of vegetal cover for the closure stage.

7.1.7.1 Management Plan for Species in Conservation Status

The management program includes: Collection of botanical seeds and vegetative parts

Propagation tests

Transplant of seedlings


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Among the objectives of the propagation and subsequent planting of trees in both genera, there are: To generate environmentally derived goods and services for the ecosystem: wildlife refuge,

thermoregulation, pollination, among others.

To increase landscape quality.

7.1.7.2 Bog Management Plan

In order to compensate for the loss of bogs, it has been considered to previously establish the environmental services generated by this form of vegetation, so that special management strategies may be designed for each of them. The environmental services of bogs considered in the study area are: Water regulation and sediment sump (biogeochemical functions)

Generation of fauna habitat

Visual quality

Food source for livestock

Environmental services related to water resources were already treated as part of the mitigation of impacts on surface water, so project-derived impacts have appropriate compensation measures. This section discusses the environmental management of bogs with a focus on the last three environmental services. The loss of bogs in the area will be offset by establishing a wetland in the location of the tailings storage facility at the closure stage. Reclaimed tailings are susceptible to the creation of wetlands due to the physical properties of tailings and hydrology of containment structures. The construction of wetlands, given their economic feasibility and ability to reduce the environmental cost of tailings facility storages are a frequently used alternative in operations in the USA, Canada, and Australia. In addition, water from the upper impoundment will be used during the dry season whenever necessary, in order to maintain the saturation of the portion of wetlands in the reclaimed storage facility. As to the compensation for environmental services linked to food sources for the introduced livestock, the project includes specific social management plans involving the startup of programs related to the following: Studies of load capacity in places additional to those made in the baseline studies

Animal sanitation studies in the area of social influence of the project

Studies and programs for the cultivation of improved pastures

Genetic improvement programs for local livestock breeds

Animal nutrition programs

Selection of the most suitable livestock by zones in the area of social influence based on specific load capacity studies.

The connotations associated with environmental services of habitat offer for fauna and aesthetic or visual quality are discussed in the following sections of the Environmental Management Plan (mitigation measures for impacts on fauna and landscape).


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7.1.7.3 Revegetation Plan

The revegetation plan considers all efforts to be carried out to give the ground vegetal cover conditions similar to the original ones, to the extent possible. This plan is aimed both at final closure activities and the reclamation of temporarily disturbed areas.

7.1.8 Impacts Mitigation – Terrestrial Fauna

The main general measures to mitigate these impacts are described below: The projected works will be planned in such a way as to reduce as far as possible, the area to be

intervened.

In areas near the lagoons and bogs mainly (most active zones of wild fauna), an inspection will be conducted before starting construction activities.

The entry of outsiders into working areas will be restricted, not to increase the human presence in little disturbed habitats.

This plan includes specific management measures for major ecosystems in the area and for particular cases of species with priority conservation status. Management measures are divided into three specific management plans. Conservation Plan for Aquatic Habitats and Bogs

Management Plan for the Eleutherodactylus Simonsii Frog

Management and investigation plan for the Cajamarca Oldfield Mouse (Thomasomys praetor)

7.1.8.1 Conservation Plan for Aquatic Habitats and Bogs

The conservation plan for aquatic habitats includes the creation of water reservoirs and the generation of a wetland ecosystem in the tailings disposal area at the closure stage.

7.1.8.2 Management Plan for the Eleutherodactylus Simonsii Frog

In order to reduce adverse effects on the frog and increase knowledge of it, it is proposed as a mitigation measure to make a pilot survey before the construction stage in order to define the best strategy for managing the species in the area. The pilot survey will identify the current status of the species in the area due to the expected high temporal variability in their populations.

7.1.8.3 Management and Investigation Plan of the Cajamarca Oldfield Mouse (Thomasomys praetor)

During the stripping of vegetal cover, care will be taken not to cause damage to individuals who might be in the area. As part of this plan, MYSRL will conduct investigations of this rodent population both within and outside the project area of influence. The main objective of this research is to contribute to knowledge of the current state of their population in areas near the project inside and outside its area of influence as well as the characteristics of their habitat and the natural history of the species.

7.1.9 Impacts Mitigation – Aquatic Life

Regarding mitigation measures related to aquatic life, they are extended to mitigation of water quality due to their close relationship.


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7.1.10 Impacts Mitigation - Landscape

The following general measures will be considered: In parallel with mining operations and where feasible, revegetation of exposed areas will be carried out

using, as far as possible, local species so that the landscape is affected as little as possible.

The basic concept around the improvement of the landscape during the closure stage will be, as far as possible, to remediate remaining project structures so that they are as compatible as possible with the environment. It should be remarked that not all project infrastructure will show this visual improvement significantly, because remaining structures such as the pit represent a substantial change of visual basin that cannot be remedied but can be mitigated.

7.1.11 Impacts Mitigation – Road Traffic

The aim of this management plan is to manage the potential impacts of transport of equipment, machinery, supplies and personnel during construction and operation of the project. This program will be effective along all routes on which MYSRL or its contractors have vehicles in circulation. Measures that will be implemented to mitigate or reduce impacts are as follows: The schedule of vehicular traffic will be limited to the daytime period as far as possible,

There will be an annual routine maintenance and periodic maintenance of roads.

Traffic signs will be strengthened in the area

The speed of vehicles will be controlled in accordance with national regulations or those set by MYSRL.

In addition, subcontractor companies participating both in the construction and operation stages shall demonstrate that they have and practice health and safety measures appropriate for transport activities.

7.1.11.1 Impacts Mitigation – Archaeological Remains

No impacts have been identified on this subcomponent, only risks, so an impact mitigation plan for this subcomponent is not included. The EIS also presents the Environmental Monitoring Program designed for the Conga project, which will be performed during, before and after the construction stage and during project operation and closure. Monitoring to be completed after the implementation of the closure plan, that is, post-closure monitoring is presented in the Conceptual Closure Plan. The purpose of the Environmental Monitoring Program is to monitor those parameters that have been identified as potentially affected by activities associated with the project. The results of this monitoring program will be used as a mechanism for measuring the effectiveness of the Environmental Management Plan. The implementation of the plan will follow a scheme of adaptive management, so that it will be evaluated periodically and modifications will be applied to increase its effectiveness, also considering changes in related legislation, the categories of conservation of flora and fauna, and the environmental sensitivity of the parameters. The implementation of the Environmental Monitoring Program will also provide the information necessary to form the basis of environmental data for project development activities. This database will be an essential tool for the organization and systematization of information obtained during the implementation of the environmental monitoring plan and the preparation of reports to be submitted to the authorities and other instances.


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It is important to note that the monitoring plan designed for the Conga project does not end at the data collection. While, the systematic generation of good quality data over time is one of the most important points of monitoring, data analysis and the generation of information allows a good capacity of early response and valuable support in project environmental management. For the foregoing reasons, this plan will be closely linked to an efficient interpretation center that allows generating the database, systematizing them and providing information oriented to subsequent decision making. Since this plan was developed prior to the construction and the start of the project, it may require updates. These future updates could include changes in the location of monitoring stations, the recorded parameters, frequencies, protocols and data management. The objectives of the Environmental Monitoring Program are: To determine the real effects, at spatial and temporal scales, caused by the activities of the project

through measurement of the environmental relevant parameters outlined below.

To check the effectiveness of prevention, mitigation and control measures proposed.

To verify compliance with applicable environmental standards and commitments assumed by the company.

To early detect any unforeseen and unwanted effects, resulting from execution of the project, so that it is possible to control it by defining and adopting appropriate and timely measures or actions.

The monitoring program considers the following environmental components: Geotechnics (related to the geomorphology and relief subcomponent)

Meteorology

Air quality

Noises and vibrations

Surface water

Groundwater

Revegetation and vegetal species management programs

Terrestrial fauna

Aquatic life

The monitoring program includes the following scope for each of these components: Aspects: provide subcomponent information relative to its importance for the project.

Parameters: they correspond to the physical, chemical, biological, or cultural variables that are measured and recorded to characterize the status and progress of environmental subcomponents.

Environmental regulation or criterion: indicating the limits and standards established in the corresponding regulations, which will be used to compare the results of monitoring. It also specifies environmental practice guidelines contained in technical standards, environmental guides, or protocols. In the absence of national regulations, criteria may be applied that make reference to the project baseline studies or international criteria that are deemed necessary.

Monitoring stations: corresponding to the measurement and control sites selected for each environmental subcomponent.

Methodology: refers to the measurement methodology, data collection and information analysis, in each case.


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Frequency: refers to the frequency with which measurements are made, samples are collected, and/or each parameter is analyzed.

Information management and reporting: refers to the methodology and the frequency with which the reports will be prepared.

