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Mine Accommodation Strategies — Case Studies in Developing
Countries
S D Costa1 and M J Scoble2
ABSTRACT
Early strategic mine planning includes decisions over the organisation of
work and workforce accommodation. These decisions involve significant
commitments that affect not only employee quality of life but also the
impacts and relationships with existing local communities.
Strategies for workforce accommodation are characteristically
community-based (either as purpose-built company towns or integrated
within existing local communities) or commuter (fly-in, fly-out) mine
camps. The quality of accommodation underpins the fulfilment, morale
and motivation of employees. This is not only relevant to productivity and
safety, but also to recruitment and retention, particularly with the current
onset of a significant human resources crisis. In the event that
communities exist in proximity to a proposed mine then the
accommodation strategy selected can influence the value-adding potential
for the sustainable development of such communities. This early planning
is particularly challenging where mine locations are isolated and/or face
significant economic, social and political adversity.
This paper draws upon a case study review of five large mining
projects implemented in three South American countries, selected to
cover a range of scenarios and accommodation strategies. The review
aims to advance our understanding of the complexity of the underlying
planning issues. Each scenario considered the prevailing environmental,
social, economic and political situation, together with the adopted
accommodation strategy. The case study review aimed to identify lessons
learned and to make recommendations for advancing mineworkers’
accommodation planning practice.
INTRODUCTION
Mining companies typically face early strategic planning
decisions relating to human capital in terms of defining work
organisation and workforce accommodation strategies
(housing-recreational-welfare infrastructure and practices)
through the mine life cycle, particularly in isolated locations. The
quality of the accommodation strategy impacts the ability to be
an employer of choice in an increasingly competitive human
resources marketplace. Mining companies operating in poor and
developing countries have historically faced the challenge to
reconcile the needs to recruit and retain a skilled workforce,
partly sourced externally to the area, and to meet local
community employment responsibilities. In this context, the
planning decisions regarding accommodation can significantly
impact the company’s relationship with the surrounding
communities and its ability to obtain what has been defined as a
‘social licence to operate’.
Little prior research has considered the process and factors
affecting workforce accommodation planning. Decisions
regarding accommodation might logically be thought to relate to
site-specific factors, including the environmental, economic,
social and political characteristics of the mining project location.
Understanding local cultural and social factors is important in
effectively engaging with local communities, ensuring their
involvement in planning and respecting human rights. In poor
and developing countries, accommodation decisions may well be
1.
2.
PhD Candidate, Norman B Keevil Institute of Mining Engineering,
University of British Columbia, 6350 Stores Road, Vancouver BC
V6T 1Z4, Canada. Email: [email protected]
Professor and Head, Norman B Keevil Institute of Mining
Engineering, University of British Columbia, 6350 Stores Road,
Vancouver BC V6T 1Z4, Canada. Email: [email protected]
International Mine Management Conference
placed in the context of opportunities to alleviate local housing
shortages and slum proliferation. Operating in a scenario of local
poverty raises challenging issues, since large mining projects in
poor and developing countries often attract migration and the
consequent proliferation of informal, unserviced settlements in
the surrounding communities.
This work arises from the conviction that mining operations
need to be able to adopt an approach to accommodation planning
that reconciles workforce recruitment and retention with social
responsibility. This paper draws upon the study of five large
mining projects implemented in three developing countries,
selected to cover a range of scenarios. This study is part of a
wider, ongoing University of British Columbia (UBC) doctoral
research project that addresses the quality of life in locations
where natural resources development takes place. The case
studies, lessons learned and conclusions emerging from of this
paper are a result of early analysis of fieldwork associated with
this ongoing research project.
The study described in this paper aims to advance our
understanding of the complexity of the underlying planning
issues in terms of the prevailing environmental, social, economic
and political situation. It also aims to characterise the strategy
adopted for accommodation planning: within existing local
communities, new mine communities, or commuter mine camps.
It is hoped that this work will lead to the identification of
planning factors and tools from lessons learned and contribute to
advancing future accommodation planning practice.
MINE CASE STUDY REVIEW
The mine case studies reviewed here are five large South
American open pit operations: the Antamina and Pierina Mines
in Peru; the Veladero Mine in Argentina; and Mina do Sossego
and the Carajás Mining Complex in Brazil. This sample of mines
was chosen to include a range of scenarios, experiences and
strategies associated with planning mine accommodation. The
level of reliable data available on these mines was also
considered sufficient for this overview level of analysis.
Data collection methods included a literature and a desktop
review, site visits, and personal communications with current and
former mine employees. General information about the mine
operations was mostly extracted from operations’ websites,
Infomine (www.infomine.com), and corporate presentations and
reports. Information about accommodation strategies, and
validation of general data were attained from corporate reports,
field visit observations and information provided by mine
personnel such as camp superintendents, human resources
officers, community affairs officers and other mine employees.
