Securing Free, Prior and Informed Consent

Inmet’s Cobre Panama Project

PDAC March 3 2013

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Mercedes Morris Director Public Affairs and Communities

Minera Panamá

Edwin Urresta Director Latin America

rePlan

Cobre Panamá Project Location

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Project Components • Deep draft port • Concentrate dewatering

facility • 300 MW power plant • Processing plant • 3 open pits • Ancillary installations • Tailings management facility • 230 kV overhead power line • Coast Road, pipelines

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Port

Transmission Line

Coast Road

Tailings Management Facility

2km

Process Plant

Plant Site Facilities

Mine Pits

Waste Rock Storage

Power Plant

Our Standards

• Inmet's CR Management system, relevant policies (CR, HR), procedures

• International Finance Corporation/World Bank • United Nations Global Compact • Global Reporting Initiative (GRI) • Mining Association of Canada - Towards Sustainable Mining • International Council on Mining and Metals (ICMM) • Voluntary Principles on Security, Human Rights • Adopted Extractive Industries Transparency Initiative

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Indigenous Communities: Chicheme & Petaquilla

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• Recent Ngäbe migration to concession (2000-2010) • Spontaneous colonization on State Land

Nueva Lucha 37 families/369 inhabitants Nuevo Sinai 41 Families/294 inhabitants Petaquilla 14 familes/210 inhabitants Chicheme 22 families/98 inhabitants

• Self-identify as Ngäbe • Although not traditional territory, INMET acknowledges rights as indigenous

peoples. • Marginalized and impoverished • Satellite settlements of Nuevo Sinai, Nueva Lucha • Minimal access to education, health, public services • Subsistence agriculture (Chicheme), artisanal mining (Petaquilla) main

sources of income

Free Prior and Informed Consent • UN Declaration on Rights of Indigenous People (ratified by Panama) and

ILO Convention 169 (not ratified by Panama) require a form of consent from indigenous peoples regarding their resettlement.

• UN Declaration on Indigenous Peoples, in particular, requires “free, prior and informed consent” (FPIC)

• IFC Performance Standard 5 (Involuntary Resettlement), 7 (Indigenous Peoples)

• INMET-MPSA defined FPIC : “as a collective expression of support for resettlement by displaced indigenous peoples, reached through an independent and self-determined decision-making process undertaken with sufficient time, in accordance with cultural traditions, customs and practices and in compliance with Panamanian law as appropriate”.

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Scope of Displacement Affected Households

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Performance Standard No. 7

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Performance Standard No. 7

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Resettlement Action Plan Collectively Signed

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Livelihoods Restoration & Community Development Plan

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Replacement land selection process

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Indigenous communities will resettle as communities:

• Chicheme required approx. 650 ha (land

secured)

• Petaquilla required approx 350 ha (land secured)

• Group tours organized to visit sites and select together

• New land located near current communities

• Maintain contact with mother communities (Nuevo Sinaì, Nueva Lucha)

Lessons learned

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Be transparent, patient, communicative Respect local culture, beliefs Respect community sense of time Engage permanently, daily Manage expectations Acquire replacement land carefully with

community involvement Maximize local jobs with proper training Inform in advance, achieve consent Prepare for negative attention Never relax: It’s a process

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