Partnerships for Sustainability in Mining

in partnership with

Download our programme

including our full agenda and speaker bios 

Mining is an essential part of the Global Solution to climate change. If global emissions are to reach Net Zero by 2050, in accordance with the Paris Agreement, a rapid expansion of cleaner energy technologies and electromobility is needed. Critical minerals, also known as ‘future facing commodities’, which were not widely used in the past, are now assuming a pivotal role in the global energy transition. Surging demands are largely driven by electric car sales which experienced a record-breaking year in 2022- with sales exceeding 10 million worldwide- and there is a predicted 35% year-on-year increase by the end of 2023, according to the International Energy Agency.

Latin America is well poised to capitalise on the critical minerals demand boom, given its existing production levels and its global share of reserves of the four critical minerals: copper, lithium, nickel, and cobalt. Chile, Peru, and Mexico hold an estimated 40% of global copper reserves, with additional reserves found in Argentina, Brazil, Colombia, and Ecuador. Latin America is home to around two thirds of the world’s lithium reserves, which are primarily found in Bolivia, Argentina, and Chile; although Mexico, Peru, and Brazil hold smaller shares and host some exploration projects. The region also boasts some significant nickel reserves: Brazil hosts 17% of global nickel reserves and additional reserves are situated in Colombia and Cuba. It is Latin America’s lithium, copper, nickel, graphite, and rare earths that will facilitate the development of solar panels, wind turbines, EV batteries, and a plethora of other technologies needed for a greener future.

Given this context, this conference organised by Canning House, in partnership with Anglo-American, seeks to explore emerging mining practices in Latin America that reflect on social, environmental, and governance innovation through multi-stakeholder partnerships. Join us as we look to answer: How can the mining sector partner with local actors to better guarantee benefit to host communities and countries where they operate, and take advantage of the energy transition?

Learn more

In Latin America, mining is a key driver of economic development, contributing around 10% of the total GDP of Peru and Chile. The industry accounts for two-thirds of Peru’s export value and copper alone constitutes 56% of Chile’s total exports. Despite these sizable macroeconomic figures, demands exceed Latin America’s current supply capacity. The global demand for copper alone is expected to roughly double by 2040; demand for nickel and cobalt will increase at least sixfold; and lithium consumption could reach forty times what we use today, according to the International Energy Agency. The expansion of Latin America’s critical mineral potential rests on the urgent need for additional investment. Chile needs US$150 billion in additional investment in order to double copper output by 2050, while Peru is seeking another US$54 billion for over 100 projects to develop deposits of copper and lithium, among other minerals. Beyond attracting funding, corporate stakeholders and governments must ensure that private investment flows are aligned with Sustainable Development Goals (SDGs).

A just energy transition cannot occur without mining. The key question, rather, is how can mining operations be aligned with sustainability. The world today demands a responsible and well-regulated mining sector defined by the objective of propelling socioeconomic growth, while mitigating social and environmental risks. Fortunately, Latin American countries have comparatively strong natural resource governance compared to other resource-rich countries worldwide. Both Colombia and Peru’s mining sectors achieved the highest category, scoring 75, on the most recent 2021 Resource Governance Index by the Natural Resource Governance Institute. However, robust governance must be aligned with positive outcomes on the ground. Producers must, therefore, ensure transparency through the production of comprehensive and social governance reports. Technologies also propose solutions to key environmental concerns. Notably, the production of minerals and metals itself accounts for around 16% of global greenhouse gas emissions, according to the OECD (2019). Modern mines, therefore, are transitioning towards renewable energy to power their operations. Moreover, copper and lithium mining is particularly water-intensive and water stress may intensify with climate change. Potential solutions include minimising water use and developing water treatment technologies to return the water safe for human use.

Sustainable mining is also underpinned by collaborative partnerships. UN SDG No.17 highlights the role of the private sector, alongside governments and civil society, in forging ‘the global partnership for sustainable development’. In the mining industry, dialogues must be opened with the multiple stakeholders including mining companies, host communities, local and international governments, the finance industry, the energy sector, and environmentalists. Such dialogues may be framed around the following questions: How can increasing revenues from critical resources be accountably aligned with citizen priorities? How can mining companies fulfil their social responsibility to ensure that the benefits and community development extend beyond the useful life of the mine? How can mining companies improve their water resource and waste management and navigate their impact on downstream industries such as agriculture? How can such partnerships provide support and knowledge to mining companies, often working in remote areas?

Questions?

Please contact us with any questions about this event.

See our Events Terms & Conditions.