Table 5 describes each of the evaluated environmental components and details the parameters, methodology, location of monitoring points and sampling frequency. Finally, it is important to note that the mitigation of potential impacts of elements representing particular manifestations of environmental subcomponents, such as that of the hydrogeological resource through springs, or the characteristics of infrastructure elements that facilitate the exploitation of natural resources, such as water channels or systems, assist in the restoration of affected flows or volumes by using the water stored in reservoirs. Therefore, since the effectiveness of the measures proposed in these cases is associated with the verification of mitigation provided through the surface and groundwater components, and since monitoring of the characteristics of the springs and channels outside the area of influence can make up a social requirement, the specific monitoring of these elements may be included within the Participatory Environmental and Social Monitoring Plan (PESMP) or other particular monitoring effort agreed to with the authorities and population, such as the one completed by the Irrigation Channel Monitoring Commission of Cajamarca (COMOCA for its acronym in Spanish), for example.

7.2 Solid Waste Management Plan The Solid Waste Management Plan (SWMP) has been prepared in accordance with stipulations in the Solid and Hazardous Waste Management Plan (SHWMP) already established for the installation of MYSRL, updated through 2007. The SWMP establishes guidelines for optimal management of system components, from the generation of waste to its proper final disposal, passing through the stages of storage, collection, and transportation of the Conga project. Also, the SWMP was developed considering the requirements of environmental and social responsibility that highlight MYSRL and the current environmental legislation. The main objective of the SWMP is to establish guidelines for the effective control, management and disposal of solid waste generated during the construction and operation stages of the Conga project, preventing potential impacts to the environment and health, as well as to the safety of workers and surrounding villages. The SWMP has specific application on MYSRL operations for the entire scope of the Conga project where solid waste generation is identified. It also includes the internal transport and the final disposal of solid waste similar to urban and inert waste. Any management activity involving solid waste (non-hazardous) has not been planned outside the boundaries of the project. The management of hazardous solid waste requires special attention, for which we will use the services of a specialist company providing solid waste services (EPS-RS), duly registered with the General Directorate of Environmental Health (DIGESA). For managing non-hazardous inert waste, a specific management has been planned according to the type of waste, oriented to its trading or proper final disposal. Currently, MYSRL is characterizing the solid waste generated on site, for which it uses containers that have been distributed throughout MYSRL property and will be used for temporary storage of solid waste generated by the Conga project. According to the estimated number of workers for the construction stage (6,000 persons), and considering an average value of waste generated per worker (per-capita generation), the annual amount of non-hazardous solid waste will be 7,056 tons produced during the entire construction stage. Also, for the operation stage it is estimated that 19,216 tons of non-hazardous solid waste will be generated. Once the operation of the project is started, field work will be conducted to adjust the parameters established in a preliminary way in this SWMP.


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The central storage area is the one in which waste generated at different points in the project primary storage (where segregation occurs) will be collected. Large volume containers will be installed in this central warehouse, in which waste will be temporarily stored, until its final disposal or trading. An internal record of solid waste management will be carried in accordance with the provisions of the Regulations of the General Law of Solid Waste (Supreme Decree N º 057-2004-PCM). Records and reports will be reviewed by the managers, to improve, if necessary, the effectiveness of the SWMP. The transport of solid waste outside the area of operations will be conducted through an EPS-RS or EC-RS duly registered with DIGESA. In the case of recyclable waste to be traded, transport may be performed by an EC-RS, also registered in DIGESA, which has the proper authorization. To remove hazardous solid waste, a company specialized in its collection and transport will be hired, said contractor will be an EPS-RS registered in DIGESA. All non-hazardous solid waste generated within the project will be transferred from the central storage area to the Yanacocha Central Waste Station, located at kilometer 39 (by Serpentine # 1 of La Quinua at MYSRL facilities). For final disposal of recyclable and saleable waste an EC-RS licensed by DIGESA will be hired. Hazardous waste generated during the construction and operation stages, after temporary storage, will be disposed of by an EPS-RS and oils and lubricants will be sent to the lime plant for reuse or otherwise returned to the supplier for recycling or sent to a recycling facility through a trading company authorized to handle recyclable materials (EC-RS).

7.3 Emergency and Contingency Response Plan This plan has been developed in order to respond appropriately in the event of accidents and/or states of emergency that may affect the workers, process, facilities, or the environment surrounding of the Conga project. Planning for the prevention, identification, and response to contingencies, aims at preserving the integrity of the workers and the environment, and is within the framework of the corporate policy of MYSRL. It also provides appropriate preparation for a timely and effective response to emergencies that may arise as a result of earthquakes, possible fires, chemical spills, landslides, medical emergencies, and/or motor vehicle accidents, among others. Thus, a comprehensive plan is required that includes teams of skilled and motivated workers in charge of specific functions in prevention management to ensure an effective response to emergencies. Because this plan was developed prior to construction and the start of the project, it may require updates prior to commencement of operations and, if needed, during operations. These future updates could include specific responsibilities, protocols, and management of contacts information based on conditions at the time of commencement of operations.


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Section 8.0 - Social Baseline Summary

8.1 General Study Area The General Study Area (GSA) of the Conga Project is composed of the districts of La Encañada, in the province of Cajamarca, and Huasmín and Sorochuco, in the province of Celendín, department of Cajamarca (Figure 5). This area is defined as the potential indirect effect receiving area of the project development.

8.1.1 Demography

The department of Cajamarca is the fourth most populous nationwide, with 1,387,809 inhabitants (5.1 percent of the total population) (Chart 4). To that effect, it is remarkable to note that the intercensal population growth rate 1993-2007 is 2.3 percent on average per year, mainly due to the increased urban component.

Chart 4 Population, Surface and Density

Geographic Area Population Surface (km2) Density (inh./km2) Department of Cajamarca 1 387 809 33 317.5 41.7 Province of Cajamarca 316 152 2 979.8 106.1 Province of Celendín 88 508 2 641.6 33.5 District of La Encañada 23 076 635.1 36.3 District of Huasmín 13 282 437.5 30.4 District of Sorochuco 9 826 170.0 57.8 Source: INEI. 2007 National Population and Housing Census At the district level, a reflection of this pattern is seen, where except for La Encañada, the GSA districts were characterized as predominantly rural in 1993 (about 95 percent of their population), and they have had a population decrease by 2007, with a slightly larger urban proportion. The population pyramid of the department of Cajamarca presents a structure of traditional features, concentrated in the lower age groups. This is explained by some persistent high fertility and mortality rates typical of the Peruvian Mountains. This traditional population pyramid structure is more evident at the district level.

8.1.2 Characteristics of Household Members

The percentage of male household heads ranges between 73 percent and 79 percent, and the upper range is more prevalent at the district level. Most household heads in the GSA have completed elementary studies. Except for the province of Cajamarca (40 percent), the percentage of household heads with complete elementary education always exceeds 50 percent in other geographic levels. Most household heads in all the GSA areas are above 45 years old. Regarding the origin in each one of the studied areas, most residents have lived in the study area over the past five years. Migrants have arrived mostly in the province of Cajamarca, from Lima or the other provinces.

8.1.3 Housing Characteristics

The predominant construction material on the house walls is adobe or mud in all geographic levels studied: the department of Cajamarca (76.7 percent), provinces of Cajamarca (65.9 percent) and


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Celendín (94.5 percent), districts of La Encañada (96 percent), Huasmín (96.5 percent), and Sorochuco (97.4 percent). Regarding the floor construction material, over 95 percent of houses in the districts of La Encañada, Sorochuco and Huasmín have dirt floors, while the department of Cajamarca and the provinces of Cajamarca and Celendín have 74.2 percent, 58.3 percent, and 87.9 percent dirt floors. Unlike the wall and floor construction material, the roof material varies geographically. In the department of Cajamarca, most roofs are made with corrugated metal sheets, cement fiber, or similar (54 percent). In the provinces of Cajamarca and Celendín, most homes are built of tile (47.7 percent and 56 percent, respectively). At district level, most roofs in La Encañada are built of corrugated metal sheets (46.3 percent), while in Huasmín and Sorochuco, roofs are primarily built of tiles (56.4 percent and 82.3 percent, respectively).

8.1.4 Basic Services

Most houses within the department of Cajamarca and in the provinces of Cajamarca and Celendín have potable water supply. At the district level, the majority of houses get water through a public network inside the house (potable water): La Encañada, 25.2 percent; Huasmín, 43.4 percent; Sorochuco, 20.3 percent.

Chart 5 Water Supply in Houses

Supply Department

of Cajamarca

Province of Cajamarca

Province of Celendín

District of La Encañada

District of Huasmín

District of Sorochuco

Public network inside the house (potable water)

36.7% 59.3% 41.7% 25.2% 43.4% 20.3%

Public network outside the house but inside the building (potable water)

18.8% 16.9% 14.1% 25.9% 8.6% 32.6%

Public use fountain (potable water)

2.4% 2.2% 3.8% 3.1% 5.0% 6.5%

Tank truck or similar

0.1% 0.1% 0.1% 0.0% 0.1% 0.0%

Well 15.8% 7.0% 28.5% 12.7% 34.7% 23.0%

River, irrigation channel, spring or similar

21.5% 9.8% 6.6% 27.6% 3.6% 9.9%

Neighbor 3.5% 3.8% 3.9% 5.2% 4.1% 7.5%

Other 1.3% 0.9% 1.3% 0.2% 0.3% 0.2% Total 100% 100% 100% 100% 100% 100% Source: INEI. 2007 National Population and Housing Census With regard to sanitation, it is found that in each area surveyed, the highest percentage of homes have latrines or pit latrine. This percentage is high at the district level where 64.2 percent (La Encañada), 70.3 percent (Huasmín), 71.5 percent (Sorochuco) of houses use latrines as a toilet.


