EXTRACTIVE INDUSTRIES & CONFLICT

PREVENTION: SOCIAL INTERVENTION MODEL FOR SOUTH AMERICA

Sandra Carrillo Hoyos

Pontificia Universidad Católica del Perú, Communications Department

EXTRACTIVE POTENTIAL IN THE REGION

1° copper

3° molybdenum

7° silver

9° nickel

11° coal

3° silver

3° copper

3° tin

3° zinc

4° lead

4° molybdenum

6° gold

3° iron

5° tin

7° nickel

12° oil

4° tin

6° silver

8° lead

11° oil

CHILE BRAZIL PERU COLOMBIABOLIVIA VENEZUELA

The performance of

extractive industries

has allowed these

countries to become

the top producers in the world

SOCIO-ENVIRONMENTAL UNVIABILITY

Community of Caimanes against Los Pelambres Company Vélez and Landázuri Municipalities against coal mining

Chile, Coquimbo Colombia, Santander

Perú, Arequipa

Cajamarca Province against Conga Project – Newmont Mining

Bolivia

Indigenous groups claiming against North Energy Company

Brazil, Pará

Mistrust

National and

Subnational government

Extractive company

Community and civil society groups

TENSIONS BETWEEN STAKEHOLDERS

Uncertainty

Mistrust

National and

Subnational government

Extractive company

Community and civil society groups

TENSIONS BETWEEN STAKEHOLDERS

Uncertainty

Asymmetries

Mistrust

National and

Subnational government

Extractive company

Community and civil society groups

TENSIONS BETWEEN STAKEHOLDERS

Uncertainty

Asymmetries

SUSTAINABILITY DRIVERS OF CONFLICT

• Low credibility on

environmental

regulation efficacy

• Lack of participatory

mechanisms and

communication

efforts

• Ineffective actions to

achieve social license

to operate

• Low capacity to

address social

conflicts

• Dependency on exporting raw

materials, low economic

diversification

• Distrust of revenue distribution

Dissatisfaction

with the low

impact on local

development

Social

mobilization

against

extractive

activities

Concerns about

environmental

impact on

resources

necessary for

subsistenceIneffective

communication

Economic

EnvironmentalSocial

BUSINESS CHALLENGE TO PREVENT SOCIO-ENVIROMENTAL CONFLICTS

Reactive response

Preventive strategy

Chile

Perú

HidroÑuble Project in San Fabian community

Tía María Project – Southern Company in Islay Province

BUSINESS CHALLENGE TO PREVENT SOCIO-ENVIROMENTAL CONFLICTS

Reactive response

Preventive strategy

Improving the way of doing business in the

extractive industry

How to start?

BUILDING INTERNAL SKILLS TO PROMOTE

STAKEHOLDER DIALOGUE

Internal alignmentand response capacities

Stakeholder engagement

Communication strategy to

address information gaps

Direction board

Human

resourcesOperations Logistics

Corporate

affairsSales

Community

relations

Personnel Local community State Clients Suppliers

Building trust trough a coherent message

SOCIAL INTERVENTION MODEL PROPOSAL

Dialogue and participation mechanismsTrusting information through the extractive value chain

Strengthening of

local capacitiesGovernance and

accountability

Strategic partnershipsPublic, private and civil

society

Monitoring and participation efforts

LOCAL DEVELOPMENT

PLANNING AND MANAGEMENTBuild a common long-term vision

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CONCLUSION

The extractive industry in South America has shown significant positive

impacts on development and macro-economic stability.

The increasing resistance to the industry is outlined in principal

sustainability challenges at three levels: economic, environmental

and social.

The social intervention model presented aims to enhance the

contribution of extractive companies in local development by acting as

a catalyst for economic growth and social change.

This proposal could reduce dissatisfaction with extractive activities

and as a consequence reduce their risks and costs associated with social

conflict.

Questions? Comments?

sandra.carrillo@pucp.pe

pe.linkedin.com/in/sandracarrillohoyos