All the mine sites were visited during the period of May 2004 to
August 2005. Interviews with current and former employees
were conducted on the mine site or at the associated local
communities.
Carajás Mining Complex, Brazil
The Carajás Iron Ore Mining Complex (Carajás), in the Brazilian
Amazon, includes the world’s largest mineral deposit. It is
located in the state of Pará, in the north of Brazil, between the
cities of São Felix do Xingú and Marabá and between the
Tocantins and Xingú rivers. The complex is wholly owned by a
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S D COSTA and M J SCOBLE
large diversified Brazilian mining company, which has
operations in several Brazilian states and in five other continents.
When the Carajás Mining Complex was built, and until its
privatisation in 1997, this company was state-owned (Velasco,
1999). Currently, the Complex directly employs approximately
2150 persons and has an expected life of over 200 years.
Local environment
The Complex is located in the Amazon Forest, on a mountain
range at about 800 metres above sea level. In the Carajás region,
there are two well-defined seasons: very hot and dry summers
and cooler, very humid winters. It is located inside a national
park, the Floresta Nacional do Carajás created after the
establishment of the Mining Complex, in 1998 (Companhia Vale
do Rio Doce, n.d.). According to the decree that created the park,
the objectives of the Floresta Nacional do Carajás are to promote
the research and sustainable management of natural resources,
the study of biodiversity and to bring social benefits for the
surrounding communities through responsible natural resource
exploitation and tourism (IBAMA, 1998).
At Carajás, forest clearing around mines is minimised and
closely regulated by Brazilian authorities. However, outside the
concession granted to the mine operation, forest clearing by
farmers and ranchers is rampant, particularly along the 890 km
railroad to Itaqui in the neighbouring state of Maranhão (Smith
et al, 1995).
Local social aspects
Before the establishment of the Complex, about 1000 aboriginals
lived in 92 villages in the areas surrounding the mine site
(Companhia Vale do Rio Doce, n.d.). Most of these groups had
historically been in conflict with non-aboriginals that also used
the area for the harvest of Brazilian nuts and other forest
resources as well as some itinerant artisanal mining activity
(garimpeiros). Currently, these aboriginals live in various
villages in proximity to the mine operation, the railway and port
facilities built to support the mining activity (Companhia Vale do
Rio Doce, n.d.).
The construction works of the mining complex started a
considerable socio-economic transformation in the region.
Migration to this area has been significant, as well as the
intensification of economic activity.
Local economic situation
Since the establishment of the Carajás Project, the municipality
of Parauapebas, where the Complex is located, has become the
centre of economic activity in the Carajás region. The local
economy is characterised by a combination of ranching,
agriculture, services and mining related activities.
Mina do Sossego, Brazil
The Sossego Copper Mine is located in the municipality of
Canaã dos Carajás, in the south of the state of Pará, in the
Brazilian Amazon. It is 835 km away from the state’s capital,
Belém. Production at the Sossego Mine started in 2004. It is
wholly owned by the same company that owns the Mining
Complex of Carajás. The Sossego Mine currently has about 600
direct employees.
Local environment
Local political and security issues
The political situation in Brazil and the Carajás region is
considered stable; however, security issues do exist. Crime rates
in the south of Pará are notorious and regional conflicts
associated with land tenure and the ‘landless movement’
(movimento sem terra – MST) often occur.
Strategy for workforce accommodation
With the establishment of the Carajás Project, an initial mining
camp was built to accommodate mine employees and contractors
coming from various parts of the country. When production
started, the construction camps evolved into a small company
town located by the mine site. This initial company town was
soon demolished to give way to the mining operation. A new and
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larger company town – the Núcleo Urbano de Carajás (urban
centre of Carajás) – was thus built in the early 1980s, further
away from the operations where it has remained.
The Núcleo Urbano de Carajás (Núcleo) has suffered virtually
no changes over the years. It remains a small community of
about 5500 persons, mostly mine employees and their families
(Cota, 2005). It includes all basic infrastructure (water, sewage,
electricity, etc), educational and health facilities, banks, a large
community centre, a movie theatre, two hotels, restaurant and
stores, an airport and a bus station. In sum, it was built to be
self-contained and to provide employees with optimum living
conditions. Company housing is provided for a nominal rental
fee. Employees with families are provided with family housing
and most single employees live in shared homes – the repúblicas.
Most services and infrastructure are also provided free of charge,
except for transportation, telephone services and Internet access
(Cota, 2005).
