4-11. EHS Challenges in South American Mining Development: Environmental Destruction and Workplace Accident Risks

Mining development in South America is attracting global attention due to the region's abundant mineral resources. The demand for resources such as lithium, copper, and gold is surging with the expansion of the renewable energy and electric vehicle markets. However, the environmental and occupational health and safety (EHS) challenges associated with mining are becoming more severe, forcing companies to comply with international regulations and social demands.

1. The Reality of Environmental Degradation

Mining development in South America is causing significant issues such as large-scale deforestation and the excessive use of water resources. Lithium extraction, in particular, consumes vast amounts of water from salt lakes, leading to regional water shortages and severely impacting ecosystems and local communities. Gold and copper mining also generate hazardous waste and heavy metal contamination, raising concerns about long-term damage to rivers and soil. These issues are a target of international criticism and directly affect a company's reputation and business opportunities.

2. Occupational Accident Risks

Occupational accidents remain frequent at mining sites in South America. Common risks include mine collapses, explosions, and occupational diseases like pneumoconiosis from dust inhalation. The lack of proper safety equipment and training is a contributing factor, and conditions in some areas continue to fall short of International Labour Organization (ILO) standards. Worker protection is often inadequate, especially in small- and medium-sized mines and the informal sector, which makes companies accountable for ensuring safety throughout their entire supply chain.

3. Impact of EHS Regulations and International Standards

While major mining countries like Chile and Peru are strengthening environmental regulations and labor laws, their enforcement can be a challenge due to insufficient resources and corruption. Meanwhile, in the international market, obtaining ISO 14001 (Environmental Management) and ISO 45001 (Occupational Health and Safety Management) certifications is increasingly becoming a condition of doing business. Additionally, EU and US companies are rigorously applying their ESG procurement policies to mineral sourcing from South America.

4. Actions Companies Must Take

Companies engaged in mining in South America must advance initiatives that balance the reduction of environmental impact with the assurance of worker safety. Specific measures include:

• Improving water resource efficiency and introducing recycling technologies

• Thoroughly managing waste and heavy metals

• Enhancing safety training and providing protective equipment to workers

• Building consensus through dialogue with local communities

• Obtaining third-party certification based on international standards

5. Future Outlook

As the world demands sustainable resource development, South American mining will continue to be under international scrutiny. Companies that neglect EHS issues face regulatory violations, litigation risks, and a loss of trust from investors and customers. In contrast, those that proactively implement EHS measures can be recognized as models of sustainable development and build a long-term competitive advantage.

Summary

While mining development in South America offers significant economic benefits, it is fraught with serious environmental and occupational safety challenges. To ensure sustainable business operations and build social trust, it is essential for companies to strengthen their EHS management in accordance with both international standards and local regulations.