Social and Economic Development

Children walking over a bridge together.

Our Social License to Operate is granted by the communities in our areas of influence. Thanks to the trust we have built over the years, the communities enable the continuity of our operations, witnessing the positive transformation that Mineros generates around its operations.

Our social management focuses on the communities within our area of influence, specifically:

Colombia

Within the Bajo Cauca Antioqueño subregion, in the urban and rural areas of the municipalities of El Bagre, Zaragoza, Caucasia, Nechí and Anorí.

Nicaragua

In the urban and rural communities of the city of Bonanza and the municipality of Rosita, Autonomous Region of the Caribbean Coast (RACCN).

Social management, understood beyond the traditional focus of Corporate Social Responsibility, is articulated with the following Sustainable Development Goals:

Sustainable Development Goal – 1. No Poverty

Sustainable Development Goal – 2. Zero Hunger

Sustainable Development Goal – 3. Good Health and Well-Being

Sustainable Development Goal – 4. Quality Education

Sustainable Development Goal – 5. Gender Equality

Sustainable Development Goal – 6. Clean Water and Sanitation.

Sustainable Development Goal – 8. Decent Work and Economic Growth.

Sustainable Development Goal – 10. Reduced Inequalities.

Sustainable Development Goal – 16. Peace, Justice and Strong Institutions.

We promote the development of the territories where we carry out our productive activity and contribute to the organization  of society, seeking to become promoters of the generation of shared value, social inclusion and institutional strengthening.  To achieve this, we seek to act within a participatory, organized, planned and concerted process with the communities and governments so that local resources are used sustainably, and opportunities for long-term development are generated for  the community.

In 2023 we continued developing 73 programs and allocated more than US$
3 million to the development of our communities.

Community Development Programs

We seek to contribute to the development and well-being of the communities through programs that increase the installed capacity in the territory so they keep their development paths after closing our mining projects.

The programs we promote and support aim to:

Generate local economic alternatives.
Improve urban and rural social infrastructure.
Provide high-quality education.
Promote art, culture, sports and recreation.
Strengthen the local governance capacities.
Promote access to health services.

Bonanza Emprende Model

The Bonanza Emprende model aims to ensure the economic future of cooperatives and independent artisanal miners through the development of economic diversification projects, consulting and training in skills such as accounting and financial data analysis, leadership, and business plan development, among others. The model currently promotes entrepreneurship projects in activities such as growing and harvesting cocoa, developing bakeries and tending livestock.

Social License to Operate

In order to be a company committed to ethical and transparent behaviour, we have different tools for dialogue and communication with our stakeholders.

On a biannual basis, we carry out a stakeholder consultation, supported by an external and independent consultant, for promoting participation, obtaining feedback and finding opportunities to further improve and strengthen relationships.
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Based on these consultations, we measured our social license to operate using the model proposed by Thomson and Boutilier, according to which license is defined as a community's perception of the acceptability of a company and its local operations.
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The company's latest social license review process began in the first half of 2022 for Nicaragua and at the end of the year for Colombia, and the results were socialized in 2023. The results showed that the operations are above approval levels and gave the guidelines for the implementation of action plans.

Economic Development

We are an example of responsible mining, showing that our sector is fundamental for the sustainable development of the territories, contributing to strengthening the institutional framework of the states and generating productive linkages beyond our value chain. The presence of legal and committed mining organizations is a fundamental factor in guaranteeing the peaceful and sustainable coexistence of all actors in the lands where mining is a subsistence economic activity.

In 2023, we purchased a total of  US$ 157.3 million of materials and services from our suppliers. Of these, 77.6% came from the country where our operations are located, and we acquired a total of US$ 31.3 million from suppliers in our areas of influence.

Artisanal and Small-scale Mining (ASM)

We participate jointly with governments in actions that contribute to extending the reach of responsible mining, through formalization models in Colombia and Nicaragua that are based on an understanding of local territorial dynamics.

Formalization Model of Mineros Colombia

Mineros Colombia has been working on a collaborative model that allows industrial and formalized mining to work together through contracts with third parties. This model in 2023 generated 764 jobs (191 direct, 573 indirect). Miners operating under the model, formerly illegal, now pay taxes and royalties and operate in compliance with the Company’s environmental and labour standards. The formalization model is based on three pillars:

Communication & Culture
Governance
Strategy & Objectives

Bonanza Model for Artisanal Mining in Nicaragua

The Bonanza Model for Artisanal Mining operates in the municipalities of influence within HEMCO’s concession and includes the purchase and industrial processing of ore. Through this model, we promote the generation of shared value, reduce social conflict, allow the sustainable growth of the operation, and improve the living conditions of artisanal miners.

The Model is based on the inclusion and participation of all actors in the mining chain, and is therefore strategic for the economic growth of the artisanal sector, the company and the community. The links in this chain are made up of the following:

Mineros Nicaragua
CMMA (Municipal Commission of Artisanal Mining)
Artisanal Miners (Associated and Independent)

The model currently comprises approximately 6,000 miners associated with 1,578 collectives (groups of 3 or 4 people). By the end of 2023, 3,533 miners in the model (58%) have life and accident insurance.

Artisanal Mining Safety Model

‍Hemco Mineros Nicaragua’s safety model aims to reduce accidents in artisanal mining to a minimum by protecting and guiding artisanal miners on safety and risk management issues.

‍Among the lines of work that have been implemented in the model are: inspection programs, training for miners on risk identification and generation of controls, awareness of access to life and accident insurance, and innovation with safer and more accessible methods for mineral extraction.

Some of the outstanding results of the model are: the creation of networks of artisanal miner inspectors, the increased participation of women and the implementation of safer winches. The model promotes teamwork as a central element in risk minimization.