We support communities by working together with governmental authorities and investing significant resources to understand their needs and expectations.

How we measure performance

Local Workforce

% of workforce from local communities

Local Procurement

value of goods and services

Social Partner

days of community-related stoppages

Social Investor

% of revenue spent on social investment

OUR APPROACH TO SERVING OUR COMMUNITIES

Our communities are one of our most important stakeholders that we work with. Hochschild’s aim is to ensure its positively contributing towards our communities’ social development agenda in a meaningful way.

The Hochschild way is to promote close collaboration with our local communities with full respect for local customs, social dynamics and human rights.

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 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.

We have Permanent Information Offices (PIOs) in a town near our Inmaculada site and in Pallancata. Offices are also located in Perito Moreno, in the Santa Cruz province of Argentina. The purpose of the PIOs is to support the communities, acting as a point of contact to communicate current and potential activity of mining related projects. The PIOs also receive and manage any grievances that may arise. Adapting to the ongoing challenges of COVID-19, we now 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 manner.

Community investments

We make investments in various social programmes that benefit the communities in our areas of influence; this is a core part of our overall community strategy. In 2021, we invested a total of $6.15m in partnership with national authorities, reaching over 10,000 individuals across our four strategic core themes:

  1. education
  2. connectivity
  3. health and nutrition, and
  4. socio-economic development.

Supporting Local Governments

We have agreements signed with six local municipalities near Inmaculada and Pallancata, which aim to provide support in four specific areas:

  • investment in an infrastructure project that we select together with the municipal authorities;
  • financing of a technical study;
  • support with capacity building; and
  • in specie donations made to municipalities.

Local employment

Generating employment opportunities for residents living near our mining operations is a key part of our community contribution.  Our objective is to gradually increase the proportion of local employees over time.

In Peru, we employ 522 members across the communities in our six mines. For example, at Selene and Pallancata, local employment accounted for 28% and 9.3% respectively of the total workforce. 

In Argentina, we employ 698 workers and 466 contractors at our San Jose mine from the Santa Cruz province, representing 58.9% of the total workforce.

In Chile, 13 local workers were employed by Aclara at the Penco project.

In addition, Hochschild’s “Impulso Productivo” programme was designed to strengthen local entrepreneurs’ business management skills. This includes developing investment and improvement plans, as well as  providing access to markets.

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 2021, we procured goods and services from community-run businesses from the direct areas of influence of the mine sites in Peru worth $10.4m. Additionally, $53m were procured from businesses in the Santa Cruz province in Argentina. The difference in magnitude responds to the considerations used in each country to define “local”, in line with their specific permits and requirements.

2021 Highlights

$63.6m

Value of goods and services procured from local providers

$6.2m

Spent or donated by the Company to benefit local communities

1,699

Community members employed by the Group