Outside the national park’s fence, the company also built some
municipal services facilities as well as some housing units for
mine employees. This development resulted in the Vila de
Parauapebas (Prefeitura Municipal de Parauapebas, n.d.). News
of this development resulted in high expectations of employment
and business growth in the region and attracted large numbers of
migrants to the area. As a result, the region of Parauapebas has
undergone rapid and uncontrolled growth. Dramatically changed
from the small village it was in the early 1980s, Parauapebas is
currently a municipality of about 110 000 inhabitants (Prefeitura
Municipal de Parauapebas, n.d.).
Parauapebas is a city of migrants, mostly coming from the
poorest regions of Brazil, with little education and training. It has
a highly transient population and very low social capital. The
quality of education and health services, as well as basic
infrastructure in Parauapebas is awfully low, particularly for a
municipality that receives significant resources from mining
taxes paid by the mining company. This is quite significant for
the mining operation because the majority of the Carajás Mining
Complex, and all of the contractors’ personnel currently live in
Parauapebas. Even though the Núcleo was planned to provide
employees with optimum living conditions, it is limited in size
and under strict growth limitations imposed by national park
policies.
As the Complex of Carajás, the Sossego Mine is located in the
Amazon rainforest. However, except for an environmental
reserve, the area immediately surrounding the mine has been
largely deforested for cattle ranching. There are two well-defined
seasons – very dry and hot summers and extremely humid
winters. The local habit of burning the fields for grazing results
in yearly forest fires that threaten the forest surrounding the
Sossego Mine and make for frequent smoky days in the summer.
Local social aspects
Nearby communities in the Sossego region were established
through a 1980s federal government settlement program to
promote agriculture and reduce land related conflict in the South
of Pará. According to Lima (2003), 1550 families that settled in
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MINE ACCOMMODATION STRATEGIES — CASE STUDIES IN DEVELOPING COUNTRIES
the Sossego region were invariably poor and in most part from
the north, northeast and central-west regions of Brazil. These
communities are therefore multicultural and pioneering by nature
(Lima, 2003).
In general, the entire region has been greatly impacted and has
changed significantly since the mine construction, particularly
the municipality of Canaã dos Carajás, which has rapidly
increased its population from about 10 000 in 2003 (Lima, 2003)
to over 20 000 in 2006. Even though Canaã has received
significant investment in infrastructure, education, recreation,
cultural and health services, it is experiencing the challenges of a
‘booming’ city: housing shortages, increased cost-of-living and
pressure on existing physical and social infrastructure.
Local economic situation
The area surrounding the Sossego Mine does not have a strong
economy. The major economic activities in Canaã dos Carajás
and nearby small villages are cattle raising and ranching, some
subsistence agriculture and some forestry.
The Sossego Mine operations, along with the expectation of
four upcoming mining projects in the area, have brought abrupt
and significant changes to the region. Some locals have been able
to find work in the construction and operation of the mine and in
the number of facilities and organisations built or established by
the company in Canaã dos Carajás and the six other vilas.
A few Sossego employees live in the Núcleo Urbano de Carajás
or Parauapebas, both about two hours away from the Sossego
mine site. Some of these employees commute daily to the mine.
Others work in offices located in the Núcleo Urbano de Carajás.
Antamina Mine, Peru
The Antamina Mine is located in the Antamina Valley in the
Andes Mountain, north-central Peru, approximately 485 km north
of Lima by road. Antamina is a Peruvian company owned by a
partnership of four large multinationals and employs about 1400
direct employees (Compañía Minera Antamina SA, n.d.).
Even though Antamina produces several mineral concentrates,
copper and zinc are the main products (Compañía Minera
Antamina SA, n.d.). Operations started in 2001 and are expected
to continue for about 22 years (Orbit, 2002).
Local environment
The mine site is located over 4300 metres above sea level, 1500
metres higher in elevation than the closest town – San Marcos – a
small community about one hour trip by road. As a result,
altitude sickness is a major challenge for the workforce, who live
in the Yanacancha mine camp, within the mine operation. The
climate at Antamina is characterised by two well-defined
seasons: very dry winters and relatively humid summers
(Compañía Minera Antamina SA, 1998). Winter temperatures
can be as low as -30°C (Compañía Minera Antamina SA, n.d.).
Local political and security issues
The political situation in the Canaã dos Carajás region is
considered to be stable. Regarding security, existing concerns are
mostly related to the modest policing services available in the
city and nearby villages.
Strategy for workforce accommodation
Currently, there are different ways in which staff accommodation
issues are dealt with at the Sossego Mine. One hundred housing
units were built for mine employees within Canaã dos Carajás.
As these are completed, they are being assigned to employees
with families or as shared homes for single employees. The
different types of company housing units are dispersed in four
different neighbourhoods (Companhia Vale do Rio Doce, 2005).
