IDB LAC Minerals: Financing and Partnerships to Transform Mining Development in Latin America and the Caribbean

In a rapidly changing world, minerals have become a central component of economic and technological development. Copper, lithium, nickel, graphite, and rare earth elements are now essential inputs for infrastructure, electric mobility, energy storage, and advanced technologies.

In this context, Latin America and the Caribbean is strategically positioned, as it holds some of the world’s largest mineral reserves and plays a leading role in global mining production. The region accounts for approximately 37% of global copper production, occupies an important position in lithium, iron ore, bauxite, and niobium markets, and possesses significant untapped potential in minerals such as rare earth elements, graphite, and nickel.

Recognizing both this opportunity and the challenges that accompany it, the IDB Group, made up of the Inter-American Development Bank (IDB), IDB Invest, and IDB Lab, has launched IDB LAC Minerals, a comprehensive framework that makes available all of its instruments to support countries and investors throughout the mining value chain and ensure that mineral wealth is translated into economic and social development.
 

Building a Robust and Responsible Mining Value Chain

IDB LAC Minerals combines technical assistance, financing, and strategic partnerships to support countries across all stages of mining value chain development. Its purpose is clear: to position the region as a key player in global strategic mineral markets by strengthening competitiveness, accelerating investment, and promoting sustainable development that generates tangible benefits for people and communities.

The initiative aligns IDB Group’s effort under three strategic pillars: 

1. Institutional strengthening, capacity building, and governance
Creating an enabling environment for responsible mining through stronger regulatory and fiscal frameworks, improved permitting processes, enhanced technical capabilities, and greater transparency and traceability.

2. Investment mobilization and risk management
Facilitating investment and reducing risks across mineral value chains to attract capital and promote private-sector-led projects. This pillar combines sovereign and non-sovereign financing, risk mitigation instruments, co-financing mechanisms, and public-private partnerships. It also seeks to ensure that projects generate greater social and environmental benefits, strengthening their legitimacy and acceptance among communities and stakeholders.

3. Infrastructure and value chain enablement
Supporting the development of physical and digital infrastructure needed to produce, process, refine, and export minerals efficiently and sustainably. At the local level, it promotes the development of small and medium-sized mining companies and suppliers to increase their participation in value chains, improve productivity, and facilitate integration into national and international markets.

From Strategy to Action: Mobilizing Resources and Partnerships for Greater Impact

The initiative is supported by an active resource mobilization and co-financing strategy involving bilateral and multilateral partners as well as the private sector. Through loans, guarantees, concessional funds, and technical cooperation, the IDB Group seeks to close financing gaps and expand the impact of investments in the mining sector.

Within this framework, the initiative is already supporting several countries in the region through resources provided by the European Union and the Government of Japan.

In Brazil, it supports the mapping of critical mineral deposits to strengthen the quality of geological information, optimize decision-making, and facilitate long-term strategic planning for the mining sector. In Bolivia, it supports mining sector development through reforms aimed at diversifying participation in the sector, improving environmental sustainability, strengthening institutions, advancing strategic projects, and attracting investment. 

In Chile, it supports the National Geology and Mining Service in the modernization and digital transformation of its Geological Exploration Information System (SIGEX), which is expected to reduce processing times for permits and declarations related to mineral exploration and mining property by nearly 50%, advance digitalization efforts, and improve the integration of geoscientific and territorial information.

In Argentina, IDB Invest plays a key role through financing of up to US$1.175 billion to support the expansion of Rio Tinto’s Rincón Mining lithium project in Salta Province. The operation will strengthen production, employment, and the integration of local suppliers, while being complemented by technical assistance to enhance environmental, social, and governance standards and foster regional economic development.