Q: How can environmental and social regulation in Mexico improve?

JM: Regulation is overly emphasized. Many countries spend a large chunk of their time creating paperwork and complex legal processes that will never be executed. Trust and cooperation should be prioritized. International standards are being brought to Mexico by foreign companies and many of those are of a higher benchmark than those our public institutions adhere to due to their cost-reduction strategies and corporate responsibility obligations. Policymakers can benefit from knowledge in the industry.

Q: In what way does your company help overcome social and environmental challenges?

RU: We help our clients understand and manage social and environmental risks and challenges so they can operate successfully. When it comes to foreign companies, one of their main challenges is understanding Mexico’s local context and legal requirements. Our international and national experts help facilitate understanding and dialogue among large companies and surrounding communities. We strive to promote transparency among these players.

Along with our clients, we prepare Fit for Purpose Strategies that range from engagement, to land acquisition and resettlement processes to environmental impact studies and mine closure plans. Our scope is to help our clients and communities transform challenges into development opportunities. Conflict prevention and resolution is one of our main services. When our clients require support and guidance to improve their stakeholder engagement, we provide support to ramp up sustainable solutions. We work on site, side by side with the communities and client teams.

Q: What are the financial benefits to adopting sustainble practices?

RU: Responsible mining operations comprise transparent and participatory measures. International development organizations such as the World Bank and the International Finance Corporation provide funds for projects. To gain access to finance, a company must comply with standards that have been developed particularly to protect the environment and the communities, and overall the investments. We collaborate with our clients to develop projects according to these standards, so they successfully comply with audits. We also collaborate with financial institutions to perform audits on projects to make sure they are complying with the requirements. Many private financial institutions have become more demanding when it comes to project development and corporate responsibility as a way to protect their capital. Banks often include social aspects in their applications.

Q: What do you foresee for the mining industry regarding social and environmental management and how will ERM participate in this context?

RU: Mining legislation in Mexico and Latin America still has room for improvement, particularly when dealing with foreign investment and protection of the interests of social spheres. International standards and best practices are helpful in these matters because they can serve as guides for project development. It is important to consider the vision of the different stakeholders to generate long-term plans that include different views and interests and to better distribute the benefits of the projects.

Successful projects require the public and private sector to work hand in hand every step of the way and require well-planned strategies followed up with a proper implementation process.

With regards to the mining sector in Mexico, ERM is working on a resettlement process in the state of Sonora, under World Bank and IFC international standards. We have been involved with this initiative for the last three years. We are also developing a strategic planning project for the opening of another mining project in the state of Morelos and working in Guerrero to create a livelihood restoration project and will evaluate how it directly impacts the surrounding community.