Mining and community relations in Peru: can agreement be reached?

Abstract

Purpose The purpose of this paper is to introduce a country’s mixed history of colonialism and cultural heritage as a background to the management of a mining company’s community engagement. Mining-related social conflicts have intensified in Peru as mining expansion challenges Andean people’s traditional livelihoods. It is generally thought that resolving such conflicts requires a set of long-term strategies and engagement. Design/methodology/approach The case study has been developed using an inductive methodology through content analysis of newspaper reports, official documents and the academic literature. It follows a complex and evolving situation, blending social and cultural theory and norms with actual events to provide insight into the conflicts’ historical, social and cultural forces. Findings Mining conflicts are complex business and strategic problems that call for a more thorough analysis of causal variables and a deeper understanding of the underlying cultural and historical forces. Transactional community engagement responses may not always be adequate to maintain a mining project’s social licence. Originality/value Based on the information presented, students can use the case as a means to examine and critique community engagement approaches to social conflict resolution through this summary of a real-life example of social conflict in Peru’s mining industry. The case may also be used as the basis for teaching forward planning and contingency management for long-term projects involving stakeholders and potential conflict. The case has been used as a resource for teaching communications, risk evaluation and community engagement strategies as part of a Master’s in the Energy Sector Management programme in Peru.