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Most homes in the studied geographic levels with the exception of the province of Cajamarca (62.8 percent) do not have electric lighting from a public grid. At the district level, only 10 percent (La Encañada), 15.3 percent (Huasmín), and 33.4 percent (Sorochuco) have electric lighting from the public grid.

8.1.5 Education

17.1 percent of the population over 15 years old in the department of Cajamarca qualifies as illiterate (Chart 6). In the studied districts, the illiteracy rate is higher than the department average, being a 28.1 percent, 25.6 percent, and 27 percent of the population in the Encañada, Huasmín and Sorochuco, respectively, illiterate.

Chart 6 Illiteracy Rate

Geographic Area Illiteracy Department of Cajamarca 17.1% Province of Cajamarca 13.8% Province of Celendín 18.6% District of La Encañada 28.1% District of Huasmín 25.6% District of Sorochuco 27% Source: INEI. 2007 National Population and Housing Census In all the studied geographic levels, the grade repetition rate increases considerably in passing from first grade to second grade of elementary school, which is caused by the high school drop-out rate in the first year (most entrants to first year withdraw before the end of the academic year.) In the department of Cajamarca, an average 5.7 percent of the population being in some grade of elementary school and 7.3 percent of population being in a high school grade has the status of withdrawn. At district level, we observe that the average school drop-out rate at elementary level (10 percent), and at the secondary level (7.8 percent), exceeds the department average. According to the official information from the Ministry of Education (MINEDU), there are 7,047 schools and/or educational programs in the department of Cajamarca. Most schools and educational programs are located in rural areas, in the levels of initial education (2,143) and elementary school (3,343). At district level, La Encañada has more schools and educational programs (131), compared to its counterparts in Huasmín (87) and Sorochuco (41).

8.1.6 Health

The main disease in the population of the department of Cajamarca is the acute respiratory infection (ARI), which has been the cause of death of 12.8 percent of the population under study. At district level, it is also observed that respiratory diseases like influenza (flu) and pneumonia are the main causes of mortality in La Encañada (12.15 percent), Huasmín (24.25 percent), and Sorochuco (25 percent). The majority of medical care (59.1 percent) and treated persons (41.6 percent) in the department of Cajamarca has been performed in health posts. Likewise, the number of medical care and treated persons in hospitals represents the minority of cases; that is, only a small number of medical consultations is carried out in this type of establishment, and represents 20 percent of the total treated persons and 7.4 percent of total medical care. At district level, the participation of health posts as a recipient of medical care and treated persons increases, even coming to be the only type of facility providing health services. For the three districts


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under analysis, on average, 87 percent of the treated population and 90 percent of the medical care were performed in a health post. At department level, it is observed that Cajamarca has 3 hospitals, 37 health centers, and 271 health posts. Among the analyzed provinces, it is observed that they both have a hospital; however, the province of Cajamarca exceeds by 7 health centers and 23 health posts the province of Celendín. At district level, it was found that no district under analysis has a hospital, and only the La Encañada district has a health center. For the districts of Sorochuco and Huasmín, the only health facility available are health posts (Chart 7), this explains why this type of facilities supplies all the health demand existing in such districts.

Chart 7 Number of Health Facilities

Facility Department

of Cajamarca Province of Cajamarca

Province of Celendín

District of La Encañada

District of Huasmín

District of Sorochuco

Hospital 3 1 1 - - - Health Center

37 10 3 1 - -

Health Post

271 46 23 8 5 2

Source: Ministry of Health – General Office of Statistics and Information Technology. Updated as of December 31, 2008

8.1.7 Employment

78 percent of the GSA population is of working age (WAP), a group of which approximately half is performing an economic activity (busy EAP), while the rest is devoted to housework, mainly women, or to study, mainly young people. At the department level, the educational level of the busy EAP presents a significant proportion of higher education (around 40 percent) in urban areas, while in rural areas it is predominantly elementary level (62 percent) or without any level (14 percent). The same pattern can be observed at the district level, with a relatively lower performance of the higher education level in urban areas and a greater proportion of busy EAP (Chart 8) without any level in rural areas, which is due to the low area development level. Regarding the employment category, 48 percent of the busy EAP in the department of Cajamarca is independent worker, while 15 percent is unpaid family worker, and these features are typical of areas with large numbers of independent agricultural production family units. Because of this, these features are emphasized at the district level of the GSA due to their higher rural population proportion. Therefore, 57 percent is devoted to agricultural activities in the department of Cajamarca, while at the district level there is around 80 percent.


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Chart 8

Population Distribution according to Busy and Idle EAP and Non-EAP

Busy EAP Idle EAP Non-EAP Total WAP Absolute % Absolute % Absolute % Absolute %

Dpt. of Cajamarca 433 922 46.3 20 219 2.2 483 239 51.6 937 380 100 - Urban 163 328 49.7 8 682 2.6 156 666 47.7 328 676 100 - Rural 270 594 44.5 11 537 1.9 326 573 53.7 608 704 100 Province of Cajamarca

105 224 46.8 6 354 2.8 113 384 50.4 224 962 100

- Urban 65 667 50.9 3 447 2.7 59 839 46.4 128 953 100 - Rural 39 557 41.2 2 907 3.0 53 545 55.8 96 009 100 Province of Celendín

23 527 40.8 1 395 2.4 32 777 56.8 57 699 100

- Urban 7 112 45.2 448 2.8 8 178 52.0 15 738 100 - Rural 16 415 39.1 947 2.3 24 599 58.6 41 961 100 District of La Encañada

5 555 35.7 594 3.8 9 400 60.5 15 549 100

- Urban 341 37.9 73 8.1 485 53.9 899 100 - Rural 5 214 35.6 521 3.6 8 915 60.9 14 650 100 District of Huasmín 2 835 33.8 306 3.6 5 253 62.6 8 394 100 - Urban 73 43.5 6 3.6 89 53.0 168 100 - Rural 2 762 33.6 300 3.6 5 164 62.8 8 226 100 District of Sorochuco

2 760 41.7 114 1.7 3 737 56.5 6 611 100

- Urban 188 36.9 19 3.7 303 59.4 510 100 - Rural 2 572 42.2 95 1.6 3 434 56.3 6 101 100 Source: INEI. 2007 National Population and Housing Census

8.1.8 Economic Activities

The department of Cajamarca has one of the most dynamic growths nationwide in the last decade, with an average annual rate around 7 percent. In great part, this rate is attributed to the mining sector contribution, which accounts for about 22 percent of the GDP of Cajamarca. The department mining sector contributes a significant amount of foreign currency to national accounts, having reached more than US$1,600 million in 2006. On the other hand, the main economic activity in terms of labor use is agriculture, due to its intensive use of unskilled labor, although with little generation of added value added and usually meant for self-consumption. Another development source is tourism, for which it has Historic-Cultural Resources such as Cumbemayo, Otuzco Windows, Combayo, Inca Rescue Chamber, among others.

8.1.9 Perceptions

In general terms, the GSA leaders and local authorities assume that mining activity will cause significant negative impacts on water and soils, and consequently on agricultural activity. On the other hand, they mention that the mining project development brings harmful immigration effects, such as theft, prostitution and alcoholism. They also showed concern over the land sale and the effect on the economic sustainability of the former owner population.


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8.2 Specific Study Area The Specific Study Area (SSA) is comprised of the 32 hamlets in which the main effects of the Conga Project development are expected. They belong to the districts of La Encañada, Sorochuco and Huasmín that are described in general terms in the GSA.

8.2.1 Demography

In the SSA, the total population amounts to 7,350 inhabitants, mainly distributed in the hamlets of the district of Huasmín (53.9 percent), and followed by the hamlets of the district of Sorochuco (28.9 percent) and La Encañada (17.2 percent) (Chart 9). In a more pronounced manner than in the GSA, the SSA hamlets present a traditional population pyramid, with a remarkable concentration in the lower age groups due to high birth and mortality rates. Likewise, most people from the SSA hamlets were born in the same district (88 percent), while a minority comes from other provinces or districts of Cajamarca (12 percent)

Chart 9 Hamlet Population, according to Study Areas

Geographic Area Absolute % of SSA % of the district Hamlets of the District of Huasmín 3 964 53.9% 29.8% Hamlets of the District of Sorochuco 2 122 28.9% 21.6% Hamlets of the District of La Encañada 1 264 17.2% 5.5% Total SSA hamlets 7 350 100% 15.9% Source: 2009 SSA Population and Housing Census, INEI

8.2.2 Characteristics of Household Members

88 percent of household heads are men (Chart 10), usually from 31 to 45 years old (36 percent) or more than 45 years (40 percent). Likewise, these ones are characterized by having elementary school level (69 percent) and no level (15 percent).

