“In March, a local statistic suggested that 87% of people would reject the constitutional convention proposal to nationalise mining in Chile, so we believe that sanity is going to triumph, but nothing should be taken for granted.”
What are the vision and mission of the Chilean Mining Chamber?
The Chilean Mining Chamber is an objective pluralist institution that promotes the development of mining and works to establish favorable conditions for both domestic and foreign investment, using technical information to support industry growth. We are involved in the education of professionals, and have created a mediation and litigation center aimed at resolving mining-related problems promptly so that all parties remain in harmony. The Chamber has also contributed to creating the first Chilean institute of space mining, as by 2050 metals will become more scarce on land. In this area we have a competitive advantage because Chile has the six largest astronomical observatories in the world.
What are your views on the proposals made by the Environmental Commission of the Constitutional Convention regarding the nationalization of Chilean mining?
We classify this as an irrational act, and have hardened our speech around this topic. I am going to reference German sociologist, Niklas Luhmann, who suggested that many times a group of people with beliefs and a series of myths or values end up deciding for an entire population in general. Today to speak of a nationalization is to not understand anything about modern mining. The Constitutional Convention and its members lack information and are making irresponsible proposals that would have severe consequences if passed. Fortunately there are two steps left. The second step has to be approved by a 2/3 vote in the full assembly, and if it were to pass, a referendum could still see it rejected by the public.
The mining sector in Chile contributes to 12-15% of GDP, more than half of Chile's exports, more than 1 million direct and indirect jobs, and it has contributed to making Chile the country with the best human development in Latin America. All of that would be put into jeopardy if nationalization occurred. Furthermore, the country would also be involved in a series of international lawsuits, heavy compensation and a huge loss of international image. Finally and most seriously, the country would be impoverished, as removing US$30 to US$40 billion from a country with a GDP of around US$300 billion would be reckless.
Do you think such proposals could be passed considering the make-up of the Chilean congress?
Chile has been by nature a very conservative country, but the current situation calls for attention. Four years ago we would never have thought of electing a 35-year old far left-wing president. Chileans voted for constitutional reform, and it is important those with knowledge speak out to inform a wide audience. In March, a local statistic suggested that 87% of people would reject the constitutional convention proposal, so we believe that sanity is going to triumph, but nothing should be taken for granted.
How can small and medium-scale mining be supported with modern techniques for production, safety and sustainability?
Small-scale mining in Chile is an eternal exploration prospect. Small-scale mining at this time does not receive adequate support, and fees have risen threefold for small miners. In our opinion, ENAMI, Chile’s National Mining Company, needs to be redesigned for modern times. They should have purchasing power for all minerals instead of only copper and gold. Recently there has been talk about a national lithium company, but the truth is that ENAMI could perfectly execute this function with the right investment. The company has become too embroiled with politics, and for many years has seen different governments in power using ENAMI as a political favor without providing funding.
These small companies are an important part of our mining ecosystem. They are the dreamers, those who walk at -15 degrees Celsius in the snow to try and discover new deposits, but they need more support. That is why I have been outspoken in defending small scale mining. With the right financing, small scale mining becomes medium scale mining, and that can grow into large-scale mining.
What can the Chilean mining industry do to attract and train more young professionals?
There was a period in which all the universities and schools of mining and metallurgy were full. Today, that is not the case, and the challenge is to get young people interested in studying careers in mining. Chilean society thinks that mining is a predator of nature, that companies are stealing, because that is the message that reaches them. Because of this stigma, mining ends up hiring a lot of foreigners. To attract young people we must improve the different curricula with state-of-the-art technologies and create research centers so that professionals also have a niche in which to investigate.
It is important that young professionals are trained in artificial intelligence, machine learning, big data and internet of things, because mining is already well down the path of automation and robotization. When the pandemic hit, we managed to maintain or increase production with half the people. Mining is in a process of digital metamorphosis, something which our chamber advocates for and expects to grow.