Connecting global value chain of copper mining for sustainability

China, Japan and India are the three largest buyers of copper mined in Chile today. While those countries benefit from the minerals, a deeper question shall be asked - whether that is fairly benefiting local communities in the mining region/country. When technology revolution fuels global industrialization, the ecological footprint and social footprint of resources mining shall be brought to the debate when UN SDGs face huge challenges to be delivered globally.

My recent visit to Chilean's Region 2 - the world largest copper mining operations and also Chile's largest exporter of copper - provides me with a reality perspective. Water security posed by mining, not just copper but also lithium and other minerals, is among a top issue to be addressed. Very importantly, such challenges can only be tackled effectively if global value chain of mining is convened from the perspective of resources, expertise, and wisdom, to act together.

The sense of urgency also comes from its impacts on local indigenous community's livelihoods. Decades of mining practice that has failed to pay adequate attention to impacts on water security have left clear marks on the land. Formed by volcanic activities over millions of years ago, Region 2 presents a unique topography, surrounded by volcanoes and mountains at the cross-region of Chile, Bolivia and Argentina. It is the driest region in the world. Riding through the region for four hours from one city to another, I am literally awed and breathless by the Moon Valley, the oases, but in the meanwhile witnessing the sand storms in the desert when the wind blows hard. It is quite different from the sandstorm I experienced in China though, more Gobi-like desert without sand dunes.

The region's mineral reserve was discovered by a combined efforts of American and Chilean geologists, starting in the 1970s. Not until the Spring of 1981. the geologists discovered an important enriched sulphide horizon, which ushered in decades of investment in mining of rich minerals such as copper, lithium, gold, silver, and others.

Leading global companies like BHP and others started their operations in the region since then. While today we are all aware of the water constraints over mining, back then, there was not adequate knowledge, information, laws and regulations, as well as political will to grapple such a challenge. Like other parts of the world in modern history, Chile today has to figure out strategy and solutions to address the water-mining nexus.

I applaud the leadership from BHP by taking aggressive actions to contribute to the solutions. By setting a clear goal of Zero Fresh Water Mining by 2030, the company has also developed a clear roadmap to advance towards that goal by reducing dramatically its intake of freshwater in the water-sensitive and vulnerable regions, while investing heavily in alternative options. I had the privilege to do a guided-site visit of the largest desalinization operations in the whole Americas today located in Coloso of Antofagasta. With an investment of 3.5 billion dollars, the company today has developed leading expertise and capability in de-salt, replace freshwater intake for its copper processing, and adopt an integrated engineering process by capturing the pressure to power its engines. As a result, the operations save up to 80% of its energy.

BHP global CEO Andrew McKenzie made a huge "blast" a couple of months ago when he committed the company to invest in Scope III GHG emissions reductions - an act so much desired and demanded by global community to tackle climate change. The operations in Chile is a real-life showcase of the company's actions and dedications. With more investment in solar and wind energy in the pipeline, you could expect a clean-energy-powered copper mining best practice model very soon.

A difficult issue on the table today for discussion and debate is who shall bear the brunt of costs when ecological and social impacts on mining regions? There is no doubt that leading companies and industries shall take the main share, as what has been unfolded in the region. A deeper debate is to understand the whole value chain and find an accelerated transformation. We get all excited about the 4th Industrial Revolution. As we all understand that the benefits of the industrial revolution cannot possibly be delivered without minerals and materials in general. When we say that most of the efforts on the ground today by nations, regions, and corporations worldwide are incremental since they do not meet with the global challenges when added up, an accelerated transformation and systemic change is required today, then we have to go back to the value chain to connect the dots to ensure that while we are benefit from minerals and materials, we all shall take our share of responsibility. Therefore, a global partnership can be examined to advance our action together.

I enjoyed absolutely my first-ever trip to Chile. And I am awed by its culture, language, landscape, and people. I wish I spoke Spanish. I am "melted" by the warmth of local people. I got may "cheek" kisses and greetings. And I learned so much.

Chile today is an OECD country, but faces tremendous governance and institutional challenges when you look at it through the lens of water and mining. It seems a regionalization and decentralization movement is just on. Though not sure what will come out of the process, I do hope that together we will be able to break the "curse" of water and mining.

What gives me shimmer is the local innovation revolution that inspires the younger generation to join the forces to solve the puzzle. I met some of them. And I have literally seen a bright prospect that innovators and entrepreneurs from both China and Chile come together to lead the actions.

When I am about to depart this beautiful country, I give my greatest appreciation to all the friends and colleagues on this journey! Best Wishes.