Responsible Mining for a New World

Humanity can no longer conceive of life without technology. At every moment of our lives, a technological solution accompanies us. In New Zealand, we have focused on ensuring that this technology is centered on making things easier for people so that we have time to focus on what matters most: family and friends 

This objective becomes even more relevant in industries as complex and demanding as mining.

In late October, the mining sector will gather in Acapulco as part of the XXXV International Mining Convention 2023, and at NZTE, we are preparing to attend. New Zealand and its companies will participate with a booth for the first time at the fair, and it's not for nothing that New Zealand companies have earned a reputation for providing cutting-edge technology solutions that are safe, reliable, and generate operational savings. But above all, these are solutions with the ultimate goal of caring for people and their environment in all sectors.

Among them, we have Tait, with its end-to-end mission-critical communication systems based on safety; Framecad, with its modular construction technology using manufacturing equipment and patented software; Enex, with its sophisticated rescue cameras for underground mining, and portable toilets for mining.

There is also Seequent, with software that maps the subsurface for construction or mining projects; Loadscan, with its advanced scanning system; and RockLabs, the leading provider of crushers, pulverizers, sample dividers, and certified reference materials for the extraction of gold, silver, platinum, iron, and palladium. 

Other New Zealand companies focused on mining solutions include JRG Energy, with its consulting and engineering services for the energy sector and geothermal services, as well as Zelandez, whose technologies for lithium extraction, exploration, and production lead the market.

 As I prepare to participate in the event and carefully read this year's theme, "Mining for a New World," I couldn't help but reflect on the importance of having technology as an ally to precisely envision the potential of the mining industry with this new focus.

 But what is this new mining world like?

In an increasingly climate-conscious world, mining plays a crucial role in the production of many modern products to meet the needs of green energy.  According to the European Commission, the demand for rare earth elements for electric cars and wind turbines, among other things, is expected to increase more than fivefold by 2030.  

However, this increase in mineral extraction poses environmental and social challenges that must be addressed responsibly. Modern and responsible mining, when carried out to rigorous standards, can have a positive impact on the environment and local communities. Mining companies invest millions of dollars in restoring affected areas and preserving biodiversity. In addition, mining provides employment and training for thousands of skilled workers, thus contributing to economic development and job creation.

The challenge lies in ensuring that this expansion of mining is managed responsibly and sustainably. Good governance is essential to prevent corruption, harmful environmental impacts, and conflicts.

In New Zealand, the Extractive Industries Transparency Initiative (EITI) plays a crucial role in promoting good governance in the oil, gas, and mining sectors. Helen Clark, chair of the EITI board, highlights the importance of good governance in the transition to cleaner energy.

This approach to mining for a new world also involves an energy transition and the search for more minerals as a result of it. Josie Vidal, CEO of Straterra, has commented that mining companies in New Zealand invest each year on planting native species, ensuring the health of waterways, and controlling pests and predators, both while the mines  are in operation and after they are closed. Regulations require them to return mine sites to standards equivalent to before mining began to manage environmental impacts.

I am proud to say that there are already case studies on this matter, such as the Waihi North Project, Ravensdown's Supreme Lime quarries, Pukekawa quarry, Macraes Gold mine, and Stockton mine. The latter is one of New Zealand's largest mines and is now the scene of a major site rehabilitation into indigenous subalpine shrubland typical of the West Coast plateau landscape. Success stems from more than a decade of research into optimum growth medium and planting methods.

 The Latin American Potential

Latin America, with its abundance of minerals, has the opportunity to develop a critical minerals market. In fact, seven of the world's Top 10 most prolific copper mines are located in Latin America. Chile, Peru, and Mexico alone control 36.4% of the world's copper reserves and account for 40.8% of global copper production. Properly developing a critical minerals market will help the economies of Chile, Mexico, Argentina, Peru, and others, and accelerate the world's transition to a green economy.

However, it must be done in a way that encourages foreign investment, preserves regional self-sufficiency, and respects the rights of local communities.

According to data from the 2019 Economic Census conducted by INEGI, 6.76% of large companies in the mining industry incurred expenses for environmental protection, with a focus on hiring consultants and external services (MX$152 million (US$8.7 million)), reducing energy consumption (MX$113 million (US$6.5 million)), and reducing emissions to the atmosphere (MX$66.7 million (US$3.8 million)). 

In its recently released 2023 Sustainability Report, the Mexican Mining Chamber (CAMIMEX) highlights that the mining and metallurgical sector contributed 2.46% to national GDP in 2022. Considering the entire mining value chain, this contribution represented 4.3% of GDP. 

Mining is a key sector for Mexico's economy and sustainable future, and it is a pillar for the well-being and development of 696 communities located in 212 municipalities across the country.

In 2022, five minerals accounted for 86.3% of the total national mining and metallurgical production. These are gold (30.6%), copper (27.2%), silver (17.6%), zinc (7.1%), and iron pellets (3.8%). 

The document notes that mining companies, aware of their responsibility to society, have strengthened their ties with the communities hosting their operations. In addition to generating employment and economic benefits, responsible mining promotes initiatives that enhance the well-being and active participation of local populations. This active collaboration between companies and communities is a tangible manifestation of the industry's commitment to comprehensive sustainability. 

All of this data reflects that Mexican mining is already focused on this new world, and I am confident that in Acapulco, we will learn more about responsible mining, which is an essential component of the transition to a green economy. To achieve net-zero emissions goals, we must rely on science, data, technology, and human ingenuity. This requires an enabling approach that allows mining to make a positive contribution to a sustainable future. 

In summary, responsible mining is essential to ensure the supply of the necessary minerals in the transition to a greener economy. We must find a balance between the growing demand for minerals and the preservation of the environment and the well-being of local communities. In doing so, we can seize the economic and technological opportunities that mining offers and contribute to progress toward a more sustainable future.

On this journey, countries with a strong mining tradition like Mexico and New Zealand are advancing hand in hand, exchanging experiences, knowledge, and technological solutions.