• Shared value is 2023 PERUMIN Hub’s new central theme, which was addressed by Miguel Inchaustegui at Mining Thursday.

At Mining Thursday, an event organized by the Peruvian Institute of Mining Engineers and focused on the presentation of their innovation program called PERUMIN Hub, Miguel Inchaustegui—an adviser to, and independent director of, Cañariaco Copper Peru—talked about how valuable it is to foster innovation through the creation of shared value.

According to Inchaustegui, incorporating shared value into the activities of the mining sector will enable it to build trust and create a virtuous circle for the proper use of energy resources, overcome current obstacles the industry faces, and create a sustainable world that will benefit us all.

“Sustainable mining must encourage a virtuous circle that helps in the closing of social gaps and the development of the regions; the decentralization and strengthening of institutions; the achievement of environmental sustainability; as well as the promotion of good practices, competitiveness, and sustainability within the sector,” he pointed out.

Shared Value as the Most Powerful Practice for Mining Companies

Inchaustegui indicated that, if we see shared value from a business point of view, it undoubtedly offers many benefits. “Shared value will improve your competitiveness and profitability, since it increases the level of collaboration among stakeholders, brings down the level of conflict, and outlines a new business purpose. All this together also helps maintain a good social license to operate,” he affirmed.

He also highlighted that this practice gives companies the chance to innovate, compete and create a sustainable business environment, while meaningfully addressing social and environmental challenges and fostering creativity and business strategies in the medium and long term.

 “We can enhance collaboration through coexistence, dialogue and shared value creation in order not only to reduce or prevent conflicts, but also to encourage productive and sustainable development, meet the needs of the communities, strengthen social license to operate, and fulfill the company’s purpose,” stressed Inchaustegui.

Impact for a Sustainable World

This would be a win-win practice for the company, the communities and the environment. According to Inchaustegui, innovation would be the key to the success of shared value in the corporate strategy. He suggests considering, first of all, creating a positive social and environmental impact, which will then translate into a favorable impact on the business, and innovation must be used here in order to expand the extent and scale of the impact in a cyclical fashion.

In this sense, Inchaustegui deemed it important to give continuity to initiatives of dialogue, just like RIMAY and the Centro de Convergencia y Buenas Prácticas Minero-Energéticas do in Peru  and the International Council on Mining and Metals (ICMM), at an international level. The latter aims to achieve leadership through collaboration in order to enhance the contribution of mining and metals to sustainable development.

It is worth mentioning that, from the 26 mining companies that are part of ICMM, 12 operate in Peru, and one of them is Peruvian (Minsur). The IIMP is also a member of this organization, whose members are all guided by the four development projects defined in the 2022-2024 period.