Promotion and implementation of Polish mining investments in foreign markets on the example of Latin America

Foreign investments are essential in deepening economic relations between the EU and Latin America. As Latin America is fortunate enough to have deposits of metals that have become particularly desirable due to the green industrial revolution, it remains one of the dominant directions of exploration and investment in the mining sector. To intensify cooperation within the mining industries based on their complementarity, common goals, and shared values, the EU-Latin America Mineral Development Network Platform was established for all entities relevant to the mining sector, not only authorities but also businesses (including SMEs) and scientific and research units. To create a common European understanding of best practices in the processing and mining of raw materials in terms of social, environmental, and economic performance, voluntary EU principles for sustainable raw materials have been developed. Moreover, many EU countries working on updating or implementing (Poland) mineral policies, and more and more EU and Polish mining companies have been reporting non-financial aspects and impacts on local development, also in foreign countries. At the end of 2022, the European Commission proposed a Critical Raw Materials Act: securing the new gas & oil at the heart of our economy initiative to enhance the diversification and supply of critical raw materials to Europe.

So far, the largest Polish foreign investment is a copper mine in Sierra Gorda in Chile, owned by KGHM Polska Miedź SA together with the Japanese Sumitomo Group (from February 2022, Australian mining group South32). Even according to KGHM CEO, Marcin Chludziński, the Sierra Gorda mine had needed restructuring and now is a demanding but very satisfying project. KGHM reported that the revised EBITDA for 2021 was the highest and achieved PLN 10.3 billion (ca EUR 2.3 billion) year on year (+56%) and for the first time, Sierra Gorda began to pay off its liabilities towards the owners. Moreover, the mine received an award in the category of large producers awarded by the State Mining Association in Chile (SONAMI). In addition to mining activities in the field of exploration and exploitation of deposits, Poland is developing cooperation in technology (mining machinery) and education. To ensure sustainable extraction of raw materials additional skills are required, in particular in the area of management and social sciences. The aim of the paper is to analyze and identify factors and best practices enhancing international cooperation and the environmental sustainability of minerals in line with the 2030 Agenda for Sustainable Development on the example of Polish investments in Chile. The analyzed case studies in a broader context, including the EU and Polish mineral policy, allow for the development of certain recommendations and tools for the promotion of foreign investments in the mining industry.