Recently, a leasing policy was established. Housing units are
now leased to top employees, who are offered the opportunity to
purchase the unit where they live after five years of leasing.
Employees who were hired before this policy was established
were under the understanding that only a nominal fee would be
applied to the company homes. Considerable discontent has
surfaced from this policy change.
Moreover, even though most of the units have now been
completed, the mine is currently facing severe difficulties with
housing shortages in Canaã dos Carajás. The demand for
employee houses continues to grow. Several employees that
come from other cities have been forced to move into the
Sossego Camp months before they can bring their families to a
company owned or free market housing unit (Pavan, 2005).
The Sossego Camp is an important part of the accommodation
strategy. It is a temporary camp built for the initial phase of city
development, when housing shortages were expected. However,
the need for the camp continues to exist. It is currently the home
for single employees, employees with families who wait for
company houses to be completed or vacated, short-term interns,
and visitors. The Sossego Camp is located at about 30 minutes
from the mine site, on the edge of Canaã dos Carajás, and
includes dormitories, kitchen/cafeteria and a gym. According to
mine personnel, the company’s intention is to dismantle this
facility and use this site for a recreational and sports facility,
which is currently under construction (Pavan, 2005).
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Local social aspects
Antamina operates in an area of poverty and fragile social
capital. In the areas surrounding the operation, about 23 per cent
of the population is illiterate (Compañía Minera Antamina SA,
1998). Human health standards are also low. The Conchucos
Valley, immediately surrounding the operation, is a remote area
in Peru that has little access to resources for development and
was at the mercy of terrorist violence in the 1980s (Compañía
Minera Antamina SA, 2001).
According to the Antamina’s Environmental Impact
Assessment (1998), 93 per cent of the homes in the surrounding
areas had at least one basic need not met, a reflection of
inadequate housing and high dependency on family structures.
Access to social services and infrastructure were generally very
limited (Compañía Minera Antamina SA, 1998).
Local economic situation
The areas surrounding the mine are practically untouched by
development and isolated from economic activity because of its
remoteness and high altitude (Compañía Minera Antamina SA,
1998). The Andean region is mountainous and agriculture is
limited to the production of corn and potatoes in the small
valleys of lower altitude. The main economic activity is
subsistence farming (Compañía Minera Antamina SA, 1998).
The development of Antamina resulted in the loss of lands
previously used by local communities for agriculture and pasture
(Compañía Minera Antamina SA, 1998). In order to address this
socio-economic problem, Antamina’s Resettlement Policy
provided alternative lands for families directly impacted by the
loss of land. The Resettlement Policy also includes the
commitment to provide housing and services that are appropriate
to the socio-cultural context and are designed to improve housing
conditions and access to basic services.
Local political and security situation
Reserves at Antamina were identified and thoroughly studied in
the 1950s although development of the reserves was postponed as
a result of the Peruvian political situation at that time. The
property returned to state hands under the military government in
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S D COSTA and M J SCOBLE
1970s and was held by the state-owned Minero Perú for more than
15 years. It was privatised in 1996. In the 1980s, the area
immediately surrounding the mine was at the mercy of terrorism
(Shining Path armed militia) that followed the military
government reforms. This situation has improved since the early
1990s. The political situation in the region is currently more
stable, but considered by many as uncertain. In general terms,
Peruvian industrial development and natural resources exploitation
seem to be closely related to political interests. This is evidenced
during elections times, when it is common to see local politicians
use the mining theme (usually voicing anti-mining sentiments) as
a means to gain popular support and votes.
Strategy for workforce accommodation
The Yanacancha Camp was established as a closed commuter
camp within the mine property. Most of the camp facilities
remained from the mine construction phase. However,
renovations and new facilities have been built and/or expanded.
The Yanacancha camp includes sports, entertainment and
medical facilities, a large cafeteria, telephone booths and several
food stations. According to mine personnel, Internet connectivity
has been planned for the near future as a way to improve
communications with employee’s families and friends. An
international management company is responsible for the camp
accommodation, housekeeping, laundry and the food services at
the mine site. A camp superintendent oversees this company’s
work as well as other services such as transportation to and from
the mine site.
At Antamina, the commuter mine camp strategy seems to have
been chosen for two main reasons: the remoteness and altitude of
the mine site and the fact that the closest community with
infrastructure and quality of life to meet the needs of employees
– the city of Huaraz – is about a four-hour bus ride away.
