CHAPTER 6

Our communities

We highlight the progress of our communities in basic services, entrepreneurial development, and the improvement of conditions in the agricultural production base, under the strict fulfillment of our agreements and conventions.

Area of Influence

The direct area of influence of our operations is comprised of four communities, and the indirect area of influence is comprised of eight communities along the main road between Uyuni and Abaroa and the railway we use to transport materials, inputs and concentrates.
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The native indigenous population living in these communities is part of the Centrales Únicas Provinciales de Comunidades Originarias de Nor Lípez and Enrique Baldivieso as an indigenous territory, Territorio Indígena Originario Campesino (TIOC). Our company complies with Bolivian legislation regarding the rights of Indigenous Peoples, as well as international treaties, guidelines and principles related to mining activities. In 2023 there were no cases of violation of the rights of indigenous people.

Community
investment

We increased investment in technical assistance in 2023, conducting a Social License to Operate study with an international expert and supporting the Los Lípez San Cristóbal Advisory Council in planning workshops and other operational expenses.

We allocated more resources to the social program to support vulnerable groups, prepare young people for employability and leadership, and increased counterpart resources in social investment plans and environmental projects in communities.

Social Project

In accordance with the recommendations of the social closure plan and related international standards, we continue our social work within the framework of the 2020–2024 five-year plan, which consists of the following programs:

Social License to
Operate (SLO)

We continued measuring the Social License to Operate (SLO). This year's average rating was 3.73. This indicates that we surpassed the established goal of 3.50, meaning we maintain the level of "tolerance" with our stakeholders.

Compared to the previous year's average SLO of 3.55, there was an increase in value due to significant events that occurred. Among these were the connection to the Lípez I rural energy network by the communities of San Cristóbal and Culpina K, and the fulfillment of six agreements signed between MSC and local/institutional authorities at the local and regional levels.

Current status of compliance with agreements

The progress in fulfilling agreements and conventions in 2023 reached 91.37%, representing a 5.17% increase compared to 2022, due to the fulfillment of six agreements, which are:

Agreement signed between MSC and the authorities of the San Cristóbal community for support in water and sewer management.

Agreement signed between MSC and the authorities of the San Cristóbal community for the improvement of primary education services.

Agreement signed between MSC and the authorities of the San Cristóbal community for the strengthening of secondary education services.

Memorandum of understanding between MSC and the authorities of the San Cristóbal community for the connection to the Lípez I rural electrical network.

Agreement signed between MSC and the authorities of the Río Grande community for the improvement of educational services.

Cooperation agreement signed between MSC and the authorities of the Río Grande community.

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