HudBay Minerals/KfW: Lender social audit – Constancia copper project


Plexus was commissioned to provide social safeguard support as part of a comprehensive technical, environmental and social audit process on behalf of a consortium of Equator Principle Financial Institutions (led by KfW) planning to invest in a mine development project in Peru. The mining concession had just been acquired by Hudbay Minerals. The audit was carried out over a three-year period and focused, inter alia, on community relations and consultation, resettlement and social investment. 


We reviewed existing project documentation, including the draft ESIA, the resettlement action plan and related social investment documentation. We also carried out site visits to undertake interviews with project staff and contractors as well as with the affected communities.

The audit process covered key issues such as the adequacy of the project’s community relations, social performance and the project’s approach to resettlement and social investment as well as relations with artisanal mining activities in the vicinity of the project. The objective was to verify the compliance of the project with the requirements of the IFC Performance Standards and the Equator Principles, to identify any potential gaps and to make recommendations for improvements in performance.


Alongside detailed site visit reports, Plexus provided the client with a gap analysis and recommendations to ensure full compliance with the IFC Performance Standards and the Equator Principles. As part of the project a number of workshops were held with the client, the project proponent and key contractors. 

The audit process highlighted the need to address key issues such as cumulative impacts, water scarcity, contractor management, and enhanced stakeholder engagement, including with artisanal miners. In response, the project proponent developed policies and procedures in these and related areas.