Antamina’s employees also have the option to live in company
housing closer to mine site and thus have a shorter commuter to
the mine. This option was implemented in the year 2000, when a
gated housing complex, El Pinar, was constructed in close
proximity to Huaraz. El Pinar has 276 rental homes of different
sizes to satisfy different family needs (Compañía Minera
Antamina SA, n.d.). These homes are administered by the
Compañía. Currently, employees pay a nominal rental fee to live
at El Pinar. The complex resembles a North American planned
suburban community, in sharp contrast to the tight-knit
traditional neighbourhoods of Huaraz. El Pinar includes a
medical facility, school, sports facilities and its own
infrastructure and services (water, sewage, cable TV, etc). It
appears to be well appreciated by the expatriate employees and
national employees with young children, mostly because of the
suburban lifestyle, high quality facilities and available services,
including 24 hour security.
Pierina Mine, Peru
The Pierina gold mine is located in the Callejon de Huyalas in
the Peruvian Andes, 10 km northwest from the city of Huaraz, in
north-central Peru. Pierina is wholly owned by a subsidiary of a
large Canadian multinational mining company. Operations at
Pierina began in 1998 (Barrick Gold Corporation, 2005). Its
official closure and start of definitive reclamation activities are
planned for 2007 and 2008 (Manrique and Rodriguez, 2003). In
2005, the operation had an average of 540 employees and 830
contractors on site (Barrick Gold Corporation, 2006).
Local environment
Pierina is located in the Peruvian Andes, above 4000 metres of
elevation (Manrique and Rodriguez, 2003). The climate at
Pierina is characterised by two well-defined seasons: very dry
winters and relatively humid summers.
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Local social aspects
The Pierina Mine is in close proximity to the medium size city of
Huaraz and the smaller communities of Taricá and Jangas.
Social, economic and health standards of these communities are
quite variable.
Local economic situation
According to Manrique (1996), prior to the Peruvian Military
reforms of the late 1960s, the area immediately surrounding the
Pierina Mine was characterised by the coexistence of large land
parcels and tiny plots cultivated by sparse small peasant
communities. The area of the mine was once a productive and
large hacienda, controlled by a single landowner. Peasants
worked the land, producing mostly potatoes and dairy farming.
At the end of the 1960s, the Peruvian military seized power and
embarked upon a course of reform that included the restructuring
of economic and political power in the country and sponsored an
Agrarian Reform that mobilised peasant sectors of the population
(Manrique, 1996).
Free from the close watch and control of the landowner, the
production of milk, cheese and potatoes in this area declined.
Generally, the population works the land with cultivation
techniques that pre-date the Spaniards and according to the rain
cycle, since few irrigation channels exist (Manrique, 1996). The
local farming knowledge had been lost through the years and at
the time the mine started was limited to subsistence production
of a few products.
Local political and security issues
Following the Agrarian Reform in the late 1960s and early
1970s, the area immediately surrounding the mine was at the
mercy of terrorist violence in the 1980s (Shining Path armed
militia). This situation has since changed, but a certain level of
uncertainty regarding security remains, closely related to
political issues.
At Pierina, during the development of the project, disturbance
to the communities’ lifestyle was evident. Generally, the
population in this region has very low levels of trust in mine
companies as well as the conviction that mining operations
invariably damage the environment. This view has been
supported in the work of Racharte et al (2004). In general terms
in Peru, industrial development is closely related to political
interests. Local politicians appear to often refer to mining issues
in their election campaigns and Pierina has experienced
difficulties in its relationships with surrounding communities
during election periods. Local interest groups have been known
to engage in protests in the vicinity of the mine, seeking
additional benefits from the mining activities.
Strategy for workforce accommodation
Because of Pierina’s proximity to Huaraz, Taricá and Jangas,
employees live in the nearby existing communities, where they
have purchased or rented homes. Approximately 25 per cent of
Pierina’s employees live in a Barrick-built housing complex,
Urbanización La Alborada, located in the town of Taricá
(Barrick Gold Corporation, 2006).
La Alborada includes about 100 homes of two different sizes,
which were all sold to employees (financing options were offered
to enable staff to buy finished houses), a medical facility and a
school. Even though the company’s local office is located in the
housing complex, the company is not responsible for the
administration of neither the complex nor its facilities.
Veladero Mine, Argentina
The Veladero open pit mine is located in the Argentinean province
of San Juan. Operations started in 2004 and are expected to last for
at least 16 years. The mine is owned by a large multinational
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MINE ACCOMMODATION STRATEGIES — CASE STUDIES IN DEVELOPING COUNTRIES
Canadian mining company. According to the Project Veladero
Responsibility Report, the project had an average of 450
employees on site in 2004 (Barrick Gold Corporation, 2004).
the ‘hotel’. The contractors ‘camp’ was often described as ‘el barrio
chino’, a reference to social inequality among classes and races, and
was indicative of what is often a physical and psychological
separation between contractors and the mine workforce.
