Alberto Salas, president, La Sociedad Nacional de Minería (the national mining society of Chile)
What is the historical role of SONAMI?
La Sociedad Nacional de Minería (SONAMI) is one of the oldest business organizations in Chile. This year we’ll have been running for 129 years and during that time we have played a key role in the development of the mining sector.
Since our establishment we have actively participated in successive modernizations of the mining legal system which regulates us. We did so with the codes of practice from 1888 and 1930, which joined the Ley Orgánica Constitucional (common constitutional law) about mining concessions and the current mining code, enacted in 1983. With this same spirit, SONAMI has satisfied a variety of needs of small, medium and large mining companies.
What are SONAMI’s objectives?
The strategic objectives of our organization are to promote the development of private mining; to be the focal point of all mining activity in our country and represent all of our associates before the authorities and national and international organizations; to offer information services and to support our members with technical issues, legal issues, work issues, environmental issues, and tax and economic issues.
(This artilce is part of the 'Chile Mining Focus Special Report' - Read the full report here)
How important is mining in Chile?
Mining is the main economic activity in Chile, so we are strongly committed to the development of the mining sector and in creating good conditions for foreign investment. In the last six years (2006-2011), the mining industry contributed 16.4 percent of gross domestic product, generated 64.3 percent of total exports and contributed to 23.4 percent of the total tax revenue. In conclusion, mining is the most competitive and relevant activity in international trade that the country has, so we are committed to becoming a mining power at a world level.
What makes Chile a good place to invest?
Chile is a great place to invest because national and local politics give investors confidence in our competitive environment through our institutional stability and social conditions as well as our balanced economy, free competition and open international trade.
Similarly, the law relating to mining concessions and the code of practice for mining in Chile have established a clear line of ownership of the mining concessions.
Last but not least, Chile is proud of its geological potential and the quality of its workers, engineers and professionals, all of whom are highly qualified to carry out these activities at a world class level.
How do you maintain dialogue with your members?
In order to make our administration more efficient we have organized work groups in different professional categories who analyze the concerns of our members. For example, small, medium and large company mining committees have been formed and each one analyzes their main concerns and informs the directors. Additionally, they carry out two general meetings during the year, in which all of our associates meet to discuss different points of interest.
What are the important issues for the mining industry in Chile?
The most important point is that today we have a $100 billion portfolio of investments for the period 2012-2020, which will generate 100,000 new jobs.
This impressive portfolio of investment is very important not only for its significant monetary value, but also for its multiplying effect on other production sectors and services.
As a result of this boom in mining, however, other challenges emerge which need to be dealt with to secure the competitiveness of our industry, especially relating to human capital, water and energy resources.
What is your position on responsible mining?
Mining today looks towards sustainability, which is a very significant current concern. Mining companies know they should develop their projects alongside communities, with due regard to the environment and take an integrated approach, not only from the point of view of the shareholders but from all interested groups.
How does SONAMI support local communities?
We have created the SONAMI Foundation to support our initiatives in social responsibility, especially in regard to educational issues, culture and art. For their part, our associate companies have incorporated social responsibility as a central element of their activities. In playing this momentous role in the development of our country, mining has clearly declared it is fully behind the concept.
Social responsibility is demonstrated by their active contributions to the sustainable development of the country, the improvement in the quality of life of its people by means of efficient ethical initiatives, which enable the community to benefit from the socio-economic profits derived from mining operations.
How do you see the future of the mining industry in Chile?
The numbers speak for themselves. The current investment portfolio is very encouraging and with China leading the world’s economic growth, commodity demand is likely to remain solid in the future.
