August 17, 2022

Green Mining: The Key to Chile’s Leadership in Global Decarbonization

A well-established concept in Chile is that strengthening global climate action creates an opportunity to position the mining sector as a leader in supplying minerals for the world’s decarbonization. However, this must be green mining, as global green industries will significantly increase their share of mineral demand in the coming decades.

For instance, the International Energy Agency (IEA) estimates that the demand for copper in green industries will rise from 3% in 2020 to 45% by 2040. To be both green and virtuous, mining must minimize its carbon footprint, efficiently manage and reuse water resources, adopt circular economy principles, maintain the highest safety and occupational health standards, and minimize environmental and community impacts. Furthermore, it must foster shared value relationships with local communities by developing local services. A virtuous green mining industry can also drive innovation, boosting a technological services industry that extends beyond Chile’s borders.

Innovation in Mining: A Challenge for Chile

Innovation in mining is primarily driven by technology suppliers from investor countries, and only adopted by large-scale mining once proven internationally. Because of the financial risk associated with innovation, engineering firms do not implement new technologies during feasibility stages, making it difficult for Chile’s strategic program “Alta Ley” to achieve its objectives of developing world-class suppliers.

However, a CORFO-backed initiative promoting pilot testing for mining innovation and local supplier development has revealed an unexpected trend: most pilot tests are linked to mid-sized mining operations, with significant involvement from Chilean suppliers. Additionally, engineering solutions designed for large-scale mining are often not applicable to mid-sized operations, highlighting the need for sector-specific innovation.

Medium-Scale and Small-Scale Mining: A Growth Opportunity

Mid-sized and small-scale mining offers the potential to develop productive, responsible, and circular mining operations that:

  • Accelerate digitalization to enhance safety and operational efficiency.
  • Adopt circular mining practices to minimize waste.
  • Foster the development of Chilean technology providers focused on locally specific challenges.

Importantly, innovations tested in mid-sized mining can be scaled to large-scale mining. Chilean suppliers specializing in mid-sized mining could also tap into markets in Peru and Mexico, serving as an intermediate step before expanding globally.

The Need for a New Roadmap

Just as CORFO funded the development of an innovation roadmap for large-scale mining, it would now be relevant to create a roadmap focused on mid-sized and small-scale mining challenges. This process should involve:

  • Suppliers
  • Pilot testing centers
  • Educational institutions
  • Research centers
  • Venture capital funds
  • Large mining companies, fostering synergies with mid-sized mining in their territories

Chile’s Innovation Ecosystem: A Path to Green and Virtuous Mining

Advancing the development of a robust mining innovation ecosystem presents a unique opportunity to:

  • Build social capital
  • Strengthen sophisticated value chains
  • Position Chile as a leader in green and virtuous mining

By embracing this forward-thinking approach, Chile can lead the transition toward sustainable mining, securing its role as a key supplier of critical minerals for global decarbonization efforts.

Source: La Tercera