Casting Alloy: Forging Latin America’s Role in the Energy Transition

To launch the annual Latin America Mining Conference, the welcoming remarks called for a greater focus on the practice of responsible mining. Anglo American is an industry leader in this area, with mines powered by 100% renewable energy.

The first panel of the day focused on policy and investment practices that can promote responsible mining. Panellists highlighted the fact that governments in the region tend to take a larger share of revenue compared to other markets across the globe. It is common to have legal mandates for this revenue to be used for social good, encouraging the creation of opportunities, rather than “taxing destruction”. A good example of this is community farms created in Mendoza, Argentina, using revenue from mining. Speakers noted that this approach can benefit businesses too, as publicly listed companies with robust ESG and environmental credentials tend to perform better.

At the same time, panellists highlighted the need for Latin America to diversify its operations, as the region predominantly specialises in the extraction of minerals and should grow its processing capabilities. In order to enact this change and to unlock the potential profits from the increase in precious metal demands, speakers advocated for mining companies to adopt longer-term growth and stability strategies. Capital in mining tends to be more patient, awarding long-term growth, particularly if those involved can shift focus away from quarterly performances.

The President of the International Copper Association, Juan Ignacio Diaz, joined the conference for a fireside chat in which he explained the crucial role of copper in the technologies of the future. The growth of urbanisation and digitisation promises to only increase the demand for copper worldwide, particularly with the recent boom in data centres. In his role, he promotes, protects, and defends the use of copper globally. The speaker informed the audience that copper is fully recyclable, durable, anti-corrosive, and a fantastic conductor. As a result, 60% of all the copper ever mined is still in use today. Latin America sits on the largest copper reserves in the world, and is responsible for 45% of global production, a number that is likely to grow in the coming years.

The second panel of the day focused on tech, skills and innovation. The speakers started by reflecting on the rapid adoption of AI in the mining industry and gave examples of other important recent technological developments, such as the use of drones to scan entire mines. All of the panellists agreed that further innovation was needed in the industry to attract young talent. The discussion highlighted the need of policy to support innovation, and the lack of an established innovation hub in Latin America. Furthermore, the speakers urged mining companies to make innovation part of their business plan to keep driving them forward.

Effective waste management was another key theme of the conversation. Mines need to align waste with economic and social value; for example, excess sand can be donated to social building projects. Water is a large challenge for mining operations and communities. Mining organisations, the speakers argued, should seize this opportunity to work with local communities to provide water to the region.

Finally, the speakers called for greater collaboration between large companies in the region to fuel innovation and communicate with actors outside of the industry. Through digital collaboration, the industry can find more ways to embody sustainable mining.

The conference ended with a word from the sponsor, Herbert Smith Freehills Kramer. Head of Mining, Greg Mulley, reflected on the abundance of mineral wealth in Latin America and celebrated the region’s supportive policies to unlock this great potential.

Canning House is grateful to all the speakers and partners for this year’s edition of the Latin America Mining Conference.

Event photos