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

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.