Chart 10 Distribution of Household Heads by Gender

Male Household Heads Female Household Heads

Geographic Area Absolute % Absolute %

Hamlets of the District of La Encañada 252 88.1% 34 11.9% Hamlets of the District of Huasmín 785 86.6% 121 13.4% Hamlets of the District of Sorochuco 454 87.6% 64 12.4% Total SSA hamlets 1491 87.2% 219 12.8% Source: 2009 SSA Population and Housing Census, INEI On the other hand, male household heads are in living together status (about 80 percent) or married status (around 20 percent), while the most female household heads are widows (about 70 percent). Most SSA households have one child (24 percent), two children (24 percent) or more than four children (20 percent).

8.2.3 Housing Characteristics

The construction materials of the SSA houses are predominantly characterized by having adobe or mud on the walls (94 percent), dirt on floors (98 percent) and corrugated sheets on roofs (50 percent).


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Regarding access to basic services, 10 percent has access to potable water compared to 50 percent who have access to public non-potable water system. 70 percent have access to latrines; 0 percent, to a public system in terms of sanitation; 20 percent, to electric power and 52 percent, to candles as a source of lighting (Chart 11).

Chart 11 Type of Water Supply in Houses

Hamlets of

the District of La Encañada

Hamlets of the District of Huasmín

Hamlets of the District of Sorochuco

Total SSA Hamlets

Public network inside the house (potable water)

0.4% 4.2% 0.0% 2.3%

Public network outside the house but inside building (potable water)

23.4% 0.8% 4.4% 5.7%

Public fountain/faucet (potable water) 3.5% 1.2% 2.5% 2.0%

Piped non-potable public network 44.1% 49.1% 56.6% 50.5%

Tank truck 0.4% 0.1% 0.2% 0.2%

Well water 3.5% 18.5% 7.9% 12.8%

Spring 19.2% 19.1% 20.7% 19.6%

River, irrigation channel 3.2% 1.9% 2.9% 2.4%

Neighbor or other 2.5% 5.1% 4.8% 4.6%

Total 100% 100% 100% 100%

Source: 2009 SSA Population and Housing Census, INEI

8.2.4 Education

From population over 15 years old in the SSA, the majority has only reached elementary education level (58.4 percent) and other large group does not have any level (22 percent). This last situation occurs most notably in the case of women, since they are involved to a greater proportion in household chores (Chart 12).


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Chart 12

Educational Level Reached by Population over 15 Years Old

Hamlets of the District of La Encañada



Total SSA Hamlets

Abs. % Abs. % Abs. % Abs. % No level 206 25.0% 491 22.0% 272 20.5% 969 22.1% Initial/Pre-school 0 0.0% 3 0.1% 0 0.0% 3 0.1% Elementary School 394 47.8% 1322 59.2% 842 63.5% 2558 58.4% High School 203 24.6% 368 16.5% 202 15.2% 773 17.6% University Higher Educ. 15 1.8% 15 0.7% 4 0.3% 34 0.8% Non-university Higher Ed. 6 0.7% 34 1.5% 6 0.5% 46 1.1% Total 824 100% 2233 100% 1326 100% 4383 100% Source: 2009 SSA Population and Housing Census, INEI In the case of population under 16 years old, 60 percent have completed elementary education level and other large group does not have any level of education (22 percent). These percentages similar to the previous age group show improvements in the population educational level in recent generations. 29 percent of the SSA population is illiterate, with a significant proportion of women in this category (about 77 percent). In the SSA, there are 5 schools in Initial or PRONOEI, 25 elementary schools, and 9 high schools. The construction materials are predominantly adobe or mud walls, cement floors and corrugated sheets on roofs. It is found that only 43 percent of the SSA schools have an adequate supply of desks, 35 percent with an adequate supply of blackboards and every school has at least one library with its own room.

8.2.5 Health

Regarding the SSA morbidity level, it is found that 42.3 percent of the total had at least one sick member in the last 15 days, from which 69 percent went to a health center (Chart 13).

Chart 13 Number of Sick People in the Last 15 Days

Households with Sick

People Households without Sick

People Geographic Area

Absolute % Absolute % Hamlets of the District of La Encañada 134 46.9% 152 53.2% Hamlets of the District of Huasmín 365 42.6% 492 57.4% Hamlets of the District of Sorochuco 204 39.4% 314 60.6% Total SSA Hamlets 703 42.3% 958 57.7% Source: INEI. Final Report on Educational Infrastructure. Conga Project 2009. 18.3 percent of all women are in childbearing age, from which almost all of them underwent prenatal controls. Likewise, 46.3 percent stated they use contraceptive methods. As for diseases of children under 5 years old, it is found that diseases of the acute respiratory infection (ARI) type affected 45 percent of that population in the SSA in the two weeks prior to the census, while 10 percent had acute diarrhea (10 percent). Moreover, 43 percent was in a condition of acute malnutrition and 38 percent with anemia.


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As to the number of health centers, it is observed that, in the total of SSA hamlets, there are 6 health posts, 5 of type I-1 (with technician) and 1 of type I-2 (with doctor). In these, the conservation status of medical equipment is mostly regular (50 percent) or good (38 percent).

8.2.6 Employment

In general terms, the economically active population (EAP) represents approximately 69 percent of the working age population (WAP); there is also a specialization of the population in performing agricultural activities in independent production households sharing work between men and women, where the former also have a second job and the latter are also involved in domestic work requirements, and have sacrificed in their educational level (Chart 14).

Chart 14 Population Distribution according to WAP, EAP, Non-EAP

Hamlets of the District of La

Encañada



Total SSA

Absolute % Absolute % Absolute % Absolute

%

Total Population 1 264 100%

3 956 100% 2 122 100% 7 342 100%

WAP 1 074 85% 2 862 72% 1 717 81% 5 653 77% Non-WAP 190 15% 1 094 28% 405 19% 1 689 23% WAP1 639 100

% 2 336 100% 1 355 100% 4 330 100%

- Busy EAP 447 70% 1 580 68% 973 72% 3 000 69% - Idle EAP 15 2% 24 1% 9 1% 48 1% - Non-EAP 177 28% 732 31% 373 28% 1 282 30% Notes 1 No answer rate: 9 percent (Employment and income survey) Source: 2009 SSA Population and Housing Census, INEI

8.2.7 Economic Activities

The SSA agricultural family units are characterized by jointly performing agricultural activities, largely being for self-consumption, along with livestock raising activities, for marketing of dairy by-products. In addition, the SSA agricultural units work mostly in small plots of about 1 ha per plot, where each family has 2 plots on average (Chart 15).


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Chart 15

Average Number and Size of Agricultural Units (AU)

Total AU % AU Average

Size

Average Number of Plots per

AU

Average Plot Area

Mini-farm (0 to 2 ha) 1 037 70% 0.9 1.6 0.6 Small family (2 to 5 ha) 280 19% 3.5 2.1 1.6 Medium family (5 to 10 ha) 84 6% 7.4 2.3 3.1 Medium (10 to 50 ha) 72 5% 22.3 2.5 8.9 Large (50 to 500 ha) 9 1% 155.9 2.2 70.2

To

tal

Total 1 482 100% 3.8 1.8 2.1 Mini-farm (0 to 2 ha) 146 72% 1.2 1.2 1.0 Small family (2 to 5 ha) 37 18% 3.8 1.7 2.2 Medium family (5 to 10 ha) 15 7% 7.0 2.8 2.5 Medium (10 to 50 ha) 5 2% 14.3 2.0 7.2 Large (50 to 500 ha) 0 0%

La

En

cañ

ada

Total 203 100% 2.4 1.4 1.7 Mini-farm (0 to 2 ha) 506 64% 0.9 1.8 0.5 Small family (2 to 5 ha) 157 20% 3.4 2.2 1.5 Medium family (5 to 10 ha) 60 8% 7.4 2.3 3.2 Medium (10 to 50 ha) 61 8% 22.8 2.5 9.0 Large (50 to 500 ha) 6 1% 108.9 2.3 46.7 H

uas

mín

Total 789 100% 4.4 2.0 2.2 Mini-farm (0 to 2 ha) 385 79% 0.9 1.5 0.6 Small family (2 to 5 ha) 86 18% 3.5 2.2 1.6 Medium family (5 to 10 ha) 9 2% 8.0 1.9 4.2 Medium (10 to 50 ha) 6 1% 24.3 2.8 8.6 Large (50 to 500 ha) 3 1% 250.0 2.0 125.0 S

oro

chu

co

Total 489 100% 3.3 1.6 2.0 Source: 2009 SSA Population and Housing Census, INEI Most AUs use their plots for season crops (83 percent), and to a lesser extent for natural pastures (11 percent) as the main use. The SSA plots mainly use irrigation methods of low efficiency, such as rainfall irrigation (83 percent) or gravity irrigation (12 percent). The SSA AUs consider that their main problems with regard to the agricultural production are the low production (89 percent), lack of water (61 percent) and low technology (60 percent). The SSA AUs that received technical assistance represent a fairly small number.

