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Bill Carman

ID: 28149
Added: 2003-04-22 11:30
Modified: 2004-10-30 13:46
Refreshed: 2010-03-14 07:08

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Chapter 1 - Table 2,3,4,5,6
Prev Document(s) 18 of 18

From Chapter 1. Key Observations and Recommendations: A Synthesis of Case Studies

Table 2. Land acquisition.
Large-scale minesPrice range (per ha)/ average price (per ha)/ number of hectaresPrevious market price (per ha)Side paymentsSavings and investmentGeneral comments
Inti Raymi, Bolivia$300-$1000/ $368/ 5 746a$30Preferred employment for locals, including training; Constructed 135 houses at $11 000/house for dislocated villagersHigh percentage investedPrices paid depended on quality of land and availability of alternative sites; artisanal miners given areas
Yanacocha, Peru$37-$600/ $152/ 4 069$44 (1992)Rotating employment for land vendors50% invested payment (other lands, houses, taxi)Great variation in prices of similar quality land over time
Antamina, Peru$100-$1000/ $480/ 7 141$30$33 000 to 52 renters on mine siteCommunities 100%; renters 80%; landowners (not known)Negotiated common price all at once with prices only depending on quality of land
Escondida, ChileNegligible (unoccupied desert)Negligible
Candelaria, ChileNegligible (unoccupied desert)Negligible
Diavik, CanadaNegligibleVery lowRoyalties to aboriginal groups, Local hiring policy with first priority to affected groups Must negotiate impact and benefit agreements with aboriginal groups who own land
Northern Saskatchewan, CanadaNegligibleVery lowEmployment performance monitoring

Preferential local training and hiring policies

Procurement contracts to local business

New company development for Indian and community based business

 Must negotiate impact and benefit agreements with local residents prior to development
Almadén, SpainPreferred employment for localsMiners have right to agriculture activities on mine property
Medium-scale mines
Puquio Norte, BoliviaN/A / 7 200Very lowNoneNot relevantAll land bought from a foreigner; COMSUR allowed artisanal miners to stay with conditions
Fachinal, Chile
Sussex, Canada
a Inti Raymi also paid $22 222 per hectare for land adjacent to the local town site.
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Table 3. Employment.
Large-scale minesDirect employmentIndirect local mining employment (mine contractors and suppliers)% of direct and indirect mining posts filled by local residentsLocal non-mine employment generated by mineaTotal mine related employment as share of total employment
Inti Raymi71624665%2 50025% (60) *
Yanacocha 2693 88590%6 00014.4% of county (provincial)
Antamina (projected)1 250 (4 000 during construction)3 75080%4 0002.8% of department
Escondida2 0006 200>80%5 2009% of Region II
Candelaria86045086%1 0127% of Region III
Diavik (projected)411 >70%  
Northern Saskatchewan (1998)1 25493749%1 62027%
Almadén (average over last 50 years)1 3515090%
Medium-scale mines
Puquio Norte118Very small30% (approx) 10% (25% of manual labour)
Fachinal265250<30%900
Sussex345615>90%
* — The first figure includes Oruro; the bracketed figure is the 2 communities closest to the mine site (La Joya and Chuquiña)
a This is the number of jobs generated due to the expenditure of contractors and suppliers on local inputs and the employees of the mining company, mine contractors, and mine suppliers in local markets (i.e. the “multiplier effect”).
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Table 4. Salaries and wages.
Large-scale minesAverage monthly salary (non-management)Mine salaries relative to local salariesAverage monthly salary for employees of mine contractorsMine contractor salaries relative to local salaries

Annual monetary injection to local economy (mine employees and contractors)

Estimated multiplier

Inti Raymi (1997)$678450% higher$350.250% higher$9.3 million2.79
Yanacocha (1997)$1 155300%$700180%$21.7 million2.53
Antamina (projection)$1 000200%$29.8 million1.42
Escondida$1 800254%$279.6 million5.7
Candelaria$1 300233%$39 million1.76
Diavik (projection)$3 750Much lower$40 million
Northern Saskatchewan, Canada (1998)$3 700440% for$2 700330% for$64.7 million2.4
north; 674% northern Indian; 240% provincial averagenorth; 490% for northern Indian; 175% provincial average(wages and salaries only) 
Almadén, Spain $500125%$500125%$8.4 million 
(average over last 50 years in constant 1998$) 
Medium-scale mines
Puquio Norte (1998)$290Same- N/A
(probably
very low)
Fachinal$764157%$7.6 million1.76
Sussex$34 million
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Table 5. Infrastructure and local taxes.
Large-scale minesRoads and portsPowerHospitals, schools, and otherLocal taxes
Inti RaymiMinor roadsGenerating station for mine not suitable for rural areasHigh quality local schools in rural and urban areas; high quality rural health center10% of department budget (1998)
YanacochaBuilt and upgraded local roads; assisted in maintenance of road to coastNoneHigh quality school; rural water and sanitation projects $7 million per year
(1993-1997)a
AntaminaMajor upgrading of road to coast and Lima (in progress); secondary roads upgradedNoneTechnical and secondary schools (built by community with land payments)$16.6 million per year once in production
EscondidaPort of Coloso (only for company use); road to mine; local roads in port areaHigh voltage power lineInternational school; water tanks$2.2 million (1997)
CandelariaPort at Punta Padrones (only for company use), 22 kms of roadSports complex; created primary and secondary school
Diavik (projection)$1.2 million per year
Northern Saskatchewan, CanadaSignificant road expansion, including a connected networkHigh voltage power lines with local accessRecreational facilities; health care facilities; water and sewage1995 US $42.4 million
(1985-1996)
Almadén, SpainWorse than national standardsAt national standardsHigh school; university; hospitals; sports complex; much higher than national standardsNegligible
Medium-scale mines
Puquio NorteInsignificantElectricity for rural areasNoneNegligible (paid to Santa Cruz department)
FachinalRoad improvements (25 kms)
Sussex$6 million per year to provincial government
a This is the approximate regional contribution to regional taxes based on the legal percentage of taxes that are supposed to go to the regions, although it is not certain that they actually are redistributed.
b This amount only includes royalty payments. An unknown amount of corporate income tax would also be paid.
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Table 6. Social programs.
Large-scale minesFoundationHealthEducationTrainingOther
Inti RaymiYesSeveralSeveralMine; agriculture; business and community management; weaving; small business developmentSocial capital development
YanacochaYesSeveralLarge numberAgricultureForestation; food security program; social capital development
Antamina (planning stage)NoAgriculture; small business development
EscondidaYesCancer research; upgrade children’s hospital; out-patient hospiceSchool upgrading; scholarships; international schoolTechnical mine training; micro-enterprise devel­op­ment; labour market insertion; apprentice­ship program; quality training for local suppliers
CandelariaNoVarious small projectsFunds primary and second­ary school; fund­ing to techni­cal school; scholarshipsTechnical mine training, training in modern industrial practices, training for local suppliersFunds “Environmental Brigades” in local schools
DiavikNoSupport business developmentSocioeconomic monitoring agreement
Northern SaskatchewanNoSeveral community health drug and alcohol treatment; healing lodgesScholarships; awards; train­ing program; northern collegeMulti-party training program — $7 million from 1993-1998, 50% of funding from industry; skills training; work placementsRegional development programs by government and industry; com­munity effects environmental monitoring com­mittees; commu­nity economic development committees
AlmadénNoSpecific cares for mercury-related diseasesElementary school with national standardsArtisanal jobs
Medium-scale mines
Puquio NorteNoNoneImprovement of local schoolNone
FachinalNoTechnical mine training for locals
SussexNo
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