(The April 17 story was officially corrected after an industry trade group clarified, saying it believed industry had a role to play in the government’s FPIC review process, at paragraph 9)
Ernest Scheider
SANTIAGO (Reuters) – Governments around the world must do more to persuade local communities and indigenous groups to support mines that extract critical minerals needed for the energy transition and the fight against climate change, the head of a prominent industry group said.
Mines around the world are increasingly facing opposition for religious, environmental or other reasons, with pressure appearing to intensify last year after officials in Panama responded to protests by closing a mine that supplies 1% of the world’s mineral reserves .
However, efforts to curb rising global temperatures have led to increased use of solar panels, electric vehicles and other technologies that rely on large amounts of copper, nickel and other important minerals.
If governments are serious about tackling climate change, they should find a way to move some projects forward rather than expecting companies and host communities to negotiate among themselves, Rohitesh Dhawan, director general of the International Mining Council, told Reuters on the sidelines. metals World Copper Conference in Santiago this week.
“Now that we have governments more actively involved in increasing the supply of critical minerals… this comes with a responsibility to help build effective and trusting relationships between the industry and affected communities,” said Dhawan, who joined ICMM in 2021 after quarrying in consulting.
“We cannot have a situation where governments are completely on the sidelines.”
London-based ICMM, whose 24 members, including BHP and Glencore (OTC:), account for about a third of global metals production, is reviewing its policy, first drafted a decade ago, on how miners should interact with indigenous communities, Dhawan said. in what is known as free, prior and informed consent (FPIC).
“There needs to be a rethink and a need for an honest conversation about where does the mine’s responsibility begin and end, and where does the government’s responsibility begin and end?” Dhawan said.
While governments have the primary responsibility for obtaining FPIC, industry has a role to play in supporting this review process, especially when obtaining consent for local mine impacts, Dhawan said.
However, the mining industry does not necessarily have to build a mine if it receives government approval but not local support, he added. “Everyone benefits when we move to a low-carbon economy, but the impacts are always local.”
INDUSTRY LEADERS
Tensions between growing demand for copper and entrenched opposition were a central theme this week at a conference in Santiago that organizers said was attended by more than 500 people.
“Everyone is demanding decarbonization, but what we constantly face is the struggle in every permitting process,” said Roland Harings, CEO of Aurubis, Europe’s largest copper producer.
Executives acknowledged the industry hasn’t always had the best reputation, especially after deadly mining accidents in recent years.
“We need to be able to demonstrate that we will partner with host communities in a more responsible and long-term manner,” said Jonathan Price, CEO of Teck Resources (NYSE:), which operates across the Americas.
This was supported by executives from Codelco, Chile’s state-owned copper giant, as well as BHP and other companies.
“Mining is good for the world, but it needs to be done well,” said Simon Collins of the Australian company. Yug32 (OTC:), which is developing a zinc mine in the United States and has the backing of President Joe Biden’s administration.