8.2.8 Perceptions

In relation to the perception of the SSA household heads regarding living conditions of their homes, the majority (61.6 percent) considered that conditions have not changed in the last twelve months. If we consider the perception by educational level, we can see that there is a tendency toward the lower the level of education that there is, the greater the perception is that the living condition level has deteriorated. Fifty-five percent of the population within the Conga Project SSA does not know about the project and only 42 percent claim to know it. Only 31 percent of people surveyed stated that they considered that mining activity brings benefits. According to educational level, it is observed that the higher the education level is, the greater the acceptance is that mining activity brings benefits.


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Ninety-four percent of the population considers that the mining activity may bring harm. When age is considered, it is found that the younger the population, the greater the perception is that mining activity brings harm. Among all those who believe that mining activity may bring harm, the main concerns are about possible damage to water (75 percent), damage to people (64 percent), damage to animals (62 percent), and damage to the environment (62 percent).

8.2.9 SSA Water Sources

The following basins were identified: Toromacho ravine, Alto Jadibamba River, Chugurmayo ravine, Alto Chirimayo ravine and Chailhuagón River, for which a participatory inventory of springs, potable water catchments, flow measuring points, seepage, ravines and lagoons was conducted.

8.3 Stakeholders For the Project GSA stakeholder analysis, positions, power level, and topic of interest of 194 stakeholders were processed, including, but not limited to: regional, province and local authorities, companies, educational institutions, health institutions, Church and NGOs. Stakeholders are defined as those persons, groups, neighborhoods and organizations that may affect or be affected by the implementation of the objectives of an organization, in this case, the Conga Project. The dominant position among all the Project GSA stakeholders was of moderate support (37 percent). However, the expressions of support for the project were the result of coordination for the project development. On the other hand, 33 percent of stakeholders showed a neutral position and 30 percent of stakeholders showed positions of moderate and radical opposition against the project. It is important to note that, out of the total of 194 stakeholders analyzed, 48 percent has a medium power of influence on population, and 14 percent has a high level of influence.

8.4 Area of Direct Influence Although the area of direct influence (ADI) for the socio-economic component is adequately represented by the characterization presented at the level of the specific study area (SSA), which includes the 32 hamlets described above, a characterization of this area is presented below. The ADI has a population of 2 403 inhabitants, representing 32.7 percent of the SSA population. At the district level, it is observed that 713 people belong to the district of Sorochuco, 420 to the district of La Encañada, and 1 270, to the district of Huasmín. Hamlets representing a significant portion of the ADI population are Chugurmayo with 392 people (16.3 percent), Santa Rosa de Huasmín with 378 people (15.7 percent), Agua Blanca with 321 people (13.4 percent), and Quengorío Bajo with 301 people (12.1 percent). In terms of education, 58.1 percent of the population over 15 years old has studied some elementary grade, while 19.5 percent has achieved a year of high school study. Additionally, only 16 people in the population over 15 years old in the ADI have achieved to study some year of higher education (1.2 percent). On the other hand, the men’s educational level is relatively better than the women educational level. There is also a women marginalization and gender inequality regarding educational attainment. The ADI educational offer consists of 12 schools, mostly of primary level, which receive a total of 752 students distributed evenly between men and women. Most schools receive a student/teacher ratio greater than what is recommended (25). Regarding employment, population over 14 years old, or working age population (WAP), from the ADI represents 69 percent of the total population. In addition, 70 percent of the WAP is within the


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economically active population (EAP). This low unemployment rate is explained due to the fact that in rural areas the economic activities are mainly conducted independently by households for agricultural production; therefore, it would not be a demand for labor as to raise expectations of finding a job. The ADI busy EAP receives an average income of 200 nuevos soles. Nevertheless, this amount is underestimated since 32 percent of the busy EAP had agricultural income not reported. Likewise, 24 percent of busy EAP has no income as they are working as unpaid family workers. Consequently, the population with stated income represents only 39 percent of the busy EAP. With regard to household expenditure in the ADI, it appears that the largest expense item belongs to food expenditures that represents about 64 percent of total expenditures amounting in absolute terms to 234 nuevos soles. On the other hand, the average expenditure on goods and services excluding food in the ADI is 128 nuevos soles per month. In order of priority, the item with higher spending (excluding food) is house maintenance amounting to 30 nuevos soles per month (13 percent), followed by the health and education expenditure of 21 and 19 nuevos soles per month (9 percent and 8.3 percent), respectively. Health conditions are low. Within the ADI area, it is observed that in 40.3 percent of houses there was at least one sick person in the last 15 days, which means 206 people in absolute terms. Among those who were sick in the reference period, 67.5 percent were treated in a health center (139 people). Regarding the type of health insurance most of them are affiliated with the Comprehensive Health Insurance (61.4 percent). Insurances used by a minority are the ESSALUD social insurance with 0.6 percent and other health insurances with 0.1 percent. The ADI population is mostly in poverty conditions (73.4 percent), measured by non-monetary poverty (at least one Unsatisfied Basic Need, or UBN) and 27.4 percent is in extreme poverty (more than one UBN). This shows the low levels of the area life quality in terms of access to education of children, household overcrowding, and access to potable water, among others. The ADI agricultural units (AU) are characterized by mainly performing both agricultural and livestock raising activities. The first activity is mainly for household self-consumption (tubers, legumes, cereals, etc.) while the second activity is carried out for marketing of cattle milk production. Therefore, the milk sale is the main cash income source of the AUs. Likewise, even a small percentage of the AUs is dedicated exclusively to livestock raising activity (7 percent). Sixty-seven percent of the ADI household heads perceives that living conditions of their homes have remained unchanged in the 12 months prior to the survey implementation. In addition, 17 percent of the population believes that its living condition has worsened and only 16 percent perceives that it has improved. There are similar results for the perception of living conditions in their community. Regarding the Conga Project, 50 percent of the ADI population indicated they know it. From this group, 62 percent disagrees with the project development. There is a positive relationship between those who agree and the following characteristics: younger age and higher education.


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Section 9.0 - Summary of the Community Relations Plan

The Community Relations Plan sets out MYSRL guidelines for an appropriate management of its relationship with the communities in the area of influence of the Conga Project. Therefore, it is intended to build a relationship based on mutual benefits, communication, transparency, respect, and mutual confidence. Consequently, the objective of the Community Relations Plan is to suitably manage the relationships among the population, the company, and the State, who are identified as strategic partners for local sustainable development. In particular, the objectives pursued by the Community Relations Plan are the following: To make the programs and projects carried out by the company feasible, which are in line with

concerted development plans, towards the sustainable development of the area of influence and the improvement of the quality of life of the population.

To contribute to a relationship of mutual respect and confidence among the company, the communities and the different stakeholders present in the area of influence of the project.

To prevent and mitigate negative socio-economic impacts generated by the Conga Project, as well as to boost the positive ones.

To socially legitimize the programs and projects in line with the Community Relations Plan by effectively incorporating the population of the area of influence, its authorities and organizations into the monitoring of such programs and projects.

To encourage the establishment of mechanisms that enable a good, timely, and appropriate communication between the population and the company, taking into account the different customs and the social context.

The strategies and actions carried out by the company in order to achieve the social development of its area of influence and which are explicitly set out in the Community Relations Plan, are supported by four main basic principles: sustainable development promotion, co-participation, shared responsibilities and dynamic and concerted planning. The description and justification of the strategies and guidelines that will guide the relationship of the company with the population of the area of influence of the Conga Project to achieve the specific objectives proposed, are in line with four plans aligned to each of such objectives: the Community Relations Plan, the Social Impact Management Plan, the Participatory Social and Environmental Monitoring Plan (PSEMP) and the Social Communication Plan (SCP).

9.1 Specific Community Relations Plan The Specific Community Relations Plan (CRP) sets out the courses of action of MYSRL with respect to the community of the area of influence of the Conga Project. In this sense, the plan identifies and describes the most important actions of social investment aimed at improving the quality of life of the population of the area of influence. Likewise, the plan is the result of a process of mutual agreements that is still in force and involves both the company and the population. Therefore, it serves as an instrument to generate synergies for the optimal implementation of the Social Impact Management Plan (SIMP), the SCP, and the PSEMP. In other words, the CRP is a support for the social sustainability in the Conga Project environment.


