South America - Regional Cooperation for Sustainable Mining in the Andean Countries (MinSus) III

Country / Region: Chile, Peru, Bolivia, Ecuador, Colombia / South America
Topic: Environment / protection of natural resources

Begin of project: October 1, 2016

End of project: March 31, 2024

Status of project: July 29, 2022

Los Rosales - Pilot project for the reprocessing of mining waste in Peru (2021) Source: Jacob Mai, BGR

Mining is one of the most important economic sectors in the Andean region and accounts for a significant share of exports and tax revenues in countries such as Chile, Peru and Bolivia. The other Andean countries Ecuador and Colombia also dispose of rich ore deposits. Their mineral mining on an industrial scale has just begun in recent years, while its relevance for the economic development of these countries is expected to increase in the future.

Andean mining is also of great importance internationally, as it is the origin of many crucial raw materials for the ecological energy transition and digitalization, such as copper, gold, silver and lithium. However, mining in the region is not without controversy, as numerous social conflicts near mining projects have shown in recent decades. Responsible and sustainable mining practices are therefore becoming increasingly important, not only for the population in the producing countries, but also for the buyers of raw materials, such as the German automotive industry. The extraction of mined raw materials in accordance with high environmental and social standards, in conjunction with good mining supervision, can generate investments in other sectors of the economy and contribute to a sustainable development in mining regions.

Positive effects on the economic development due to the production of raw materials can be observed in varying degrees in the individual Andean countries. At the same time, the adverse effects of mining pose a social challenge throughout the region.
Some of the conflicts between the ancestral population of the Andean region and the mining companies have turned violent due to inadequate moderation by the state or inappropriate conflict management measures. Small-scale mining is spreading uncontrollably in certain places, while consuming excessive amounts of water, wood and soil, causing contamination and a shadow economy. A lack of mediation between local residents and the mining industry is leading to the withdrawal of companies in some places, and a lack of knowledge and corruption are hindering the planning processes and monitoring routines of the responsible authorities.

Toxic residues in contaminated sites of former mining operations pose a further threat to the health of local residents and downstream water users. At places, where water and energy are scarce, the overuse of these resources due to inefficient practices, may even threaten the functioning of local economies.

Auditing of international sustainability criteria (2022) Source: Jacob Mai, BGR

Each individual partner country and each branch of the extractive sector uses different methods to overcome the difficulties described. In many countries, successful "best practices" have already been developed, such as for water and energy efficiency in mining processes. However, these are not yet well known in the region. In addition, some countries show great progress in environmental legislation in the mining sector. This relates to new and operating mines, as well as post-mining regulations. Cooperation to share experiences between countries can help to solve problems or make known proven approaches.

The current project builds on two predecessor projects, funded by the German Federal Ministry for Economic Cooperation and Development (BMZ) since 2016. The regional partner is the United Nations Economic Commission for Latin America and the Caribbean (ECLAC). The project's national partner institutions include ministries of environment and mining, other governmental regulatory and permitting agencies, geological services, mining industry associations, and non-governmental organizations from civil society.

The project contributes to the sustainable governance of the mining sector in the Andean region within the following topics:

1. Establishment of international sustainability standards in the production of mineral raw materials as a basis for responsible supply chains. High environmental and social standards as well as good corporate governance and transparency are key elements for responsible mining. For example, the use of innovative and environmentally friendly technologies can prevent pollution and health hazards. Increasing efficiency in the area of water and energy consumption, as well as the use of regenerative energy sources, can reduce the environmental impact of mining to a minimum and contribute to greater climate protection.

2. Developing solutions for sustainable mine closure and the management of mining legacies. Through the exchange of regional and international experience and specific training, project countries are supported in implementing effective mine closure legislation. Furthermore, pilot projects are testing whether valuable ingredients, e.g. precious metals, can be recovered from toxic mining waste. In addition to positive effects for the population and the environment, the reprocessing of environmental waste could also contribute to the financing of remediation, for which there is often insufficient public funding.

3. Creating structures for regional cooperation, coordination and communication between national stakeholders. For this purpose, existing networks are fostered and new exchange platforms are created. The professional training of partners on sustainability issues in mining in national and regional formats is also a key instrument of the project.

The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) also contributes to MinSus’ aims with a GIZ-MinSus project which collaborates closely with our BGR project.

Detailed information on the project components of BGR and GIZ is available on the joint project homepage www.minsus.net

Additional Project Information:

• Info-Sheet MinSus/BGR (2022, English and Spanish)
• GIZ-BGR Factsheet MinSus (2022, English)
• GIZ-BGR Factsheet MinSus (2022, Spanish)
• Video: Presentation MinSus Project GIZ/BGR (2020, spanisch)
• Publications by BGR and partner institutions from the MinSus project (English and Spanish)
• Infographic: Commodity Production Andean Countries (2019, Spanish)
• https://minsus.net/infografias/
• Video: BGR Pilot Project – Reprocessing of old Mine Tailings (2022, Spanish, English subtitles)
• Video: BGR Pilot Project - Alumina Remediation in La Ciénega/Peru (2020, Spanish)
  

Partner:

Regional: United Nations Economic Commission for Latin America and the Caribbean (ECLAC, Spanish: CEPAL)

Local: environment and mining ministries (e.g. MINEM, MINAM, MinEnergia, MinAmbiente, MERNNR, MinAmbiente EC), regulatory and permitting agencies (ANLA, SENACE), geological services (e.g. INGEMMET, IIGE, SERNAGEOMIN), universities (e.g. PUCP, CEMS), mining associations (e.g. SONAMI, SNMPE), NGOs (e.g. NRGI, CooperAcción), networks (OLAMI, ReLASC, ASGMI).