Abstract

The transformation in the structure of the world mining industry over the last decade has opened up enormous new regions for mineral exploration and development by transnational mining companies in countries in the South. This new access has inevitably brought mining companies into conflict with local communities. With the involvement of transnational advocacy networks and new global publics, these conflicts have prompted a growing transnational debate on the principles that ought to govern mining and community relationships. One effort to provide guidance on this question comes from the World Bank's Operational Directive 4.30 on Involuntary Resettlement. This paper examines the regulatory impact of this policy upon relationships between mining companies and communities, as well as its "legitimation effect" in providing standards which, once met, can serve to certify a degree of responsible behaviour on the part of the company. The analysis of the effects of the directive is taken up in the form a case study involving a transnational mining company operating in the Andes of Peru and the local communities impacted by its land acquisition project.