Local environment
The Veladero Mine is located in a remote site in the Andean
Cordillera, at elevations up to 4000 metres above sea level
(Knight Piesold, 2003). Altitude sickness is therefore a
significant concern for the Veladero Mine management. Very low
fall and winter temperatures as well as very strong winds at the
site challenges outdoor work. Access is by mountain road and is
often precarious and dangerous due to windstorms.
Local social aspects
The closest urban centre is the medium size city of San Juan.
Two small typical Andean villages, Iglesia and Jáchal, are also in
very close proximity to the mine site. The social capital and
basic infrastructure in Iglesia and Jáchal are significantly lower
than in San Juan, which has good educational, health and cultural
facilities.
Local economic situation
The communities in closest proximity to the Veladero Mine,
Iglesia and Jáchal, are remote and have little economic activity.
The main economic activities are cattle raising and small-scale,
subsistence agriculture. San Juan (about 113 000 inhabitants), at
approximately 320 kilometres northwest of the mine, is the
capital of the province of San Juan (Scales, 2005). It has a fairly
diversified economy, including agriculture and ranching, wine
production and a varied and well-established tourism industry. In
the last few years, however, the construction of the mine has
impacted the local economy as it stimulated the establishment of
new businesses (food and housekeeping services, construction,
transportation, security, hospitality, etc) (Diário del Cuyo, 2005).
This impact is expected to continue to grow, particularly because
the company expects to develop another large mining project,
Pascua Lama, adjacent to the Veladero Mine.
Local political and security issues
The Argentinean government has recently enacted a new
minerals and mining legislation and regulatory structure that
provides a number of benefits and tax regimes guaranteed to
remain stable for 30 years (Portal Resources Ltd, 2006).
However, events such as the 2003 referendum in Patagonian
village of Esquel, which resulted in a vigorous negative response
to mining development, suggest that the anti-mining sentiments
in Argentina should not be underestimated. In fact, in the San
Juan region, anti-mining initiatives led by NGOs and university
groups have often caused concern for operating mines as well as
projects in permitting stages.
Strategy for workforce accommodation
In Veladero, the strategy chosen was a commuter mine camp.
Most employees take a long and difficult bus ride (roughly six
hours on an Andean road) from San Juan to the mine site. Other
employees have a shorter commute from Iglesia and Jáchal or
from the neighbouring provinces. In 2005, about four per cent of
the employees were expatriates and needed to fly into San Juan
before taking the road to Veladero (Scales, 2005).
The commuter mine camp is a hotel-style complex, designed
to accommodate about 550 people (Diario del Cuyo 2005).
During construction of the mine, the hotel dormitories, kitchen
and cafeteria, leisure room, convenience store and a
well-equipped medical facility were built. During construction,
contractors also were accommodated in temporary commuter
mine camps of lower quality than the mine permanent camp –
International Mine Management Conference
DISCUSSION: LESSONS LEARNED
Workforce accommodation in the global housing
context
Lack of affordable housing is a problem of increasing global
concern. According to the United Nations, 2007 will be the first
year in history when the global urban population will equal the
rural population (United Nations, 2005). The world’s proportion
of urban population is projected to reach 61 per cent in 2030
(United Nations, 2005). Nearly all the world’s population growth
for the foreseeable future is projected to be concentrated in urban
areas, with most of the growth occurring in the poverty-ridden
cities of poor and developing countries in Asia, Africa and Latin
America (Lowe, 2002).
One of the most noteworthy global problems that follow this
phenomenon is lack of adequate housing (including water and
sewage infrastructure) and overcrowding in urban areas,
commonly observed in slum areas globally. These problems are
significant in poor regions of developing countries such as
Brazil, Argentina and Peru.
In Brazil, the region of Carajás and Parauapebas is an example
of where mining development critically impacted the local
environment and socio-economic structures as it ignited and
continues to fuel a significant urbanisation process in a remote
rural area. A similar trend should be expected for the region of
Sossego, which has recently experienced dramatic environmental
and socio-economic transformation.
It is our belief that the mining industry has an important role to
play, not so much by helping to control the urbanisation by
keeping the rural population away from the large urban centres,
but more so by facilitating local access to adequate and
affordable housing and basic infrastructure.
As an industry, the mining sector has often marginalised its
workforce accommodation. The advent of corporate social
responsibility is beginning to promote an understanding of the
mining industry’s beneficial role in promoting development that
respects human rights to adequate housing and that helps to build
healthy communities.
Social segregation
The Sossego, Antamina and Pierina mines are examples of
workforce accommodation created within existing communities.
