Foundations, trusts and funds in near mine closure and post-closure environments: a case from Bolivia

Authors: Pacheco, V Download Paper

DOI https://doi.org/10.36487/ACG_rep/1208_62_Pacheco

Cite As:
Pacheco, V 2012, 'Foundations, trusts and funds in near mine closure and post-closure environments: a case from Bolivia', in AB Fourie & M Tibbett (eds), Mine Closure 2012: Proceedings of the Seventh International Conference on Mine Closure, Australian Centre for Geomechanics, Perth, pp. 747-758, https://doi.org/10.36487/ACG_rep/1208_62_Pacheco



Abstract:
In the last three decades, an increasing number of mining and resources companies around the world have established community funds, trusts and foundations (FTFs) to comply with government legislation or as part of their social or philanthropic programmes. The growth of FTFs follows corporate social responsibility trends within the resources sector to improve the way in which economic benefits are distributed among stakeholders. Benefit sharing mechanisms such as FTFs offer strategic channels by which companies can mobilise resources to mine affected communities. FTFs vary in structure, approach and aims, with the more participatory models relying on community input into the decision making process and the implementation of community development projects (CSRM, 2009). The success or otherwise of FTFs is well documented in academic and industry circles. The degree of success of FTFs varies depending on factors such as company support and community approval. However, as most of the research occurs during the operational phase it does not seem to be appropriate to comment on their long-term success, except where they may already have failed in the short term. This approach does little to expand our understanding of FTF community empowerment and self-reliance in post closure environments. In other words, from the perspectives of community development and mine closure planning there is a case for documenting and evaluating FTFs operating at a time when company funds are no longer accessible and when management of the FTF requires considerable input from the community it was meant to serve. This paper provides baseline results from research undertaken on the Inti Raymi Foundation in Bolivia. It analyses the community engagement practices and the programs used by both the foundation and its parent company, Empresa Inti Raymi S.A. (EMIRSA) to facilitate the process of closure. The success or otherwise of FTFs is well documented in academic and industry circles (Banks, 2003; Yakovleva and Alabaster, 2004; CSRM, 2005; Esteves and Vanclay, 2009; Barclay, 2010). Recent studies by the World Bank, the International Institute for Environment and Development (IIED) and the World Business Council for Sustainable Development (WBCSD) carried out in the area of FTF success found that best practice for mining FTFs include: In response to this limitation, the Centre for Social Responsibility in Mining at the University of Queensland funded research to carry out an in-depth study of a mine site in Bolivia that is at the end of its operating life. The research, funded by an early career grant from the Sustainable Minerals Institute, took place in 2011 over a period of ten months and involved a research fellow and a research assistant who are both proficient in Spanish and have previous professional experience in South America. The research fellow specifically selected this mine site because it fulfilled the main criteria for the study’s methodology: the selected FTF must function when the parent company is either at the end of the operational phase (near mine closure) or the parent company is no longer influential over the FTF (post mine closure). The advantage of this methodology, from the perspectives of community development specialists and mine closure planners, is that the research was able to document and evaluate a foundation operating at a time when company funds were no longer substantial. Also at this particular juncture management of the foundation required considerable input from the community it was meant to serve which highlights the FTF self-sufficiency and the way it interacted with the affected community.

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