Experts analyze experiences of investments in multipurpose water infrastructure in mining projects in Chile and Peru

The Natural Resources Division (DRN) of the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) jointly organized with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and the Chilean Ministry of Mining the Workshop “Investments of mining in multipurpose infrastructure: the case of water infrastructure”, within the framework of the Regional Cooperation program for the sustainable management of mining resources in the Andean countries (MinSus).

The Workshop was held on March 16 and 17 at the ECLAC facilities and brought together key actors from the government, business, multilateral banks and civil society who participate in the different topics of debate around investments in multipurpose mining infrastructure. The event had the objective of discussing experiences and good practices, as well as challenges and gaps, to implement mining investments in multipurpose water solutions.

Representatives of shared investment and infrastructure areas in the mining and water sectors of the Ministry of Mining of Chile participated; Chilean Ministry of Agriculture; Columbia Center on Sustainable Investment (CCSI) in Chile; International Center of Excellence of the Sustainable Minerals Institute (SMI) in Chile; Chilean Copper Commission of Chile (COCHILCO); Anglo American Chile; Acciona (Aguas CAP Infrastructure in Copiapó-Chile); ECONSSA of Chile; Chilean Association of Desalination AG (ACADES); National Copper Corporation of Chile (CODELCO); Laboratory of Coastal Ecosystems and Global Environmental Change (ECCA Lab) of Chile; University of Conception; DESALA from Chile; Ministry of Mining of Argentina; Ministry of Energy and Mines of Peru; National Water Authority of Peru; Sociedad Minera Cerro Verde SAA, from Peru; Development Bank of Latin America (CAF); International Finance Corporation (IFC); and the GIZ Decarbonization Project.

According to the organizers, a possible solution to benefit the territories surrounding the mining projects is the promotion of investments in multipurpose infrastructure. The possibility of this infrastructure being shared with the communities and the economic activities present in the territories can offer very valuable socioeconomic returns.

In certain regions that face water stress, water consumption for mining activity presents various challenges and can be the focus of conflicts over the use of the resource with other activities such as agriculture, tourism or household consumption in communities. However, experiences in operation and development in Chile and Peru of investments for the construction of desalination plants or other solutions for water supply have the potential to ensure access to water both for the mining company concerned and for other users. However, these infrastructure solutions must also overcome several of their own challenges, such as in Chile, which still lacks a regulatory framework and specific regulations, or which requires further studies on the possible impacts on the environment in the long term and the forms of mitigation.

Another important aspect of this type of multipurpose infrastructure is the need for multi-stakeholder (government-company-society) and multilevel (national-subnational-local) coordination. An infrastructure designed to be shared and sustainable can favor and strengthen the relationship between mining companies and communities, and create enabling conditions for the social license.

The Workshop was structured around five sessions, in which the results, opportunities and obstacles of case studies were presented and experiences on engineering, financing, regulation, coordination between actors and socio-environmental aspects were identified.

The Workshop also addressed the key role of the state and public-private partnerships to promote investment in multipurpose infrastructure and close the gaps in access to water, energy, communications and transportation services in the territories. To achieve the enabling conditions for investment in sustainable shared infrastructure, a robust institutional environment, legal certainty, adequate regulatory frameworks, sufficient coordination and planning are required; financing conditions in line with investment horizons; transparency in the processes of contracting, control and inspection, capacity and independence in the inspection; coordination of key actors and citizen participation; tariff systems with criteria of efficiency and equity.

ECLAC seeks to make mining more sustainable in the countries of Latin America and the Caribbean. This objective is shared with the German Cooperation, for which reason they work together with GIZ and BGR in the MinSus program to generate knowledge, provide technical assistance and promote dialogue. ECLAC expresses its commitment to continue supporting these initiatives as an opportunity to contribute to the achievement of the sustainable development goals of the 2030 Agenda.