VIEW FROM THE TOP |
NEW MODELS BASED ON INDUSTRY BEST PRACTICES FRANCISCO QUIROGA Undersecretary of Mining at the Ministry of Economy
Q: What is the strategy of the Undersecretariat of Mining for
Q: What is your opinion on including indigenous
strengthening the mining sector’s competitiveness?
consultations in the regulatory framework?
A: We will implement an active industrial policy that
A: This is a commitment which implementation Mexico
integrates the perspective of each of the actors in our sector,
has been delaying for years. It is no longer possible to
providing certainty to investors. The main guidelines are
keep procrastinating on this. The current government
innovation, diversification and inclusion. To this end, there are
will implement indigenous consultations and will do so
three important approaches. First, carrying out business in a
following the highest standards. We will have effective,
right way. Second, fostering the industry’s competitiveness
fast and well-designed consultations, fiscal compliance,
by reducing costs. Three, reconfiguring the role of authority.
remediation of the effects of mining activities and respect
We have to implement new models based on industry best
for the human and political rights of workers. More
practices that underscore inclusion and sustainability.
generally, it is crucial to include host communities in the project, whether they are indigenous or not. We have to
As for the industry’s competitiveness, we must tackle all those
involve the communities, make them part of the process
cost factors that can be lessened without impacting Mexico’s
and integrate them into supply chains and to the mining
development. And regarding the role of the authority, we
activity itself, if possible. When one does that, everything
see ourselves as leaders of the sector, with all the risks and
else is facilitated. Community participation is part of
costs this implies. Our goal is to reverse the current trend
our way of understanding the regulatory framework. To
we observe in the sector. One of our recent achievements
increase Mexico’s competitiveness while protecting the
is that during 1H19 we reduced the delay in the procedures
wellbeing of all stakeholders, every industry-member
of the Public Mining Registry by 95 percent. Although we
has to work in harmony with each other. That is a joint
received a large amount of unresolved applications from
responsibility, but it starts with the Undersecretariat
the previous administration, 63.5 percent of the current
of Mining.
resolutions correspond to 2H18. Q: What strategy should be implemented to improve the Q: How can the way of doing business in mining be reformed
public perception of mining?
to benefit all stakeholders?
A: As an industry, we need to stop talking to each other
A: It is of the utmost importance to clearly distinguish three
and start communicating with the public at large. In the
aspects. One, that to which each stakeholder is entitled.
13 years since Pasta de Conchos, our industry has evolved
Two, what we really want to achieve as an industry, which
considerably. We must step out of our comfort zone and
in turn demands that each stakeholder go beyond what
convince others of the fact that mining is fundamental for
he is entitled to. Three, that which is non-negotiable. For
the development of Mexico’s economy. Investing in state-
instance, human life is non-negotiable. I am convinced that
of-the-art technology, environmental protection programs
mining does not have to cost a single human life. Another
and better social practices, as well as procuring strong
non-negotiable aspect is natural disasters. To put it in stark
supply chains, is crucial to this end. We have to construct
terms, Mexican mining, given the current perception of the
a legacy in line with that of the new administration by
industry among some segments of the public, would not
building citizenship and aiding in pacifying the country.
survive a disaster like the one that happened in Brazil at the beginning of 2019. And I would like to note that naming them “natural” is just a figure of speech because there really
Francisco Quiroga has more than 18 years of experience in
is no such thing as a natural disaster in mining. The third
relation to the mining industry. He has a background in directive
non-negotiable aspect has to do with the manner in which
positions in several mining-metallurgical companies. Quiroga
stakeholders, including the authorities, relate to each other.
has degrees from Nuevo Leon, Yale and Auckland universities
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