Moving Mountains: The case of the Antamina Mining Company
There are two kinds of issues that CMA’s general manager needs to make a final choice and each has different alternatives that would produce distinct costs, implications, and social and environmental challenges for the company running in the Antamina Mining area. The first issue is which type of transportation for concentrate delivery is finally adopted by the company. The second issue is how to relocate residents living in the highland area that would be constructed and operated.
CAM can choose three transportation options. The first is to use the central route that crosses the National Park. The cost of this option is approximately US$ 70 million. Although the cost of this transportation method is the lowest in the three options, the result of taking central route is worst. The World Bank will not give CMA any financial support if the company still insists on using the central route. Moreover, UNESCO, PNH and NGO will not support this plan because of environmental problems.
The second option is to build a new route through the south which might cost US$140 Million. The second one avoids devastating the ecosystem in the national park. However, CMA has to pay extra money for road construction and compensation, and face potential risk of transportation.
The director of Environment, Health and Industrial Security, is worried about the risk of accidents during transportation. Therefore, Samuel raises a third option, which is to build a southern road and a pipeline together, increasing the cost up to US$300 million. Apparently, the third option has the minimum impact to the environment, but there are opinions that oppose his proposal. The main reasons are the huge investment, necessary enormous manag ...