Minera Cuzcatlán Maintains Open Dialogue with Communities

Compañía Minera Cuzcatlán, the Mexican Subsidiary of Fortuna Silver Mines, said that it maintains a permanent dialogue with the neighboring communities of the Valle de Ocotlan, located in the region of Valles Centrales of Oaxaca. The company does so through its human rights policy and community procedures.

The company reported that the approach toward different communities has been guided by Mexican regulation. The relationship is based on respect for the traditions and culture of the local population. Compañia Minera Cuzcatlán emphasizes it operates with the consent of authorities, social groups and citizens.

“In my 16 years of working in Mexico, and especially the last three years, I have seen the accelerated evolution of the mining sector to operate under ambitious standards of sustainability, integrating communities, promoting respect for the environment and properly accepting and interpreting the uses and customs of the populations where they work. This is necessary to maximize the available resources of the valuable human capital where it operates,” wrote Luiz Camargo, Country Head, Compañía Minera Cuzcatlán for MBN.

The company’s approach led to several agreements that enabled it to deploy resources for the communities. Compañía Minera Cuzcatlán released this statement after an organization called Front No to Mining proclaimed that the company has “covertly barged in on” the territories of Magdalena Octlan, Monte del Toro and San Martin de los Cansecos, offering houses to citizens.

With this irruption, the communities that make up the organization said that the company is defying the decision of local assemblies, which had established the territory is not fit for mining. This violates the right to self-determination of communities, said Front No to Mining.

In response, Minera Cuzcatlán pointed out that the contract it has established with the local communities is nothing new, having existed for over 15 years, when the San Jose project began. Moreover, the company expressed its respect for opposing opinions and said it keeps an open-door policy with the neighboring communities so that it can clarify any concerns about its mining activities.

Jorge Ganoza, President and CEO, Fortuna Silver Mines recognized the efforts made by partners of the company to obtain certifications, which are in line with the company's values to respect communities, acting as strategic partners to help them in their development and environmental preservation.

Eusebio García, Deputy Minister of Industry and Innovation, Oaxaca’s Ministry of Economy, acknowledged the importance of the company to the state and lauded its environmental and social efforts, which García considers to have a positive impact on the state’s jobs and productivity.

Minera Cuzcatlán has been recognized for its environmental and social efforts in the past: in December 2021, MBN reported that the company ranked among the 500 most important companies that fight corruption in the Corporate Integrity Index (IC500). Minera Cuzcatlán said the index was of great importance, since ethics and integrity are a benefit for both its own workers and surrounding communities.