Section 7 Security

1. Section 7 Security Top 1 issue in the areas of concern to stakeholders

2. Background National context Local context insecurity and crime phenomena, offensive behavior pattern of threats and intimidation related to divisions within the community of people for and against the mine • The context of violence,insecurity and conflict pervasive • State is ineffective • Issue of impunity

3. Overview of Security and Policies at the Marlin Mine • Implementing the Voluntary Principleson Security and Human Rights in 2006; • What is it ? • It is a set of international good practice standards that have been developed since 2000 to assist companies, particularly in the extractive industry, in maintaining the safety and security of their operations within a framework that ensures respect for human rights.

4. Voluntary Principles on Security and Human Rights • detailed guidance for companies in three main areas: • identifying human rights and security risks; • engaging with public security forces; • managing private security contractors

5. Overview of Security and Policies at the Marlin Mine • use of private security contractors to protect the right to life and security of the employees; • identification of Stakeholder Concerns, information from stakeholders about the behavior of public security forces andprivate contractorsis not comprehensive; • deterioration of public safety is an additional concern expressed in interviews by a wide range of local stakeholder groups.

6. Public Security Forces Has Montana’s interaction withpublic security forces respected human rights?

7. Public Security forces • relevant human rights: • right to life, liberty and security of the person; • freedomfrom cruel, inhuman and degrading treatment; • rightto peaceful assembly and freedom of association • undertakingin the guidance of the Voluntary Principles: • risk assessments to identify potential risks associated with interaction with public security forces • Promotion of the company’s policies and codes of conduct

8. Public Security forces • Emphasizing respect for human rights and the use of minimum force when interventions are required • Consulting with and disclosing information to the community about the company’s security arrangements • Monitoring and tracking allegations of human rights violations by public security forces

9. Intervention of Public Security Forces in the Blockade at Sololá • Public security Forces intervened to break a 40-day blockade on the Pan-American Highway at Sololá involving the transport of the mine’s ball mill .None of the investigations of the Sololá incident resulted in prosecution of the individuals involved or clarified what happened.

10. Public Security forces • At the time the company had not yet adoptedthe Voluntary Principles, and did not have policies and procedures in place to manage interaction with public security forces from a human rights perspective. • It can be said that Montana is involved in decision that led to human rights being violated,because company was involved in negotiations prior to the government’s decision to intervene according to media and internal reports.

11. Intervention of Public Security Forcesin Social Protests at the Mine • Blockade of the Mine (June 2007)Several complaints were dismissed without further investigation for lack of evidence. • Confrontations About the Mine’s Power Line(January 2008 and June 2008)complaint has not been investigated or satisfactorily resolved. • Confrontation at Coral (June 2009) Several resources reported the company could have avoided the violence by addressing concerns, and that the company had sufficient warning there could be violence. • Three of the four situations ended with criminal chargesagainst community members.

12. Implementation of the Voluntary Principles with Respect to Public Security Forces • Needs for a company to undertake risk assessments: The fact is no external assessment, and internal assessment is on an on-going basis. • Montana succeeded in coordinating human rights trainingwith military and the police.

13. Findings • interventionsof the public security forces have led to allegations related to intimidation or brutality by police and military(could result in a violationof the right to freedom from cruel, unhumanand degrading treatment) • violations by security forces are not effectively investigated or resolved by the state, Montana failed to press the state to investigate the Public Security Forces,(failure to respect human rights and to provide access to remedy) • The company’s inclusion of the Human Rights Ombudsman as observers of police actions is a positivestep toward respecting human rights. • There has been some successin including public security forces in Montana’s human rights training initiatives; however, challenges remain - ?a formal agreement with the police and military about human rights

14. Private security companies „Has Montana’s interaction withprivate security contractors respected human rights?”

16. VoluntaryPrinciples • Implementation of • human rights policies and • use offorce guidelines for private security contractors, and integration of the Voluntary Principles into privatesecurity contracts; • Screeningof private security contractors for past • human rights infringements or • use of excessiveforce, and training on human rights; • Delineation of the role of private security contractorsto defensive functions; • Consultation with stakeholders about private securitycontractors; and • Monitoringand tracking of allegations of humanrights infringements and incidents of use of force.

17. Interactionwith private security contractors • in terms of theprotectionof the mine’s employees; • in terms ofits response to incidentsinvolving private security contractors; • in terms of the implementationofthe Voluntary Principles.

18. 1. Protecting the Safety and Rights of Employees • external threats to employees • kidnapping • shots being fired at buses transporting employees -> injuries; • shots being fired into the minesite at company equipment; • and in armed robberies ofemployees on pay-day. • Psc.’conductis perceived by employees as appropriate in respectingtheir human rights • localresidents from indigenous communities as uniformedguards • hiring of the first female uniformed security guard

19. 2. Incidents Involving Private Security Contractors • March 13,2005 shotingand killing ofa local transportation contractor, during an altercation by an off-duty private security guard • Blockadein 2007 • Power line protestsin2008 • Sipacapa- intimidating behaviourby vehicles • Coralincident

20. 3. Implementation of the Voluntary Principleswith Respect to Private Security Contractors • The 2008 VPassessment found that 75 per cent of guards demonstratedthey understand the basic principles of theproper use of force and the essential security-relatedhuman rights. • Problemsarestillthere: seeConclusion

21. Findings • Significant external threats • Screening and training employees has started + expansion is needed ! • Contractors are conducting themselves appropriately and fulfil their proper functions – Coral incident+ • Reporting+ however: existing gaps – • Regular external assessments of implem. VP + • Consultation mechanisms with the community lacks formality and internal coordination – • Ineffective grievance mechanism –

22. Recommendations • Strengthen internal processes • Ensure independent monitoring • Strengthen follow-up of past incidents • Obtain an agreement with public securityforces. • Continue to screen private guards • Expand human rights training • Engage stakeholders on security issues • Undertake periodic risk and conflict assessments • Continue external reviews

23. Conclusions Implementation of the Voluntary Principles: • has created an appropriate policy framework for duediligence about theinteraction with publicsecurity forces, • and has improved the human rightsperformanceof its private security contractors.” - The implementationhas not beencomplete, significant risks remain -Securityincidents followa pattern related to unresolved grievances • land acquisition • consultation • rightof way agreements, or • the environment and Montana has failed to undertake a serious review ofthese grievances.