Minera Yanacocha S.R.L. is a large open-pit gold mine located in the Andes mountains, in the Department of Cajamarca, Peru. The company is engaged in the exploration and production of gold. Over a period from 1993 to 1999, IFC committed three loans to finance the capital expenditure programs for three of the Company’s mines, Carachugo, Maqui Maqui and La Quinua. In parallel, IFC made an equity investment for a 5% ownership stake in the Company, which it continues to hold.
In February 2014, CAO received a complaint from a former employee of Yanacocha who raises concerns about employment termination and the lack of due process, along with other labor issues.
CAO found the complaint eligible for assessment in March 2014, and met with the relevant parties on several occasions. While the complainant expressed his willingness to participate in a dispute resolution process, the company preferred that the case be resolved through the judicial processes initiated by the complainant. As per CAO’s Operational Guidelines, the complaint has been referred to CAO Compliance for appraisal of IFC’s performance.
In May 2015, CAO published a Compliance appraisal report regarding IFC's investment in Yanacocha and considering four separate complaints (04, 05, 06 and 07). CAO has determined that an investigation was not merited and has closed the four cases.
CAO's Compliance appraisal report, providing a full description of CAO's decision with regard to this case, is available under "View Documents" below. As of May 29, 2015, CAO has closed the case with no further action.
Status as of May 29, 2015