Plexus was commissioned to provide social safeguard support as part of a comprehensive technical, environmental and social due diligence process on behalf of a consortium of Equator Principle financial institutions planning to invest in a planned mine development project in Peru. The mining concession had just been acquired by a mid-sized foreign mining company, that was planning to take the project to development and production. The due diligence was carried out in 2011-2012. Plexus contributed key skills in the area of community relations and consultation, resettlement and social investment evaluation.
As part of this process Plexus reviewed existing project documentation, including the draft ESIA, the resettlement action plan and related social investment documentation. Plexus also carried out site visits to undertake interviews with project staff and contractors as well as with the affected communities.
The due diligence process covered key issues such as the adequacy of the project’s community relations, social performance and the project’s approach to resettlement and social investment as well as relations with the on-going artisanal mining activities in the immediate vicinity of the project. The objective was to verify the compliance of the project with the requirements of the IFC Performance Standards and the Equator Principles, to identify any potential gaps and to make recommendations for improvements in performance.
The project provided the client with a gap analysis and recommendations to ensure full compliance with the IFC Performance Standards and the Equator Principles. The project also provided site visit reports as well as a detailed social and environmental status report. As part of the project a number of workshops were held with the client, the project proponent and key contractors.
These provided an opportunity to raise awareness of key issues such as managing cumulative impacts, the need for more comprehensive stakeholder analysis and consultation, ensuring contractor compliance with the social safeguard requirements and the importance of addressing community concerns regarding water resource needs and impacts of the project. The process was instrumental in stimulating the project proponent to develop the required policies and procedures in these and related areas and also provided assurance to the client that a suitable process was being put in place to manage social risks and ensure compliance throughout the construction and subsequent production phase.
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