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Securing Free, Prior and Informed Consent

Inmets Cobre Panama Project

PDAC March 3 2013

Director Public Affairs and Communities Minera Panam

Mercedes Morris

Edwin Urresta
Director Latin America rePlan

Cobre Panam Project Location

Project Components
Port Power Plant

Transmission Line Coast Road Tailings Management Facility

Plant Site Facilities

Waste Rock Storage

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

Process Plant Mine Pits


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

Indigenous Communities: Chicheme & Petaquilla

Recent Ngbe migration to concession (2000-2010) Spontaneous colonization on State Land
Nueva Lucha 37 families/369 inhabitants Nuevo Sinai Petaquilla Chicheme 41 Families/294 inhabitants 14 familes/210 inhabitants 22 families/98 inhabitants

Self-identify as Ngbe 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.

Scope of Displacement
Affected Households

Performance Standard No. 7

Performance Standard No. 7


Resettlement Action Plan Collectively Signed



Livelihoods Restoration & Community Development Plan


Replacement land selection process

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 Sina, Nueva Lucha)

Lessons learned
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: Its a process


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