The role of the circular economy in Chilean mining

Under Chile’s national mining policy, the large-scale copper industry is required to cut its CO2 emissions by 50% by 2030 and reduce the consumption of continental water to no more than 10% of total water used.

The policy specifies the circular economy model as a formula to achieve the objectives and incorporate sustainable practices, such as the efficient use of resources and reusing waste.

In line with that policy, Chilean copper miner Antofagasta Minerals invested more than US$130mn to convert its Centinela mine to use only seawater, ending the extraction of groundwater. The company’s goal is for 90% of water consumption in all its operations to come from the sea and be recirculated from 2025, Antofagasta said in a statement this week.

State-owned Codelco, meanwhile, together with the Alta Ley corporation, the association of industrial mining suppliers (Aprimin) and mining association Sonami, developed an instrument to measure and manage the carbon footprint of mining suppliers.

The tool is a way to motivate the reduction of greenhouse gases and to serve as a basis when deciding on awarding contracts or making purchases.

Measuring carbon emissions and water consumption are the main actions that companies have been adopting in Chile to change their production models towards a circular system, according to a study on the circular economy carried out by Aurys Consulting.

However, "the mining industry is still in an early stage of development in terms of the circular economy. It must face several challenges to internalize it as an operating model and systematically incorporate circularity practices," Emilio de Giacomo, a founding partner of Aurys, told BNamericas. 

It is important to look at the circular economy beyond recycling and not only as a provider of environmental benefits, he says. "The main focus should not be on recycling waste, but on trying to avoid or reduce it," according to de Giacomo.

The expert in senior management consulting and in the design of corporate strategies, says the circular economy also allows improvements in the use of materials, in process times and in the incorporation of technologies, in addition to improving a company’s reputation among local communities, professionals and financial markets, among others.

"It is necessary to rethink and transform industrial processes, considering measurable objectives and KPIs [key performance indicators] in the processes so that each one can be controlled and managed from the point of view of circularity," he added.

There is a consensus that mining is essential to the fight against climate change, so the industry must be a benchmark in terms of decarbonization measures and the reduction of environmental impacts.