•   8th January
 

“Peru is a must-visit destination for those seeking to gain significant experience in mining exploration”

 

Said Andrés Recalde, member of the Organizing Committee of the 12th International Congress of Prospectors and Explorers (proEXPLO 2021).
 

What do you consider to be the objectives of the 12th Congress of Prospectors and Explorers (proEXPLO 2021)?

I believe that the congress will seek to focus on innovation, exploration success and the optimal transition from exploration to mining.

For my part, I am joining to support the dissemination of technological innovation as well as to highlight the importance of giving a social management approach to innovation in exploration, exploration success and the optimal transition from exploration to mining.

Currently, the primary stages of a mining project's life cycle, i.e. prospecting and exploration, are not exempt from good social management. Thus, for example, in Peru there are already exploration projects with elements of good social management, with local and official social actors such as local or regional governments.

What work is being done at the committee level to achieve these objectives?

For my part, it is to make contacts and attract the interest of exploration companies in Canada -where I currently live and have the opportunity to meet the circle of investors, investment houses, stock market analysts, people from the Toronto Stock Exchange- to see proEXPLO as evidence that Peru is a very large and varied field, with many opportunities to invest in exploration.

What will be the contribution of proEXPLO 2021 to Peruvian and world mining?

Let us remember that Peru, unlike other countries, hosts the majority of the world's most important and commercial metals and they are spread throughout the country; we have a very great mineralogical wealth and this is what is so attractive.

I want to share an anecdote: all the experienced geologists I know have been to Peru and they point out that our country is a must-visit destination for those who are looking for relevant experience in mining exploration. This already tells us enough about how attractive and valuable it is to consider Peru in the experience of geologists; especially for Canadian investment, which represents about 80% of the total world exploration investment.

What takeaway do you want participants to take home at the end of proEXPLO 2021?

The interest of the organizing committee and my commitment to the committee is to encourage people to see that Peru can be highly innovative in exploration and prospecting; we have a lot of professional and technical quality.

A moment ago you mentioned the social management approach. Why is it important in mining projects?

Social management in exploration and prospecting has a very important principle: the mining cycle must start properly in all its aspects: environmental, technological, financial.

However, it is a very risky stage because not all exploration projects result in a commercially important asset; that is, there may be ore but not enough quantity or grade to make the investment attractive.

Then, parallel to that, the image created with that initial contact between the company and the local stakeholders is important; because this image has to represent an industry, not a company. What I mean is that there are professionals who see mining exploration as something that must be done very quickly and it does not matter what people in the local environment say or see. This is a mistake.

My work with Canadian explorers is to make them see that the investment they make, no matter how short or simple, has to be professional and has to give value to the industry's presence; not to the project, which can last 2 weeks, but if in that time many mistakes are made, it will be the industry that will come out badly because the population will no longer regard the industry with favor, it will doubt and that doubt becomes fear and if that fear grows it becomes conflict.

My message is to encourage companies to use the basic principles and methodologies of relationship and social management in such a way that they provide value even though they are only in the area for a short time, but without leaving a bad precedent for the industry.

IIMP puts a lot of emphasis on getting this right and proEXPLO is no exception. We have to incorporate this aspect of social management in order to do this properly, despite its short-term and not being a large investment, but it has to be done correctly. I think it is an important aspect, parallel to good exploration, to technological innovation, parallel to exploration success; parallel to a transition from exploration to mine -which is the most sensitive part- there has to be an adequate handling of social management so that everyone is satisfied with the presence of mining industry.

What Canadian mining experiences do you think can be replicated in Peruvian mining?

I do not think that in terms of technological, financial or environmental management Peru lacks anything compared to Canada. The same regulatory framework that exists in Canada is repeated in all countries, obviously there are nuances of application, of depth. I believe that in Peru we have a good regulatory scheme and although nothing is perfect, it works, and it is possible to start and finish well; there is evidence of that and it is not that our regulatory system hinders everything; it may take time but it is possible to reach an end.

On the other hand, regarding consultation, I think the difference between Canada and Peru is more on the side of community governance. I mean that if there is a consultation process, in Canada the average inhabitant is used to express themselves, there are means to express their will, their preference, and their opinion.

In Peru we are not used to follow a process where people make themselves heard, where their opinion is part of something and, since we feel that there is no Government presence - a phrase that I disagree with -, we resort to pressure, either through a party or using means not covered by the law, and we take that route so that we no longer have a dialogue where everyone benefits, but rather a dialogue where I consider that my message must be obeyed by others; and this is different in Canada.

Let us remember that in Canada we have native and indigenous peoples, who have by regulation, by Canadian law, clear mechanisms of consultation and if that negotiation with an exploration or prospecting company is not in their best interest, they have mechanisms to improve it or to cancel it; but it does not lead to conflicts.

If we review history, it is very rare to find a conflict between a mining company and an indigenous community, because there are mechanisms for dialogue and conciliation that are active and in force if there is the will to benefit both parties.

In Peru we need this democratic interaction, this process of dialogue in which everyone can benefit. We do not have it very mature yet, but we are getting there with the new generations and we can make them see that everyone can benefit.

It must be kept in mind that the ore in the subsoil lacks economic value; therefore, it must be extracted with technology and capital; but the product of that extraction must benefit the greatest number of actors. Now the negotiation mechanisms are flawed, but companies, with the help of the government, have to demonstrate that it is possible to distribute in a way that benefits everyone in a positive way.

 
 
proEXPLO 2021: Mineral Resources for a Sustainable Future
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