From the three cases, Antamina is the most illustrative of the
physical and psychological segregation that can be created with
such a gated accommodation strategy. El Pinar is a community in
many ways different from the existing Huaraz. Even though this
is usually regarded as an advantage to employees that wish to
live in a suburban community that is clean, safe and spacious
(while Huaraz is generally compact, dense and fairly noisy), it
was observed that Huaraz’s residents often perceive the residents
of El Pinar as ‘different’.
The social segregation in Carajás is also significant. Even
though the development of the Carajás mine preceded the bulk of
the development of the town of Parauapebas, a similar social
segregation has unfolded. The company town is located in a
privileged, somewhat protected natural area, with limited access
to non-authorised persons, and clearly superior basic
infrastructure and services. This situation has proved to be a
quandary for the mining company, since Parauapebas has
developed so chaotically that senior employees are reluctant to
move and raise their families outside of the company town.
Melbourne, Vic, 16 - 18 October 2006
21
S D COSTA and M J SCOBLE
Two hours away from Carajás, we observed that Canaã dos
Carajás is a good example of the elite displacement phenomena,
when a new and wealthier elite suddenly establishes itself,
changing the local social structure of the existing community.
This often occurs when a new economic activity is rapidly
established in a small and remote community. However, even
though the transformation in Canaã has been seen by some as
chaotic, the strategy used by the Mina do Sossego seems to better
resolve the accommodation issue within existing communities
that have limited services and/or infrastructure, when compared
to the strategies adopted for Antamina, Pierina or Carajás. A
partnership with the municipality to build and improve
infrastructure and services in the entire community,
complemented by the dispersal of employee housing in a few
areas of the city, have so far forestalled significant segregation
between the mine workforce and other community members.
An interesting observation on social segregation can also be
made on commuter mine camps. The separation of contractor’s
crews and mine employees into dramatically different
accommodations is also a source of conflict and discomfort and
is probably reflected negatively in the productivity and quality of
work at the mine site.
The commuter mining camp strategy
It was observed that mine camps are especially useful and
effective when projects need to find accommodation for a
migrant workforce and expatriates or when the project is located
in a remote or inaccessible location. Among the case studies
reviewed, Antamina is an excellent example of an attempt to
meet employees’ needs and offer a variety of facilities, services,
and recreational options in a mine camp. It is also an example of
camp management dedicated to continuous improvement of the
workforce quality of life. The Veladero Camp at the time of the
site visit still lacked the high profile entertainment and sport
facilities expected by the employees.
The quality of living units and food available to both employees
and contractors in the Antamina and Veladero camps are often
considered to be higher than in the average homes in their
communities of residence. However, working and living in a mine
camp with a rotation schedule and commuter system offers
psychological and emotional challenges that are generally not
effectively dealt with and are often regarded as unavoidable. Issues
that challenge the quality of life in mine camps include: racial,
sexual, religious or social discrimination; stress caused by frequent
partings and reunions; isolation (and little communication with
others outside the camp); and separation from family and
community for long periods of time (Costa, 2004).
Tenure issues
A common problem with employee housing strategies is the
limited range of tenure available to employees. It is our belief
that a range of tenure options offered to employees can be
advantageous for employees and for the local communities.
One of the observed barriers for community development in
mining towns is the ‘boom and bust’ phenomenon and how it is
reflected on housing markets and investments made on city and
community building. When employees view their homes and/or
communities as temporary, it is harder for them to feel part of the
community. Home ownership and the feeling of belonging to a
specific community often result in better-maintained homes and
public spaces and more citizen participation in decision making
at the local level. On the other hand, it might be difficult for
employees to make the financial commitment to purchase real
estate.
Company-owned homes, such as the units in the Núcleo Urbano
de Carajás might seem like a significant benefit for employees
that are eligible to live in the company town. However, the reality
22
is that employees who live in these company-town homes will
never be able to own the units they live in. They are required to
move out of their homes once their employment is terminated no
matter how long they lived there. Along with their homes, they
often lose their personal networks, their access to the cultural and
sports facilities, etc. Their spouses and children are subject to
similar loss.
From the local community point of view, the lack of tenure
options can also be harmful. From the case studies in this paper,
Carajás is a fitting example. Even though Carajás employees
who live in the Núcleo use services and businesses established in
Parauapebas, more often than not, they do not have any feelings
of ownership or belonging to the city and do not feel compelled
to be participative citizens. In essence, they do not participate
and take responsibility for the city because they do not feel they
are effectively a part of it. In the Núcleo, a similar phenomenon
was observed. Residents seem somewhat indifferent to
community issues. Generally, they do not participate in
decision-making processes related to the administration of the
community, which is controlled by the mining company.
