IFC has been a long-term partner of responsible mining development in Peru and has engaged with Minera Yanacocha for 24 years as a lender and equity investor. In December 2017, IFC sold our 5 percent equity stake in Yanacocha to project partners Newmont and Buenaventura following a regular review of IFC’s portfolio of investments.
Yanacocha was one of IFC’s longest-held investments, and over the course of our engagement we worked jointly with our partners to improve environmental and social practices at the mine and to support community development in the Cajamarca region. When IFC invested in Yanacocha in 1993, it was very difficult for a mining company in Peru to secure long-term financing due to the armed conflict and political risks in the country. Since then, Yanacocha has grown to be one of the largest gold mines in the world, generating on average more than $200 million in annual revenues for the Government of Peru, employing nearly 6,000 full-time and contracted workers, and supporting thousands of indirect jobs in Cajamarca’s agribusiness, forestry, and other sectors.
IFC’s work with Yanacocha went beyond providing financing: we worked with the company and its ALAC Foundation to improve its community investment programs and support agricultural, education, and health projects that improve livelihoods in the local area. IFC also pioneered a program to help local government authorities re-invest mining royalties to support public services in the region, an initiative that has been replicated in other regions of Peru as well as Colombia and Bolivia. Through this program, local governments have used tax proceeds from Yanacocha to provide 40,000 people with access to new or improved basic services, including rural electricity, roads, schools, water systems, and primary health care. IFC also developed a program for small- and medium-sized enterprises that has helped local companies become suppliers to Yanacocha and boost local employment and incomes.