Case Study: Northern Peru Copper Corporation


Review a resettlement process against the Equator Principles as part of Northern Peru Copper Corp’s development plan for a mine in Peru.

Our Approach

Northern Peru Copper Corp (NPC) is a Canadian-based mining firm with a subsidiary in Peru, Lumina Copper. This subsidiary undertook a bankable feasibility study of a potential mine site in Peru’s north.

In September 2007, NPC engaged ERM to review the resettlement process necessary to develop the mine. Such third-party reviews are prescribed by the Equator Principles (benchmarks to manage environmental and social issues in global development finance). NPC is keen to comply, as it will likely seek Equator Bank financing in the future.

ERM checked whether the local Peruvian contractor was completing the resettlement in line with best practice and proposed ways to close the gaps.

In so doing, ERM reviewed resettlement documents and social management plans and met stakeholders to determine the extent of process application. ERM also liaised with the community to review their involvement in the resettlement process and the degree to which it was consistent with plans.

With this information (which included a site assessment) ERM created an action plan which the client is implementing. ERM will return to the project later this year to verify whether recommendations have been implemented.

Benefits and Value

ERM identified breaches of the Equator Principles requirements that could jeopardize the NPC’s prospects of World Bank financing.

ERM also provided actionable recommendations to improve community relations and resettlement process management.

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