Context
The mining sector has the potential to contribute to economic growth and social development, thereby contributing to the Sustainable Development Goals (SDGs). At the same time, the sector can have adverse social and environmental impacts on its surrounding territories.
The global energy transition needed to achieve the objective of Paris Agreement will require significant amounts of minerals such as lithium and copper, as these are important inputs for low-carbon and digital technologies. Many of these minerals are abundant in the Andean region, which is already a leading global supplier. At the same time, there are countries dependent on coal exports, which will have to prepare for market changes, as demand for these resources fall.
This context brings opportunities and challenges for the Andean countries. To ensure that the mining sector promotes sustainable development, it is necessary to develop policies that integrate economic, social, and environmental best practices. Apart from strengthening environmental laws and oversight, there is a need to improve transparency of tax payments, improve the management of revenues, reduce mining related conflicts by and fostering the participation of the most vulnerable populations in the decision-making processes, and develop economic linkages to the sector.
The market is also increasingly seeking sustainability attributes, as mineral importing countries are concerned about supply chains complying with human rights and environmental standards.
For this reason, the Federal Ministry for Economic Cooperation and Development (BMZ) has commissioned the GIZ and BGR to jointly carry out the Project "Regional Cooperation for the Sustainable Management of Mineral Resources in the Andean Region" (MinSus), together with the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) as the regional partner.
Objective
MinSus’ objective is to incorporate social, environmental, and economic standards in mineral supply chains with a special focus on the beginning of the supply chain, namely the mining sector. The project aims to particularly contribute to the following SDGs: 3 Good Health and Wellbeing; 5 Gender Equality; 6 Clean Water and Sanitation; 8 Decent Work and Economic Growth; 9 Industry, Innovation, and Infrastructure; 12 Responsible Consumption and Production; 13 Climate Action; 15 Life on Land; 16 Peace and Justice; and 17 Partnerships for the Goals.
Approach
The project promotes responsible mining practices that contribute to the achievement of the SDGs. At the national and regional level, MinSus seeks to support counterparts in implementing policies and strategies that promote responsible mining practices and foster the exchange among the Andean countries. At the local level, MinSus seeks to pilot new approaches and technologies, as well as using these best practices to scale them up at the national and regional level.
As a central element, MinSus pursues a multistakeholder approach, involving the public sector, private companies, civil society, academia, and multilateral organizations.