Securing Free, Prior and Informed Consent at Inmet’s Panama project – ICMM June 2012 Newsletter

This article is from the International Council on Mining and Metals (ICMM) June 2012 newsletter.

Inmet’s Cobre Panama Project is one of the largest undeveloped copper deposits in the world and represents the largest private sector investment in Panama’s history.

Inmet’s 80 percent-owned subsidiary Minera Panama S.A. (MPSA) identified the need to recognize and respect the land tenure of Ngäbe indigenous people who since 2003, have migrated eastward from their reserve, informally settling in the project area in search of a better life.

When it became clear that the development of Cobre Panama would involve the displacement of some Ngäbe families, MPSA established a resettlement process that emphasizes the highest international standards of fairness and transparency, tailored to account for language, cultural, gender, generational, family and community variables.

As part of the resettlement process, in-depth consultations and negotiations were conducted with those affected under the leadership of indigenous rights experts – including Ngäbe employees – and rePlan, experienced third-party resettlement professionals. The process has successfully resulted in the fully documented free, prior and informed consent of those being
resettled.

Early engagement

The engagement process began during the exploration and feasibility phases of the project – concurrent with Inmet’s consolidation of ownership in the project – when MPSA engaged with potentially affected families and communities to provide them with information and, in parallel, learn more about them. As a result of experiences with prior efforts by other companies, the Ngäbe settlers in the project area were initially distrustful and did not consent to survey or drilling activities in the vicinity of their communities.

Adopting a respectful stance, MPSA continued to work to build trust and facilitate dialogue with the communities and families based on specific commitments and actions. They developed a policy to recognize indigenous peoples´ right to free, prior and informed consent and explained this right to them. As a result of the establishment of the policy the communities eventually agreed to engage in dialogue.

The possibility of physical and economic displacement was explained and to demonstrate Inmet’s respect for the communities’ rights, their consent was sought and received to begin formal negotiations on resettlement.

From the outset, Inmet also worked to build capacity within the indigenous communities by providing access to information on national and international resettlement norms and standards, terminology, procedures and alternatives. Additional working groups were constituted with technical support from MPSA’s community relations team and rePlan to facilitate a clear understanding of all principles, impacts and alternatives before formal discussions and decisions took place. Families were also encouraged to invite observers and persons who could support them in their analysis.

Resettlement Action Plan

Eventually every household adult member selected representation on Resettlement Negotiation Committees. In partnership with these committees, MPSA developed a multi-year and multi-faceted Resettlement Action Plan (RAP) that set out its commitments, compensation frameworks, principles, procedures, organizational arrangements, provisions for monitoring and evaluation, livelihood restoration plans, a framework for participation and a mechanism for addressing grievances. Every specific aspect, topic and decision relating to the RAP was the result of extensive analysis and informed decision-making by the affected families. The Ngäbe involved were given the opportunity to freely choose areas to which they wished to resettle.

MPSA arranged for third-party technical advice to families to make informed decisions as part of their selection process. With such technical support, each household detailed family investment plans that incorporated their desire to either reestablish previous livelihood activities or move to new productive sustainable economic activities. Final house designs incorporated their preferences, and the allocation of plots in the new communities account for traditional practices of the Ngäbe.

Consent

Dedicated and full participation was achieved and documented and every household was
represented during the entire negotiation process. Families that requested more time to consult were provided with that time and also encouraged to seek third-party advice. MPSA’s approach ensured that the resettlement program did not impose any decisions or actions on families, and where necessary, families were included to participate and were provided with further  explanations to assist decision-making.

 As part of MPSA’s process, the Panamanian Ombudsman´s Office, the Ministry of Government and the Department of Indigenous Affairs were kept up-to-date on the resettlement program. Through the hard work of those involved, all households eventually provided their free, prior and informed consent to resettle.

For comments or further information, please contact Craig Ford, Vice President Corporate Responsibility at craig.ford@inmetmining.com