OUR APPROACH TO SERVING OUR COMMUNITIES
The focus of our social engagement strategy is on generating a positive impact. We do this by building long-lasting partnerships with local communities and through implementing initiatives that aim to address their needs.
Our approach to generating positive impact is guided by our Community Relations Policy which emphasises our dedication to building trust and listening to community concerns.
2024 Highlights
26.1%
Local procurement vs total procurement
2023: 17.4%
1.22%
Social investment vs net revenue
2023: 1.18%
Social engagement strategy focus areas
Engaging with our communities
We engage in regular dialogue with local communities and monitor our social impact by gathering detailed feedback. Our community relations activities ensure that stakeholders are informed of Company activities, queries are responded to, and that any suggestions regarding projects that have any impact on them are encouraged and received. Communication channels are tailored to each community in order to maximise engagement. Typical engagement channels we adopt include guided site visits, meetings with authorities & community members, focus groups, and participatory environmental monitoring.
Our Permanent Information Offices (PIOs), which serve the Inmaculada, Pallancata, and San Jose mine sites, provide a central point of contact for communities to ask questions or express concerns about our mining operations. The PIOs also receive and manage any grievances that may arise. We also offer digital services through WhatsApp and Facebook channels. Through this “Virtual PIO” we are now able to provide maps, charts, and documents with community members in an accessible matter. To address ongoing community concerns, we have a formal grievance procedure in place to respond to complaints, inquiries, and requests from local communities.
In 2024, no work stoppages occured as a result of community-related matters.
Community investments and supporting local governments
We make investments in various social programmes that benefit our communities and is a core part of our overall community strategy. In 2024, we invested a total of just under $10m in Peru and Argentina, including ad-hoc philanthropic campaigns and the provision of technical assistance to municipalities.
In addition, we invested $2.5m in social investments in Brazil in 2024. With the first full year of operations, detailed social statistics relating to our Mara Rosa mine site will be included in 2025 results.
Local employment
Generating employment opportunities for residents living near our mining operations is a key part of our community contribution. We strive to generate local employment opportunities and aim to gradually increase this over time. In 2024, local workers made up 59.3% of our workforce in Peru and Argentina, representing a slight improvement from our 2023 result of 59.1% against our 2030 ambition of 60%. This figure includes both direct employees and contracted workers. Since January 2025, Brazil is included into the calculation of the total local workforce. We estimate that in 2024, 85% of our workforce in Brazil were local.
This effort to employ locally is implemented through our programmes and initiatives. For example, our Mining Partner Programme in Perito Moreno, Argentina, provides local residents with theoretical and practical training, seeking to contribute to their professional development within the mining sector. Of the 30 participants in 2024, 28 successfully completed the course and joined the workforce at the San Jose mine.
Procuring local goods and services
Alongside creating local employment opportunities, we also look for ways to support local businesses. This is a core activity at Hochschild, and one that enables business to generate long-term, tangible socio-economic value for communities. In 2024, local procurement made up 26.1% of our total procurement in Peru and Argentina, exceeding our 2030 ambition of 20%. Since January 2025, Brazil is included into local procurement results. We estimate that, in 2024, local procurement in Brazil amounted to 40% of total procurement.
Contibution to the SDGs
