Corporate Responsibility & Community Engagement at the Tintaya Copper Mine (A)

Case Solution

V. Kasturi Rangan
Harvard Business School ()

The Tintaya copper mine, located in the highlands of Peru, has long been a source of intense conflict between members of the local community and mine operators. The mine, which was first owned and managed by the Peruvian state and later by BHP Billiton, sits on 2,300 hectares of land that has been expropriated by local subsistence farmers. To challenge this loss of land, mining-related environmental degradation and allegations of human rights abuses, a coalition of five indigenous communities forged an alliance with a group of national and international NGOs in 2000 to build and pursue their claim. against BHP Billiton directly with the Australian. Company headquarters. The result of this effort was the initiation of a unique corporate community negotiation process known as the Tintaya Dialogue Table. In December 2004, after three years of negotiations, BHP Billiton and the five municipalities signed an agreement to compensate families for the loss of land and livelihoods and to establish a local environmental monitoring team and a community development fund. . But as the company resolves a conflict, another group of local stakeholders emerges with new needs that the company may not be able to meet. The conflict with this new group culminated in a forcible takeover of the mine in May 2005, forcing BHP Billiton employees to cease operations, abandon the mine site and develop a new strategy to recover local support.

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