The Hidden Benefits of Institutional Cooperation

Q: What are the most common noncompliance issues of the industry?

A: The main noncompliance issues that were detected within the industry revolved around a consistent failure to meet the conditions and requirements set up by the environmental impact authorization that SEMARNAT grants before operational start-up. As any other agency, the set of conditions demanded by SEMARNAT are a requirement for players that wish to avoid any type of possible penalty. Companies must assure that they understand their obligations, and should verify the steps that need to be taken in each case. Recently, a greater number of norms and obligations have been added to the list of requirements. The latter implies that industrial activities, unlike other economic activities, need to have a strong grip on their duties and the consequences of noncompliance, not to mention a clear understanding of the benefits that can be reaped from a positive relationship between environmental and economic performance. Many incentives exist with the objective of optimizing the efficiency of productive processes, and the use of natural resources. Green practices tend to be associated with cost reduction, and an excellent public image.

Q: What kinds of programs or actions were implemented as a result of the spill at Buenavista del Cobre?

A: As a result of the accident, a commission was formed to address the different environmental areas that were affected in order to allow authorities to pay closer attention to the issue, and grant a more coordinated follow up.

Furthermore, both local and national academic institutions were involved in drafting a remediation program. The Federal Commission for the Protection against Health Risks (COFEPRIS) was also involved as it implemented health related actions to treat the possible side effects of the contaminated material in water and soil. The National Water Commission (CONAGUA) also played an important role by taking care of the program in charge of monitoring the quality of water meant for human consumption. An order was made to remove more than 6,500m2 of contaminated soil near the origin of the Buenavista accident, authorized by the Attorney General. A site was specially designed to encapsulate the contaminated soil, and ultimately, avoid further contamination to the zone. PROFEPA organized an assessment of all the possible issues that could arise from toxic residues such as atmospheric emissions and environmental impact.

Q: How significant is the promotion of cooperation between institutions, agencies, municipalities and the private sector?

A: Entities should seek to interact with the federation, states, and municipalities to consult on several aspects. All things considered, effective cooperation implies smaller transaction costs for both authorities and regulated sectors as clear and transparent communication regarding industrial obligations are the best way to ensure compliance. Players also benefit from having a thorough understanding of the resulting administrative and legal procedures. Certifications that can be obtained through environmental performance revisions are the most commonly used voluntary mechanisms by players, in which a company’s commitment to comply with all federal, state, and local regulations are reviewed by PROFEPA. The inspections are a way for the agency to not only oversee, but also create superior relationships with businesses, as the certifications and work plans are a nonobligatory way to obtain recognition for going above and beyond standardized regulations. Companies can use PROFEPA’s certifications as a competitive strategy to stand out in the market, both nationally and internationally.

Q: What challenges must PROFEPA and the Mexican mining industry confront in the short and long term?

A: Inspections represent a difficult hurdle for the agency. Even though General Law of Environmental Protection (LGEEPA) clearly defines which types of industries are the responsibility of the General Attorney, the country has almost 200,000 businesses that are subject to a compliance review under the federal environmental legislation. Fortunately, the renovation, growth, evolution, and the increasing sophistication of environmental norms and legislations are taking industrial compliance to another level, while pushing authorities to use sharper monitoring tools.