In the mining industry, do we give to receive?

from MINERGIA 36 - Febrero 2023

Original invento para tratar las heces de los perros

Let’s talk about environmental reciprocity

Mining is an interesting business in all of its phases -from exploration to exploitation- as well as the stages that follow right up until the minerals are sold. It brings together a staggering variety of professionals from multiple backgrounds, and poses constant challenges, some bigger than others -but challenges nonetheless- because the only thing that’s certain is that no project is identical to another. Every project is unique, as are the ecosystems that they are found in. The truth is that those of us who decide to enter the mining industry have to understand, sooner rather than later, that mining should not only be seen as a business, but rather as a close reciprocal relationship. The constant environmental status quo.

Reciprocity? Yes! Exactly that - reciprocity in the fairest, most environmentally-friendly and humane terms possible; in other words, not limited to the commercial transaction itself. We’re talking about correspondence and even empathy. Just as the earth gives us minerals, those minerals need to provide care to the earth.

The mining business in Ecuador is growing, and has a very promising future. Last year ended with approximately $2.7 billion in exports, thanks to the production of two projects in operation: Fruta del Norte and Mirador. According to a study by the Spurrier Group, which analyzes the 12 most advanced projects, it is estimated that if all of the projects entered into production, this would represent more than $176 billion in exports, more than $44 billion in taxes for the State and more than $21 billion in foreign direct investment in mining over the course of their lifespan. These projections are enormously important to the country and its development, not only because of the tax contributions and the generation of gainful employment, but also because responsible mining work implies a necessary reciprocal relationship with the environment and the community.

These last two stakeholders are fundamental to the process within the mining industry and are a key element in combating illegal and anti-technical practices that, unlike the responsible mining industry, cause catastrophic damage to the ecosystem. As people get to know, understand and embrace responsible mining projects and the richness of their environment in a relationship of equals, they will reject any action that is unfair and harmful to them. However, we must be aware that building this type of relationship requires a strategy and constant efforts that go far beyond regulations and formalities, since simply abiding by the law is not always synonymous with having the permits and the best human relations. We understand that very well in the mining industry.

In many cases, being the best neighbor is the basis for the best project, and that “one extra mile” that the industry needs almost always translates into caring for the environment and implementing measures that promote environmental coexistence. Ecuador is rich in geology, biodiversity and humanity, the three basic ingredients needed to carry out mining projects with reciprocity.

In positive news for the mining industry, President Guillermo Lasso recently declared illegal mining to be a threat to national security. This is highly relevant, since it bolsters support for the formal mining industry, for protecting projects, and for attracting foreign investment. Above all, it is a declaration that protects the environment. Eradicating illegal mining today is the most effective way to protect the ecosystems in a country like ours.

In a world where we are taking hasty steps towards decarbonization and energy transformation for the use of renewable energies, trying to mitigate the effects of climate change with the obligation of leaving an environmentally healthy planet for future generations, it is the responsibility of our formal industry to borrow the minerals that we need from the earth and use them as part of the solution.

Being reciprocal with nature is the secret. The earth gives us the minerals, and the world uses them to alleviate its pollution and eradicate poverty. Mining is not just a business –it is a practice of environmental reciprocity.