In contrast, only about two hours away from Carajás, the
Sossego Mine employees living in Canaã dos Carajás who were
interviewed during this case study have consistently
demonstrated interest in community issues and in participating in
community-based organisations and programs.
Another important lesson learned regarding tenure is the need to
clearly communicate company intentions regarding housing units.
In the case of the Sossego Mine, miscommunication when housing
units were first allocated caused tremendous dissatisfaction among
employees who did not expect to pay rent or who had invested in
renovations and additions to their housing units.
Quality of life
The foremost issues in workforce housing in poor developing
countries are closely related to quality of life and human rights
issues. In our view, quality of life is founded upon aspects of an
individual’s wellbeing that relate to such factors as work
responsibilities, finances, health, family and social life, and
environmental conditions.
The current rapid growth of global mining development, along
with the crisis in recruitment and retention, justify a clearer
identification of accommodation strategies to improve the quality
of life of the workforce and their families in mining regions.
While subjective aspects of quality of life are complex and
often difficult to measure (Andrews, 1974; Bramston, 2002),
simple yet useful objective quality of life indicators measured at
the community level exist (Arnold, 1983; Barofsky, 2004). It is
paramount that employee accommodation/housing strategies are
based on the respect for basic living needs, such as water and
sanitation infrastructure, tenure and adequate living space. It is
also important that these strategies aim at the quality of life of
the community as a whole and are not limited to providing better
conditions to the mine employees.
CONCLUSION
A diverse range of situational factors need to be carefully
considered early in planning workforce accommodation,
particularly identifying local environmental, socio-economic,
political and security issues; as well as accounting for the mine
longevity, and the workforce size and skills requirements over
the full mine life cycle. Effective planning is dependent upon the
trust and participation of the existing communities in the
projected mine area and forms part of the process to gain a
‘social licence to operate’. Based upon ongoing research as well
as the particular case studies in this paper, the following are
intended to be recommendations aimed to advance the practice
of planning workforce accommodation.
Melbourne, Vic, 16 - 18 October 2006
International Mine Management Conference
MINE ACCOMMODATION STRATEGIES — CASE STUDIES IN DEVELOPING COUNTRIES
General recommendations
Mining operations should ideally aim to enable every employee to
choose where and with whom he/she wishes to reside, and in close
proximity to the mine operation. Accommodation strategies
should be developed with the involvement of all stakeholders,
including mine employees and community members, and reflect
an integrated approach to defining the accommodation strategy.
Mining companies should strive to provide quality
accommodation of reasonable size and with all basic services.
Transparency and clarity are very important. It is crucial that
information on accommodation strategies and benefits is clearly
communicated to employees before they join the operation.
Community-based accommodation
Mines should encourage and facilitate an employee’s ability to
live in a community close to their work. A range of tenure types
should be available to employees including rental, ownership and
shared housing. Options need to include single and family
accommodation. The provision of employee family housing should
be associated with expanded community services and facilities,
including education. The dispersed accommodation strategy should
counteract any potential stigma and better distribute benefits (eg
services and infrastructure) in existing communities. Efforts should
be made to integrate the mine workforce into the local economy and
society. The mine can contribute to the sustainability of the local
community and promote economic diversification to avoid
dependency on its perpetual operation. Planning for the social
impacts of eventual closure also needs to account for workforce
accommodation strategies. It is sensible to monitor and
continuously improve the quality of life in mining communities,
and to strive to account for not only the objective but also the
subjective aspects of quality of life.
Commuter camp accommodation
Mining companies should adopt planning strategies to provide
high quality accommodation (housing-recreational-welfare
infrastructure and practices) in commuter mine camps. There is a
need to continuously monitor quality of life in such remote
camps as a means to identify needs and create/adapt policies and
procedures in the camp. Efforts should be made to include the
workforce in decisions made regarding the facilities, services,
policies and programs of mine camps. It is important to have
enough flexibility in the provision of options for employees with
young families (particularly women) and married/common law
couples in mine camps. Efforts should be made to create and
maintain a ‘sense of community’ in a mine camp and to eliminate
drug or alcohol abuse. It is of utmost importance to create
mechanisms to guarantee that workers in the mine camp are free
from any racial, sexual, religious or social discrimination or
harassment.
ACKNOWLEDGEMENTS
The views expressed in this paper are entirely those of the
authors. The authors wish to acknowledge the support of several
individuals who contributed information, bibliographical data or
mine/community visit facilitation. They also acknowledge the
financial support for the Pierina, Antamina, and Veladero Mines
field visits by the UBC Bridge Fellowship Program
(www.bridge.ubc.ca), Dr M Veiga and the Norman B Keevil
Institute of Mining Engineering, at UBC for the community
research at the Carajás and Sossego Mines.
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