Connecting with Community: Holistic Mining at Anglo American’s Quellaveco

Anglo American is putting values into practice at its new mine, Quellaveco, in Moquegua, Peru, where the company is implementing its FutureSmart Mining™ blueprint. FutureSmart Mining™ focuses on sustainable practices and responsible production through technological innovation and community engagement. Particularly noteworthy in this approach is Anglo American’s model for conscientious community outreach focusing on workforce protection and development, as well as societal and economic investment.

Anglo American is committed to holistic progress. Quellaveco will be a fully automated mine that employs the latest electric vehicle technology, ensuring sustainable operations that are safer and more efficient. Anglo American has also invested in the development of its workforce, providing skills training for its innovative technology. Quellaveco will not only maintain but increase its workforce, providing unprecedented employment opportunities to the region.

Additionally, Anglo American is partnering with the Peruvian nation to support its economic and societal development. Mining represents about 10 percent of Peru’s GDP and 60 percent of its exports, making it a key facet of Peru’s economy. Anglo American has earmarked $300 million for local development alone and has already directly invested more than $114 million in local goods and services. The company will continue its commitment to working hand in hand to develop community programs across the nation.

We are grateful for the strong support we have gained from our host communities and at the national level. Quellaveco should bring very significant opportunities and sustainable benefits to the lives of those we employ, our business partners, the surrounding region and Peru as a whole, for decades to come.” – Mark Cutifani, CEO Anglo American

INVESTING IN LOCAL COMMUNITIES

A Workforce of Opportunity

Automation has led to significant employment losses across the globe. However, Anglo American will transition to automated operation without any cuts to its workforce at Quellaveco. In fact, the mine will create jobs for the mine’s surrounding communities. Quellaveco is proud of its local talent and plans to expand employment opportunities as the mine becomes operational.

Quellaveco will be a fully digital mine with a safe and positive working environment. Anglo American is investing in extensive training programs to prepare local personnel to develop skills and expertise to manage automated technology. Technicians will analyze real-time data and predictive modeling to track and improve operational efficiency and safety, from the removal of the ore to its processing and shipping.

Anglo American anticipates recruiting 5,600 of its 14,000 employees from local communities. After production begins, Quellaveco will maintain a local workforce of 2,500 people. These statistics make Anglo American the top employer in Moquegua and one of Peru’s ten largest employers.

Community Impact

It is only through being responsible and collaborative partners that we will be able to achieve that level of trust that society demands from us. We have had a permanent engagement with the local community and continue to enhance and build support as a long-term partner for the community of Moquegua.” – Tom McCulley, CEO Anglo American Peru and Group Head of Projects

The company has also earmarked $300 million to support local communities in Moquegua over a 30-year period, establishing a vast array of programs with diverse public and private sector organizations and interest groups.

In 2011, Anglo American conducted dialogue roundtables with representatives of 31 civil society organizations, grassroots groups and governmental bodies. Technical experts at Anglo American drew on this series of discussions, which lasted over a year, to inform the design of the mine and social impact programs. They established 26 formal agreements to address water access, environmental conservation and economic development.

Following these consultations, Anglo American established training programs to support private sector businesses and civil society organizations. Through its Quellaveco Fund, which has a $10 million budget, Anglo American awarded grants to 30 civil society projects in the fields of education, health, nutrition and agriculture to assist an estimated 25,000 people in the region. The Fund has supported the establishment of new networks to increase the sales of produce and herbs grown by area farmers, with some participants reporting up to a 65 percent rise in revenue. It has additionally sponsored training in water optimization techniques for agriculture, leading to a 60 percent rise in grapevine yields per hectare at one farm in Omate.

Quellaveco is also making major contributions to the economic development of the region. By 2019, officials at Quellaveco purchased $114 million in goods and services from businesses in Moquegua. Once operations begin, Anglo American will pay taxes and royalties of up to $200 million per year, contributing to funding schools, medical facilities, water treatment and road maintenance.

Anglo American has built on these successes by developing the Emerge Peru enterprise program, which supported the establishment of 400 businesses. The company also worked with government bodies to further develop programs in the region. In 2014, Anglo American created the Development Fund of Moquegua in partnership with local government authorities and the Chambers of Commerce of Moquegua and Ilo, another city in the Department of Moquegua. This fund provided $30 million to support an agricultural infrastructure project to help 10,000 farmers. Additionally, it contributed $10 million to fund education programs in technology. In 2018, Anglo American established the Regional Entrepreneurship Support Council in partnership with 12 public and private sector bodies to assist local businesses; its programs have since provided training to staff from over 1,000 companies.

Conscientious Engagement for the Future

Quellaveco’s FutureSmart Mining™ model of community engagement highlights the importance of local involvement for positive societal and economic impact. Anglo American is committed to developing and investing in its regional workforce, protecting not only their workplace wellbeing but also their jobs through sustainable technological innovation. Through its regional and national partnerships and locally led initiatives, Anglo American will continue to ensure its operations strengthen its host communities both now and in the future.

About Anglo American

Anglo American plc is a diversified multinational mining firm based in London, the United Kingdom and Johannesburg, South Africa, and is a major copper producer with four copper mines in Chile.

About Anglo American Quellaveco S.A.

Quellaveco, which lies in Peru’s southern Moquegua region 3,500 miles above sea level, is a 60-40 percent Joint Venture (JV) between Anglo American and Japan-based Mitsubishi Corp. The Anglo-operated project in the Andes Mountains of southern Peru will utilize open pit mining and flotation processing to produce copper concentrate, along with molybdenum and silver by-products. The operation will yield 300,000 tonnes of copper annually with first copper pending 2022.

About the Copper Alliance®

The Copper Alliance is a network of regional copper centers and their industry-leading members. It is responsible for guiding policy and strategy and for funding international initiatives and promotional activities. Headquartered in Washington, D.C., the organization has offices in three primary regions: Europe, Asia, and North America. The Copper Alliance has partnerships and programs in more than 100 countries.

01 May 2021

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