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The CRP is applied to the area of direct influence (ADI) and to the area of indirect influence (AII) of the Conga Project. In the ADI, the company works directly in eleven hamlets that make up such an area. In the AII, it works directly in twently-one hamlets and works indirectly, through district and provincial municipalities, in the rest of the area. The courses of action included in the CRP act as guiding principles for the management of projects, programs and/or policies that will be developed with the community. Likewise, they provide a clear idea of the nature of the projects and programs that are currently carried out and those that will be carried out in the future. Furthermore, in their description, the reasons by which their promotion is vitally important for the local development, the objectives pursued, and the strategies that will be implemented in order to achieve such objectives are set out. The courses and subcourses of action that will be encouraged by MYSRL, within the corporate social responsibility framework (CSR), to contribute to the sustainable development of the area of influence of the Conga Project have been designed taking into account the main problems found in the diagnosis of the local situation and act as a framework for action to define the type of actions that can be implemented in each hamlet. Depending on the content of the concerted development plans and on the agreements made with each hamlet, a set of projects will be implemented, so that social investment decisions are in line with the objectives of local governments and of the population, making the CRP socially legitimate and their benefits sustainable. The courses of action are described below.

9.1.1 Infrastructure and Basic Services for Development

Access to basic services is one of the necessary conditions for the comprehensive development of a community and the improvement of the welfare of families that are part of it. In that sense, this course of action is aimed, through the preparation of pre-investment and investment studies and agreements with competent authorities, at maintaining and restoring the road infrastructure of the towns of the rural ADI and AII, as well as encouraging electrification, increasing access to drinking water and sanitation services for resident families and providing them with an adequate irrigation infrastructure that optimizes the development of their agricultural activities.

9.1.2 Economic Development

Agricultural and forest activities in the rural ADI and AII of the Conga Project are the main income and work source for the families that live there. In this sense, it is very important to implement strategies that increase the efficiency and productivity of agricultural and forest activities. This course of action addresses these problems by means of two subcourses of action that deal with the development of agricultural and forest businesses, and of local suppliers. The first subcourse includes the provision of technical assistance, technological transference, and training to improve production, following a business approach. The next subcourse complements the first one by strengthening the producers business skills, since it boosts the development of local suppliers so that they do not only meet the requirements of the mine, as would happen in a paternalistic act, but to be able to meet the requirements of a more extensive and diversified group of customers.

9.1.3 Health and Nutrition

The health characteristics of the rural ADI and AII of the Conga Project show serious problems that emphasize the presence of diseases. In this sense, subcourses of action are focused on the reduction of chronic malnutrition, the promotion of a culture of prevention, the treatment of common diseases and the improvement of health services by entering into institutional agreements with the competent authorities. With this, it will be possible to improve the health conditions of the population of the rural ADI and AII.


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9.1.4 Education

Support to education, as well as to health, is crucial for the future development of the population of the rural ADI and AII. The resulting positive effects last for years, for this reason it is considered a long-term strategy. For adult population, a subcourse of action establishing action measures to motivate an illiterate group of people to get out of such condition, despite their age, and have enough help available to do it, is included. For children, two subcourses of action are proposed, which involve the improvement of educational services and the reduction of school dropout and grade repetition. These strategies will be executed by entering into institutional agreements according to the subject.

9.1.5 Institutional Strengthening

Social institutions are part of the community capital that carries out projects or activities aimed at the development of communities as a whole. The objective of this course of action is to ensure the development of this human capital within the organizations and stakeholders, in such a way that their performance is planned, sustainable, democratic, and effective in the achievement of their objectives. Following this criteria, three subcourses of action are proposed, the first one is aimed at improving the local management of district and provincial municipalities, due to the high level of distrust of the population with respect to their performance and their high level of influence on the community development; the second one is aimed at strengthening the existing local and provincial consensus spaces; and the third one is aimed at promoting active citizenship, in which people are aware of and responsible for their rights and duties as citizens committed to the development of their towns. These strategies will be implemented by entering into agreements with the municipalities within the project sphere in order to improve their local management, to prepare strategic development plans: Concerted Development Plan, Institutional Development Plan, and institutional agreements for strengthening citizenship with other stakeholders.

9.2 Social Impact Management Plan The Social Impact Management Plan (SIMP) describes the impact management measures that will be executed in order to mitigate negative impacts and strengthen positive impacts generated by the execution of the Conga Project, which have been identified in the Socio-economic Impact Analysis. For the preparation of the SIMP, the following were used as input elements: the analysis made in the identification, evaluation, and qualification of predictable and residual impacts of the project; the socio-economic and cultural characteristics of the population of the directly impacted area; and similar experiences of other mining companies, such as MYSRL and Newmont Corporation. The impact management measures are aimed at a specific target population. However, their benefits can extend beyond this group, since many of the problems that can be mitigated or strengthened are directly or indirectly associated with structural problems that need to be previously addressed in order to achieve a really beneficial result for the population of the directly impacted area of influence. That is why it is closely related to the CRP. The measures set out below can be modified when there is a change in the socio-economic conditions or circumstances of the area of influence affecting their implementation. In this sense, their execution will be guided by a continuous improvement process to ensure the achievement of their objectives.

9.2.1 Construction of the New North-South and East-West Corridors

The objective is to mitigate negative impacts that arise from disrupting local-use roads and pathways or the disarticulation of economic corridors during the construction and operation stages. For that purpose, two roads will be built: a north-south road and an east-west road. The first section of the first road would


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connect the Santa Rosa and Piedra Redonda hamlets, using an existing stretch. The road would continue to the Quengorío Bajo and Alto hamlets through a new alignment and then it would be connected to the San Nicolás hamlet. Finally, it would be connected to a road located outside the project property. In case of the east-to-west road, it would connect the Agua Blanca hamlet with the San Nicolás hamlet through a new alignment located inside the project property. Likewise, these sections will be implemented before or parallel to the road disruption mentioned so that temporary road disruptions do not occur.

9.2.2 Road Safety Plan

The objective of this plan is to avoid car accidents and traffic congestion. For that purpose, the following has been established: processes for obtaining driving licenses, parameters establishing when cargo is over-dimensioned, regulations for drivers dedicated to the transport of personnel, rights of way, hours restricted for heavy-duty vehicle traffic, maximum permissible measures, which vehicles have priority in the use of roads, technical inspection protocol, internal regulations for personnel transport, loss prevention measures, training programs for drivers, vehicles and equipment maintenance processes, and mainly, a corrective measure system for traffic violations. In general, the scope of the plan applies to every employee of MYSRL, as well as to its contractors.

9.2.3 Land Acquisition Social Support Program (LASSP)

The objective of the LASSP is to strengthen the socio-economic capacities of former land owners so that they can obtain benefits, after the land acquisition process, which last more than the life of the program. For that purpose, different strategies have been prepared according to the specific needs of the population. Within these strategies, conditioned activities and incentive programs will be implemented to ensure families they will have an active role in the objective fulfillment and for them to develop the necessary skills to increase their welfare in the long term. The LASSP is directed to all former land owners and parties related to the lands acquired for the Conga Project.

9.2.4 Code of Conduct for Workers, Contractors and/or Consultants

The purpose of the Code of Conduct is to establish behavioral patterns so that workers, contractors, and/or consultants can interact with the population of the area of influence in order to create a coexistence environment based on confidence, mutual respect, and respect to local culture and values. In this sense, the following rules will be established: (1) safety rules, (2) rules for interpersonal relationships, (3) traffic rules, (4) rules for community relations, and (5) rules for environmental relationships.

9.2.5 Culture and Local Customs Promotion Policy

The purpose of this policy is to promote the conservation and use of local customs of the area of influence in order to foster a stronger sense of local belonging that intensifies the search for development. This policy is complementary to the code of conduct for workers, contractors and consultants, since it mitigates culture shocks that would be generated by the arrival of people involved in the project with life styles different from that of the local people. This policy is implemented by promoting local activities that revaluate the historical, social and cultural resources of the communities of the area of influence. The promotion of local holidays, competitions that strengthen the sense of local belonging, etc. area among these activities.


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9.2.6 Local Contracting and Purchasing Policy

The Local Contracting and Purchasing Policy is intended to contribute to the business and economic development of the area of influence of the project. In this sense, priority is given to the contracting of local PYMES (Small and Medium Sized Businesses) that meet technical, business and safety requirements to perform the services required by MYSRL. The strategy guiding the Policy is set out in six key actions: contractor segmentation, specific training through ALAC (Asociación Los Andes Cajamarca), demand for companies’ success (to that effect, their labor, tax and contract compliance will be monitored and trained will be given at the work site, coaching), expectation management, alternative work programs and sustainable development, the compliance with contractual agreements with each company, and the implementation of a standardized process for the administration of job applications, complaints and claims. Categories, according to the total purchase amount, are established in the regulations with respect to purchasing preferences given to local suppliers over other suppliers. Each category indicates a maximum amount of difference in price that could be between a local and non-local company. That is, the proposal of a local company can be higher than a non-local company, up to the maximum amount of difference indicated by the category, and be accepted.

9.2.7 Local Employment and Training Plan (LETP)

The purpose of this plan is to contribute to the creation of job opportunities for the population of the area of influence according to the existing work demand in the Conga Project. The plan is developed in six stages: (1) collection and validation of the general population register of each hamlet in coordination with the local authorities of the ADI and AII, (2) preparation of a “prioritization list per hamlet” and setting up of criteria for job assignment, (3) recruitment and selection, (4) communication, (5) training according to the requirements of each project stage, and (6) hiring into the workplace.

