Looking back at the past 20 years, what the mining industry has done well and not so well?

Over the past 20 years, the mining industry has adapted to the reality of decreasing grades by incorporating technologies that have allowed growth in production without significant increases in real cost of commodities for end users. From an exploration perspective, our industry continues to be able to find deposits as market demand shifts. Need lithium, cobalt, graphite, rare earths? No problem – we can find sufficient quantities to meet demand while avoiding significant long-term price increases.

Our industry has come up short in both the perception and reality of its broader role in society. We continue to deal with major tailings dam breaches, destruction of cultural landmarks, and conflict with indigenous and local communities. In our role as convertors of natural wealth to financial wealth, we have yet to shake our image as being part of the problem rather than part of the solution.

What are the greatest challenges the mining industry will face within the next 20 years?

The greatest challenges are in the realm of ESG. Companies are faced with a growing list of challenges to maintain and grow their business: addressing climate change and the use of fossil fuels and water in mining activities; acquiring permits and social licences and establishing stable community relations; addressing social, ethnic and economic inequality in most major mining jurisdictions; and, addressing the concerns of shareholders who are increasingly pushing company management to focus on ESG issues.

How do you see the Peruvian mining industry past performance and future perspectives within the context mentioned above?

The mineral industry in Peru has grown significantly over the past 20 years and should continue to grow over the next 2 decades. While advances have been made on many fronts, the issues of social licence, water, and community relations continue to be flash points. There is no magic solution to these issues and while they vary from project to project both companies and governments must strengthen their commitment to make partners rather than adversaries.

Additionally, the role of small scale mining – particularly in the gold sector – has become significant in terms of domestic production. The formalization process for small scale miners and processors has been haphazard (at best) leading to uncertainty and a large grey area between informal and illegal mining. Again, no magic solution exists but governments need to continue to press ahead with reforms in this area.

Regarding the distribution of exploration and mining investments among the world, what changes do you expect do see within the next decades? Any emerging jurisdiction on your radar or things should be pretty much steady?

The trade-off between preceived geological potential and political risk will continue to determine the level and distribution of exploration expenditures among jurisdictions. As is always the case, a signifcant discovery will draw investment to a jurisdiction in hopes of duplicating success. From a mine development perspective, long lead times mean that most new mines over the next 20 years will be based on deposits already discovered. In that sense, things will not change in any signficant way with respect to emerging jurisdictions.

Do you think this pandemic world will reshape mining industry? How?

COVID-19 has laid bare many of the social and economic inequalities that exist in most countries with respect to access to medical care and support networks. In conjunction with ongoing social movements such as Black Lives Matter and political reform marches in Chile and other countries, this pandemic will lead to change. This can be perceived as a risk or as an opportunity. For the mining industry, the first step is to recognize impending change and to be part of the solution rather than part of the problem.