As a Brazilian living in Canada and working in the mining sector, I am familiar with several important aspects of Canadian mining operations in Latin America that are sometimes overlooked. Central and South America present distinct challenges and complexities that can be identified and managed throughout a mining project, from exploration to mine closure. Although there are many factors to consider — including regulatory issues, complex systems, corruption and political instability — I will focus on the areas I address daily as a mining consultant: ESG, social licence to operate, Indigenous peoples’ rights and corporate reputation.
First, let’s remember that Latin America brings together strategic countries for mining, with abundant reserves, including their potential in minerals critical to the energy transition. Canadian mining companies are obviously aware of these expansion opportunities and are likely to occupy a prominent place in the future scenario, since Canada is already one of the largest global financial and corporate centres of mining. The major Canadian players listed on the exchanges have operations in countries such as Brazil, Mexico, Ecuador, Peru, Guyana, Chile and Argentina, and numerous junior companies raise investments with new projects in these territories and others.
However, to operate in Latin America successfully, investments, technical excellence and regulatory compliance are not enough. It is necessary that these companies have a deep knowledge of the social and human aspects linked to the business, understanding historical, cultural, social dynamics and, often, conflicts that afflict a large part of the host communities of mining projects, especially in the Andes and Amazon regions.
Social licence is as important as environmental licence
Comparing mining in Canada with Latin American countries, we can highlight some common aspects, such as the relevance of existing projects, because of the large natural reserves, and the experience in dealing with business-sensitive issues, such as Indigenous communities. However, there is a fundamental difference in operations in these countries: Latin America faces important social differences, with unrepaired historical inequalities, tensions related to land issues, intense conflicts related to drug trafficking, illegal logging, and artisanal mining that significantly compromises natural reserves and threatens the lives of Indigenous peoples and local communities. In addition, institutional fragility compromises the execution of projects designed from the point of view of Canadian structures, which are more mature and predictable.
It is a fact that, in Canada, the relationship between mining companies and Indigenous peoples considers formal consultation processes, community benefit agreements, hiring of labour and reconciliation policies. All this in a more stable political environment than in Latin America, where personal and collective interests are often mixed in political, legal and social representation spheres. In the case of the Andes and the Amazon, for many Indigenous peoples, territory does not only represent land or economic asset: it represents identity, ancestry, spirituality and culture. By disrespecting this connection, companies can face embargoes, international repercussions and stoppages.
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