Fewer Latin Americans see mining as positive - survey

The number of people in Latin America who perceive mining as positive continued to decline this year, according to the third Brújula Minera LATAM survey, which was presented at the Latin American Mining Meeting 2023 in Panama City.

The study coordinated by Jaime Arteaga y Asociados (JA&A) involved a sample of 7,852 people in 10 countries in the region: Chile, Peru, Bolivia, Colombia, Mexico, Brazil, Argentina, Ecuador, and this year for the first time, Panama and Guatemala.

Overall, the percentage of respondents who consider that mining is positive for their country fell to 63% from 65% in 2022, while in 2021 the figure was 68%, Jaime Arteaga, general director of JA&A, showed in the presentation.

In Peru the proportion of respondents who perceive mining as positive dropped to 77% from 79%; in Mexico it fell to 64% from 68%; in Brazil to 55% from 58%; in Argentina to 45% from 48%; and in Ecuador to 44% versus 52% in the previous study.

However, in Chile the percentage rose to 80% from 79%, while in Bolivia it increased to 77% from 74% and in Colombia it was up to 70% from 66% last year.

“What we see is that we’re losing space at the Latin American level. Let's say, globally, when we take all the results from Latin America, fewer people consider that mining is positive for their country year after year,” said Arteaga.

However, the consultant added that this can be reversed, and in fact has been in Colombia in the last five years, because the survey shows that many Latin Americans see mining as necessary for modern life and something that can benefit the economy and communities directly.

“There are half of the people who say, well, the economy of my country would be worse off if mining operations stopped. This is more notable in countries with a high presence of mining activity such as Chile, Peru, Colombia and Mexico,” said Arteaga.

The study also showed that the percentage of Latin Americans consulted in each country who agree that it is possible for mining to benefit communities is higher. Colombia, Peru and Bolivia stood out with 84%; followed by Panama and Chile (83%); Guatemala (79%) and Mexico (75%).

Arteaga said there is a big opportunity to build public opinion in countries such as Brazil, Argentina, Ecuador and Mexico, where a high percentage of respondents answered "don't know, no response."

CONCERNS

The third edition of Brújula Minera LATAM revealed that for Latin Americans, the mining sector is the one that most affects the environment.

“When I ask which of the following sectors you think is the one that most affects the environment, it is neither the rancher nor the agricultural sector. It is mining, followed by far by oil and followed by far by industry,” said Arteaga.

The other big concern that the survey revealed is that there is a lack of trust. “What I think of mining is one thing and what I think of the person who exercises it or who controls it is another, and the confidence of both has to be high: the confidence of the person who controls mining has to be high and the confidence in those who do mining, it has to be high,” added the consultant.

Arteaga said the key to generating trust is related to social conflicts, which he describes as "the highest risk that this sector has."

Conflicts have increased in the region and the main reason is that people perceive that there are organizations that want to take political and economic advantage, said the JA&A director.

“Mining has been a political issue for some time now. Mining is a matter of political debate that has nothing to do with whether it is a movement, right-wing or left-wing,” said Arteaga.

For this reason, the consultant recommends that mining companies show that they are empathetic with the communities and society in general. “People are not asking us how much money they’re going to give us, people are not asking us how many jobs they’re going to generate. What people are asking us is, are you going to take care of me? To the extent that we’re able to answer that question, we will achieve the social license.”