9.2.8 Strengthening of Design Skills and Investment Project Management of Local Governments

The objective of this project is to improve the local management of district and provincial municipalities of the area of influence. To that effect, public entities will be provided with assistance and training, previous coordination with them according to a work plan and institutional agreements with municipalities. The following points will be prioritized: Transfer of knowledge on project planning techniques, preparation of participatory budgeting, budget management, Comprehensive Financial Management System (CFMS), National Public Investment System (NPIS), among others.

9.3 Social Communication Plan The Social Communication Plan (SCP) identifies and describes the main communication strategies that will be implemented to provide the population involved in the area of influence with an efficient and timely communication about the development of the project, the impact management measures and the social responsibility activities included in the Community Relations Plan. The SCP is aimed at fostering dialog, preventing conflicts and strengthening the community-company relationship. These strategies will be applied during the EIS approval stages, construction, operation, and closure of the project. The SCP was prepared based on a diagnosis that allowed identifying the main communication trends among the stakeholders involved in the project development (workers, contractors, and the population of the area of influence). The diagnosis results show the need to design strategies aimed at solving communication problems identified inside and outside the project. Consequently, the SCP is composed of the Internal Communication Plan and the External Communication Plan. The level and frequency of communication activities can vary according to the development of the project activities and the demands of the internal and external public. However, strategies are designed to meet the needs of each development stage of the project.


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9.3.1 Internal Communication Plan

The Internal Communication Plan presents strategies that will strengthen the communication channels between workers and contractors in each stage of the project. The application of these strategies will result in teamwork optimization, work environment strengthening, and reinforcement of the project values among workers.

9.3.2 External Communication Plan

The External Communication Plan presents the strategies that will strengthen the communication channels between workers and the population of the area of direct and indirect influence of the project, informing activities development in a clear and transparent way. These strategies include different activities that fit the context of urban and rural zones of the population involved. In the same way, it will foster dialog and participation of local stakeholders, strengthening confidence relations between the company and the population.

9.4 Participatory Social and Environmental Monitoring Plan The activities developed by MYSRL in the different stages of the Conga Project are in line with international social and environmental management parameters. Therefore, participation of the population in the development of the Conga Project is an extremely important process for MYSRL, since it allows working jointly with the population and other stakeholders involved, generating synergies, and preventing possible or potential conflicts. Likewise, it is a lever to build, generate, or strengthen confidence and credibility relations among the company, the community, and the State. For that reason, participatory monitoring is considered by the Conga Project as a process by which it is possible to build and strengthen relationships between the company and the population of the area of influence. In that coarse, the PSEMP will take advantage of the most important scenarios that will be built during the pre-construction, construction, operation and closure process of the Project, i.e., monitoring process of environmental parameters (in its participatory component), the application of social management plans, such as the Community Relations Plan, the Social Impact Management Plan and the Social Communication Plan; as well as the Citizen Participation Plan. In these scenarios, the PSEMP will try to generate synergies, confidence, and identity among the population of the area of influence based on forming, involving and transmitting information, listening, giving opinions, and being transparent with the population of the area of influence in what remains of the pre-construction stage and in the construction, operation and closure stages to follow.

9.4.1 Phases for the PSEMP Preparation and Implementation

In order to implement the PSEMP as an organized participatory and solid-foundation process, a sequence of steps or phases that should be followed is shown below.

9.4.1.1 Phase I: PSEMP Communication and Explanation Process to the Community and Local Authorities

The importance and need to perform a series of actions and activities in order to achieve the objectives of the PSEMP will be communicated to the population and other stakeholders of the zone in a meeting called by the company. This phase involves the presentation of the PSEMP process where the establishment of the Participatory Monitoring Committee should be agreed upon.


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9.4.1.2 Phase II: Participatory Monitoring Committee Establishment

The Participatory Monitoring Committee will lead the PSEMP process, in which eleven PMCs related to each hamlet of the ADI and one central PMC in charge of collecting and systematizing the field-collected information by the PMC of the hamlets will be established. The PMC is a technical-social group formed by the Community Monitor, the representative of the company and a representative of the local government of such hamlet, one or more representatives of the communities, provided that they are identified with the impact and mitigation process of the project and when necessary.

9.4.1.3 Phase III: Strategic Planning Workshop

Based on the Social Impact Management Plan, the Community Relations Plan, the Citizen Participation Plan and the Social Communication Plan established in the EIA, the PSEMP Planning Matrix of the Conga Project will be prepared. Such matrix will include the objectives, indicators, means of verification, assumptions, information collection frequency, and persons responsible for the social and environmental monitoring development and will be validated in a workshop with each of the eleven PMCs.

9.4.1.4 Phase IV: Design of Information Collection Tools and Periodic Reports

Each piece of information collected on a regular basis will require a type of tool for such purpose. Tools that facilitate this process, such as monitoring forms are developed so that the required information can be easily recorded. Likewise, the PMC with the advice of the consulting company of the PSEMP process will be in charge of preparing reports with the description of the variations of each indicator together with the relevant explanation.

9.4.1.5 Phase V: PSEMP Application and Management Training

In general, the people making up the PMC do not have specialized training about the issues to be monitored, but experience, roles and interests with respect to the issue to be monitored from the technical, environmental and social perspective. In this sense, the building of skills related to the PSEMP is aimed at encouraging informed participation based on the creation of a base knowledge in the ADI population. This knowledge covers issues related to the operating aspects in the social and technical field of the project. This is carried out in order to guarantee the quality and transparency of the process and to improve response actions that will be taken with respect to the results.

9.4.1.6 Phase VI: PSEMP Implementation

Since it is a continuous adjustment process, a pilot test to make the corresponding adjustments to the information collection forms, to the computer systems, or to the use of both will be conducted. It is applicable to the reports that will be mostly mechanized (graphics, tables, among others).


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Section 10.0 - Conceptual Closure Plan

This section includes a brief description of the Conceptual Closure Plan. Within the framework of the Mine Closure Regulations, MYSRL has prepared a conceptual closure plan for the Conga Project as part of the EIS. MYSRL considers that after closure activities are implemented, the site will remain in an active care condition (long-term maintenance). However, as it will be verified during the project execution and based on the feasibility studies carried out as a part of the closure plan, it is foreseen that most of the elements of the project will require the application of passive care measures in order to achieve the closure objectives.

10.1 Progressive Closure Under this scenario, closure of the Chailhuagón pit and its respective waste dump are proposed to be carried out in a preliminary and conceptual way during this stage, since according to the Conga Project mining plan, mining at the Chailhuagón pit will finish in approximately year 2027, before the end of the operations. Moreover, as mining and waste material disposal are carried out, progressive physical stabilization measures of the Perol pit and its respective waste dump are to be implemented. It is important to indicate that during the progressive closure stage and the development of mining operations, reclamation measures, which will be basically final closure measures for some of the Conga Project facilities, will be implemented. Therefore, the objectives and methods proposed for the final closure also cover the progressive closure of the project facilities. However, the facilities that will be part of the project progressive closure, as well as its respective feasibility reclamation measures, will be subsequently determined in the Mine Closure Plan that MYSRL will present a year after the approval of the Conga Project EIS.

10.2 Final Closure

10.2.1 Dismantling

Disassembly, removal, transport and disposal of dismantle elements of the Conga Project facilities are included under this scenario. Dismantling will be carried out in the following facilities: Concentrator Plant

Soil stockpile area

Ancillary facilities

10.2.2 Demolition, Salvage and Disposal

Demolition, salvage, and disposal will take into account the following activities: Concrete structures that ensure ground stability (slope) will remain in situ so as to fulfill such purpose.

Underground concrete structures, such as building foundations, will remain in situ but covered with soil and they will be subsequently revegetated.

10.2.3 Physical Stability

10.2.3.1 Perol Pit

For the Perol pit closure, progressive physical stabilization measures will be implemented. These measures are associated with the pit configuration maintenance presented in the geotechnical design evaluations, since such configuration was developed considering the final closure facility planning. Also,


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as part of the safety measures, a perimeter barrier will be constructed parallel to the final pit limit, which will ensure that in case of instabilities, they would be contained within the limit established by the barrier. This barrier will also help to control access of people and animals to the area.

10.2.3.2 Chailhuagón Pit

For the Chailhuagón pit closure, a physical stability analysis must be considered, taking into account a pseudo-static condition for a 500-year return period. Also, as part of the stability measures, a perimeter barrier will be constructed parallel to the final pit limit, which will ensure that in case of instabilities, they will be contained within the limit established by the barrier. This barrier will also help to control access of people and animals to the area.

