Mining companies in Argentina urged to improve community engagement
miningweekly.com
By: Francisca Pouiller
1st May 2009
BUENOS AIRES (miningweekly.com) - Mining and exploration companies with operations in Argentina must put more effort into engaging with, and winning the support of local communities, delegates heard this week at the ArMinera conference and exhibition.
The need for better consultation was repeated through several presentations at the exhibition, which is the largest mining-sector event of its kind in Argentina, and brought together government officials, industry experts and mining companies active in the mineral-rich nation.
“Argentina is ahead of many other countries when it comes to mining sector legislation,” commented World Bank principal mining specialist Craig Andrews.
“But Argentina's challenge in the next three or four years will be dealing with local community issues.”
Unless these problems are addressed early, community opposition could become a big stumbling block for companies wanting to build mines in the South American country.
Recently, the Tilcara community, in the Jujuy province, has demanded that openpit mining activities be halted, while Canadian Yamana Gold has faced local opposition to its Agua Rica project, in the province of Catamarca.
Proper consultation and engagement between mining companies and communities “is essential for the future of the sector in Latin America”, Economic Comission for Latin America and the Caribbean mining sector analyst Eduardo Chaparro.
The so-called “social license” must be as important to companies planning mines as the engineering and financial aspects, said Organismo Latinoamericano de Minería president Aurelio Martinez.
“Hard work, proper analysis and excellent management” are required to gain the support of local communities, he added.
CASE FOR OPTIMISM
Despite the effects of the global economic slowdown, which has led some miners to delay projects and slow investment, the general mood among delegates at ArMinera 2009 was one of determined optimism.
The sector has experienced significant growth in recent years, and a handful of new mines will begin operations this year.
At a lunch on Thursday to close the ArMinera event, Argentina's Secretary of Mining, Jorge Mayoral, said that, from 2003 to the present, investment in the sector had grown by 1 000%, the number of projects grew 900% and exports rose 285%.
Over 200 000 people now work in jobs related to mining, Mayoral said. |
