The community and employee relations programs of CMSJ are being designed to promote our commitment and recognition that our activities must contribute to the long-term prosperity of our immediate environment as well as respect for the culture, traditions, and values of the community.

To achieve this, we are developing a tri-part approach where company, employees, and the surrounding communities share responsibilities and benefit directly from their mutual involvement and cooperation.

CMSJ's three prong approach involves:

1. The creation of a modern, hands-on employee relations focus;
2. Formation of the Junta de Fomento - an organization to foster employee identification and long-term sustainable integration;
3. Creation of a non-profit association – Association Pro-Investment of Huarochari - as a conduit for community support and assistance.

The employment of over 550 workers is an immediately evident and positive contribution to the revitalization of the community of San Mateo and adjacent communities. Over 70% of the people employed are from the local province. The indirect impact of third party services that provide support to the mining operations – transportation, commerce, services, and the like, will create hundreds of additional jobs, many from within the adjacent community.

The serious lack of experience and employable skills among the local populace has led the company to develop comprehensive training programs so that over time, local people will have the necessary employable skills. It is expected that in the first year alone, over 80 people will be trained in formal programs at Company's expense.

Following a blue print of success in other countries where this concept has been implemented, The Company is organizing in Peru the first project of its kind.

The "Junta de Fomento" is legally structured as a cooperative with a commercial orientation; its principle concepts are:

1. Every employee from the general manager to entry laborer has the equal right to be a member.
2. Each worker will have the equal opportunity to contribute personal funds by payroll deduction to the “fund”. The company will match these funds to a pre-determined limit.
3. While the company will provide oversight, the junta will have an independent management and committees elected by the membership will govern its day to day operation.
4. The funds of the junta will be invested in projects that will return dividends to the workers. Investments will prioritize projects that are income producing and preferably associated with ancillary support of the mining operations.
5. Social programs directly contributing to the employee, family, and community, will be an essential component of the junta’s organization.

The community programs are focused on a concept of "good neighbor" recognizing the importance of a close and harmonious relationship.

First and foremost, is the company's recognition that the people of the community must benefit by the operations of the mining company. Consequently, the company has formally committed to the most adjacent communities of Viso, San Antonio, Mayoc, and San Mateo, to give preferential consideration in hiring and training.

To further support the long-term progress and development of the immediate communities, CMSJ is forming a non-profit organization – "Association Pro-Investment of Huarochari" - to channel assistance and funding for worthy projects of community interest and need. This fund will be financially supported by CMSJ and a portion of annual profits will be donated for its operation.

The association will have a steering committee made up of community leaders who will prioritize the projects to be undertaken.

Projects will be focused on health, education, community projects, and related activities.

Some of the immediate projects that will be supported by the association and CMSJ:

1. Water project of the community of Viso – a 5 km irrigation project for crop creation in the altiplano;
2. Restoration of historic buildings (in Viso) recognized as national patrimony;
3. Development of feasibility study of tourist center and trout farm (San Antonio);
4. Development and improvement of medical outposts serving the highland communities;
5. Support and assistance to implementation of community medical center in San Mateo
6. Eradication of illiteracy among workers and immediate family
7. Pre-school health care for local community children
8. Active participation in rehabilitation of local churches, community centers, and public recreation facilities.