The transformation of mining in Latin America: the role of multi-stakeholder dialoguector
Mario Huapaya y Mario Picón
The extractive industries, and especially mining in Latin America, are undergoing a profound transformation. Increasingly prevalent territorial development approaches, as well as pressure from investors, communities and regulators, have changed the rules of the game, demanding an end to the solitary and disjointed mining of the past. Mining companies can no longer operate in isolation; they need to actively participate in multi-stakeholder dialogues. Those who are not at the discussion table run the risk of becoming part of the "menu" of decisions and commitments made without their participation.
Traditionally, many mining companies have approached social management from a transactional approach: obtaining permits, complying with requirements, paying their taxes and developing positive social impact projects in isolation, and focused on the immediate area of influence. However, this model has been exhausted. Today, the sustainability of the industry depends on its ability to build consensus and coalitions for development with multiple stakeholders, from governments and communities to investors, academia and civil society organizations.
In Latin America, social conflicts associated with mining have shown that the lack of consensus and positive impact on territorial development can paralyze projects for years, generate significant cost overruns and irreversibly damage the reputation of companies. Cases such as Conga in Peru or the opposition to projects in Panama and Argentina illustrate how the absence of effective participatory processes can translate into insurmountable barriers to mining operations. The concept of a "social license to operate" is no longer sufficient. Social sustainability requires a structural transformation in the way companies interact with their environment.
But participatory processes also need to improve and generate collaboration between actors in the implementation, not just the conception, of a vision for development in mining areas. Otherwise, a dependence on mining and mining companies operating at the local level may be generated, which does not favor a vision for future development. In this sense, initiatives such as the Governance Action Hub and Andean Link Engagement – ALE propose an innovative approach to strengthening local and global coalitions to improve governance and reduce corruption in resource-rich countries.
In the Peruvian context, for example, with the participation of the Inter-American Development Bank, the Swedish International Industry Council (NIR) and mining companies with high standards such as Anglo American and Newmont, regional development models are being implemented in Cajamarca and Moquegua. These initiatives integrate civil society, government and the private sector in territorial development strategies. This approach is key to positively transforming mining regions and ensuring that the benefits of extractive activity are sustainable and equitable.
For its part, the Peruvian State has made significant efforts to convene dialogue and consensus since the multi-stakeholder preparation of the Vision for Mining to 2030, resulting from the RIMAY process, which led to the Cajamarca and Moquegua processes also accompanied by the Ministry of Energy and Mines, and more recently with the start of the expected participatory design process of the National Multisectoral Mining Policy to 2050.
Being at the table is a necessity, not an option
Mining in Latin America is at an inflection point. Social pressure, the upcoming over-demand for critical minerals and regulatory innovations are forcing companies to change the way they operate and relate to their environment. In this context, actively participating in multi-stakeholder dialogue spaces is not only a risk mitigation strategy, but a necessary condition for the sustainability and success of the sector and subsequently for the development of mining regions.
If mining companies want to successfully adapt to the new reality, they will have to improve their long-term relationship building practices, genuinely betting on building trust, transparency and shared benefit. In other words, if they are not at the table, they will inevitably become part of the menu of decisions made without their voice and participation.