10.2.3.3 Chailhuagón Waste Dump

The Chailhuagón waste dump has been designed taking into account closure conditions; therefore, the physical stability measures that will be implemented as part of the dump operation are considered applicable to the closure. It is worth mentioning that for the preparation of the Feasibility Closure Plan of the project, physical stability studies will be conducted for dump slopes, considering the final closure scenario.

10.2.3.4 Perol Waste Dump

The Perol waste dump has been designed taking into account closure conditions; therefore, the physical stability measures that will be implemented as part of the dump operation are considered applicable to the closure. It is worth mentioning that for the preparation of the Feasibility Closure Plan of the project, physical stability studies will be conducted for dump slopes, considering the final closure scenario.

10.2.3.5 Tailings Storage Facility

Among the general criteria that will be taken into account for the final closure of the tailings storage facility, remediation from the top of the facility will take place and closure towards the impoundment so as to allow drainage of water contained in the tailings. In addition, all remediated structures must comply with the minimum physical stability factors according to the MEM standards in order to be considered as final closure.

10.2.4 Chemical Stability

10.2.4.1 Perol Pit

Upon closure (SWS, 2009), the dewatering model of the Perol pit, with respect to the pit water quality assessment, forecasts poor water quality in the lagoon that will be formed in the Perol pit (low pH and high metal concentration). In order to reduce potential impacts on groundwater in the post-closure stage, pit dewatering is proposed up to an elevation of 3.775 m, in order to keep hydraulic sump. Water will be directly pumped to the treatment plant that will be located at the foot of the main dam. Likewise, in order to meet the chemical stability criteria, a wildlife potential exposition risk assessment in the pit is considered necessary for the final closure of the Perol pit.

10.2.4.2 Chailhuagón Pit

According to the hydrogeological studies, a lagoon is expected to be formed in the Chailhuagón pit upon closure. Geochemical tests and modelings conducted for the exposed pit walls indicated a good water quality in the lagoon (neutral pH). Therefore, no treatment would possible be necessary upon closure.


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10.2.4.3 Chailhuagón Waste Dump

The Chailhuagón waste dump will be covered after implementing the physical stability measures. Although water coming into contact with the facility is expected to be of good quality, the construction of a cover is necessary in order to reduce erosive effects on the dump and subsequent sediment generation.

10.2.4.4 Perol Waste Dump

Waste characterization from the Perol pit indicates that it will be acid and seepage waters will require treatment. This seepage water will be diverted to a recovery pond for closure. The water quality model developed for the tailings storage facility (Alto Jadibamba river basin) for the post-closure stage includes two scenarios, involving water from the Perol waste dump. Forecasts for both scenarios indicate that the water quality in the tailings storage facility will require treatment before it is discharged into the environment. Upon closure, the water discharged from the tailings storage facility will be treated in the treatment plant installed at the mine site in order to comply with the ECA. For the Chirimayo basin, it is anticipated that the water draining from the Perol bog will require a sediment control treatment, as well as a water quality control (for acidity) before it is discharged into the Alto Jadibamba river basin. Therefore, it will be pumped to the acidic water treatment plant.

10.2.5 Land Shape Restoration

At the end of the operations and as part of the final reclamation in situ, most of the access roads and corridors of the project will be reclaimed. Only the main access road from Cajamarca and a limited number of access roads will be kept. These access roads will be kept to enable future inspections, the monitoring and maintenance of remediated facilities, and also the access to the reclaimed zones. At the end of the mining and processing activities, some ancillary facilities will remain in use to support closure activities. However, once a facility or structure is not necessary anymore, it will be demolished and the associated area must be reclaimed. After the structures of a facility are removed, the land area will be ripped, leveled (in order to establish an effective drainage) and, as far as possible, the existing topography will be restored to how it was before mining activities, before revegetation activities begin.

10.2.6 Revegetation

The revegetation plan includes the recolonization of the areas used by the project. After their reclamation, through their physical and chemical stabilization and cover with topsoil, revegetation activities will be gradually carried out in some cases and for some components, while activities are being performed in other areas. Also, in the final closure stage, and in order to reclaim the lands according to the conditions previous to mining, revegetation will be reestablished in all disturbed areas, except on the roads that will remain operative during the post-closure period and the walls of the Chailhuagón and Perol pits.

10.2.7 Social Programs

The social programs to be implemented as part of the final closure will include the sustainability concept in their design. In this sense, all programs will have follow-up indicators and specific evaluation.

10.2.8 Maintenance and Monitoring

MYSRL will inspect the project area during and after implementing the final closure measures of the operations for a 5-year period or until the physical and chemical stability of the mining component that can generate negative impacts is demonstrated.


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10.3 Post-closure Conditions At the end of the project useful life, the areas where the main project infrastructure will be located will have the following characteristics: Relief, Geomorphology and Landscape Most project facilities will be regraded and revegetated as part of the closure activities. These activities will be focused on reclaiming, to the extent possible, the disturbed areas so that they are restored to a condition compatible with pre-mining conditions. Reclamation of the tailings storage facility, the Perol and Chailhuagón waste dumps, the concentrator plant area, access roads and corridors, and most ancillary facilities is considered. Air, Noise and Vibrations A very low-significant residual impact is expected to be generated on the air quality after final closure has been carried out. These impacts are associated with the operation of the water treatment plant and the temporary use of light vehicles for maintenance and monitoring purposes. Soils Soils stored in the topsoil stockpiles will be used for the reclamation of closed facilities to subsequently revegetate them. For the post-closure stage, the basal conditions of the topsoil are expected to be recovered. Hydrology Surface water diversion channels that are considered for the operation stage will remain during the closure stage although sediment retention structures will be remediated as part of the final closure of the project. Since diversion structures will remain during the closure period, the original drainage systems of the project area will not be returned to their baseline conditions. Generally in the basins, these alterations will result in a minimum change for the hydrological patterns of the basins, except for the catchment area, where the project facilities are located. As well as during the operations, the reservoirs (upper or lower Perol, Chailhuagón) will be able to maintain flows during the dry season. In addition, after the operation stage, the upper impoundment will not be necessary for the process water required at the concentrator plant, so it could be used to maintain the wetlands created in the tailings storage facility, after an agreement has been reached with the communities, and provide additional water flows during the dry season. Surface Water Certain volumes of surface water will require management measures during the post-closure stage, due to the acid generating potential. Mine waste characterization and the geochemical model of the pit lagoon (SWS, 2009) indicate that the pit walls and the waste material of the Chailhuagón dump will be neutral and will have a low metal dissolution potential. As stated in the Chailhuagón pit lagoon assessment study (SWS, 2009), the Chailhuagón pit will be filled with water and after 11 years, water could be discharged into the downstream drainage system. For the Alto Chirimayo ravine basin, the seeps of the reclaimed Chailhuagón waste dump and the haul roads will also have a water quality similar to the baseline conditions and they will drain directly into the river. Regarding the Perol pit, it will take more than 80 years to finish filling the pit and restrict groundwater entry into it. In order to manage acidic water, after about 55 years of filling, caring, and maintaining the pit, water will have to be treated. The seeps of the Perol waste dump and potentially those of the tailings storage facility will require a continuous management to ensure the water quality in the Toromacho ravine basins and the Alto Jadibamba River. Hydrogeology and Groundwater Upon cessation of mining operations, a combination of surface water and groundwater will begin to fill the Chailhuagón and Perol pits. Once the pit is filled, there will not be residual impacts on the Chailhuagón basin groundwater, since it is expected that the conditions of the pit water discharge into the surface water and groundwater are similar to the basal conditions (SWS, 2009). The Perol pit, located in the Alto


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Chirimayo ravine basin, will be filled with water, although it will take more than 80 years due to the slow groundwater recharge in the basin. As it was mentioned above, the water level in the pit will have to be kept at such a height that a hydrologic sump is generated so that the acidic water does not produce impacts on the surface water or groundwater. As it was previously stated, seeps from the Perol waste dump and from the tailings storage facility will require management measures during the post-closure stage. Terrestrial Vegetation, Flora, and Fauna Revegetation activities that will be carried out especially with native species will return, as far as possible, a condition compatible with basal conditions to the closed facilities. Likewise, the reclaimed facilities will provide suitable habitats for the development of the local terrestrial fauna. The total surface of the reservoirs and lagoons of the pits is 420 hectares. These facilities will offer a more extensive habitat for species such as water birds. Hydrobiology Mitigation measures to be applied during the operation and post-closure stages are related to compensation during the dry season, which will improve the fish habitat and may generate potential-use opportunities for fishing in the water reservoirs of the project. Wetlands The opportunities for the creation of wetlands will increase during the closure stage. The main opportunity is the tailings storage facility closure that will provide a zone with the necessary characteristics for the creation of a wetland, since tailings are easily maintained in a saturation condition due to their physical characteristics. The upper reservoir will provide water for the creation of wetlands. Other areas that can allow the creation of wetlands in the closure stage are the ones located between the Chailhuagón pit lagoon and the Chailhuagón reservoir, in the Chailhuagón river basin; and the area located above the haul road in the Alto Chirimayo ravine basin.

conga project eia executive summary

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