When Tahoe Resources Inc.’s Guatemalan subsidiary, Minera San Rafael (MSR), purchased the land to build the Escobal mine in 2010, it offered to let former landowners share in the mining profits once commercial production began.
Each quarter, MSR’s Sharing Value program pays more than 200 former landowners a share of 0.5 percent net smelter return. The program designates ten percent of the 0.5 percent to sustainable development in the San Rafael las Flores municipality, home of the Escobal mine. “MSR’s Sharing Value program is the first program of its kind implemented in Guatemala and one of the few programs that has been put into practice worldwide,” said MSR Communications Manager, Andrés Dávila.
In 2015, MSR paid approximately $1.2 million to former landowners of the Escobal property through the Sharing Value program. Approximately ten percent of that amount was designated for education, health and nutrition projects in San Rafael las Flores. MSR partnered with former landowners to help prioritize and execute social development activities in their local communities using the Sharing Value program funds. For the former landowners’ flagship project, the group used Sharing Value program proceeds of approximately $19,000 to renovate and give medical supplies to the San Rafael las Flores Health Center.
The former landowners’ donation went toward repairing underground drainage pipes, painting walls and remodeling the ceiling of the Health Center. The former landowners also donated needed medical supplies, including blood pressure monitors, nebulizers, centrifuges, an infant incubator and a binocular microscope. “As shareholders of the Escobal mine, the Sharing Value program allows us to positively impact our communities, and we are very proud to share these benefits,” said President of the Association of former Landowners, Jorge Mario Pivaral.