Reading the case we understood that that the Antamina Mining Company “CMA” faced two main problems while building copper and zinc mining operations in Peru. The problems are listed as follows. Transportation issue
The first main problem which the company faces is connected with their initial plan to use the Central road passes through the environmentally sensitive Huascaran National Park “PNH”. There was a clear opposition from the side of The Mountain Institute NGO, UNESCO and national park authorities which could make a conflict in the result of which international financial institutions may question their willingness to provide funding to CMA. Resettlement issue
In order to start the construction of the mining plant the CMA was to implement the resettlement plan which would insure that affected families would attain living standards equal to or superior to those they experienced prior to the project. Changes in the structure of company’s ownership affected some changes in the original resettlement plan, so there was a need for resettling people from the areas bordering the Antamina project within 60 to 90 days. The first problem is merely financial, while the second one is a more socio-economic and political issue. The problem arose because of internal transformation of the company: the company lost some precious time acquiring new investments. The company must do its best to meet the deadlines, but at the same time not to lose its brand name in the eyes of the community and solve issues ethically. While defining the problem, we found marginal issues connected with the fishermen from Huarmey (Punto Lobitos) and with the inhabitants from San Marcos. In both cases, we considered the problem minor, assuming that all these problems are connected with social-economic issues, and with the situation of the population. We think that their main goal is to get reimbursement. It becomes obvious regarding the problem with resettles from...
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