The ongoing global energy transition relies heavily on the minerals of Latin America and the Caribbean, making the mining sector a crucial pillar for the region’s development in the upcoming decades. The region holds enormous potential to supply the critical minerals needed for the development of clean technologies such as solar panels, wind turbines, and lithium batteries for electric vehicles.
To turn this potential into sustainable development, it is essential to have a transparent and responsible mining sector that builds trust, attracts long-term investment, and promotes fairer and more equitable growth. This not only ensures the social license to operate but also maximizes the positive impact of mineral resources on the region’s economic and social development—an agenda that the Inter-American Development Bank (IDB) has supported in the region for decades.
The Value of Transparency for the Mining Industry
Transparency and accountability are fundamental pillars for any industry aspiring to have a lasting and positive impact on society. As highlighted by Edelman’s 2024 Trust Barometer, trust in companies is strongly linked to these two values, and organizations that promote them not only strengthen their brand but also foster stronger collaborations that benefit all stakeholders.
In fact, companies that operate with transparency are 20% more likely to maintain public trust (International Council on Mining and Metals).However, trust is a fragile resource that requires constant care. Perceptions of the extractive industries are deeply tied to an ongoing commitment to dialogue.
The IDB study “The Unwritten License: Social License to Operate in the Extractive Sector in Latin America” highlights how public perceptions and the legitimacy of extractive projects in Andean countries are directly linked to the balance between social expectations, perceived benefits, and companies’ responsible practices.
Transparency is therefore a key component of the social license, as it allows investors, authorities, local communities, and civil society organizations to access more precise and accurate information about corporate performance and practices.
Lessons from Chile’s Experience
Mining is not only an essential driver of Chile’s economy but also a key enabler of sustainable development and social value creation in the country—an agenda the IDB has supported for several decades.
Over the past decade, the mining sector has contributed an average of 10% of employment and 10.5% of GDP, with sustained annual growth of around 3% between 2019 and 2021 (“Chile’s mining and metals investment guide,” EY, 2025). Moreover, mining continues to be the backbone of Chile’s exports, accounting for an average of 58% of the country’s export revenues.
This is complemented by a broadly favorable social perception of the sector. Currently, 83% of Chileans (Brújula Minera Survey, 2024) have a favorable view of mining, far exceeding the global average. This combination of economic contribution and social legitimacy not only strengthens the sector at the national level but also positions Chile as a relevant case study for other countries in Latin America and the Caribbean.
Chile’s experience offers valuable lessons for a region with a strong presence of extractive industries and growing pressure to ensure their social and environmental sustainability. One key lesson is the importance of transparency and accountability within the sector, which not only strengthens its legitimacy with communities and governments but also attracts greater and better-quality investment.
Creating a Dialogue Mechanism for Greater Transparency In Chile, the National Sustainability and Accountability Forum is a good example of a collaborative approach to strengthening sector transparency. Created in 2022, it permanently brings together Anglo American and more than 30 stakeholders—including communities, civil society, and academia—to share information, ensure accountability, and promote mutual learning.
The IDB supports this space through its mining special group, providing specialized technical knowledge and suggesting guidelines for more inclusive and equitable participation. More than evaluating a single company, the Forum seeks to drive sector-wide improvements by exchanging best practices and building a shared vision for more responsible mining.
This effort is part of a broader agenda to support policies for the sustainable development of Chile’s mining sector, to contribute—at scale and with impact—to initiatives that enable the country to manage its mineral resources better and foster inclusive and resilient economic growth.
Additional Measures to Strengthen Transparency
For mining countries in Latin America, strengthening transparency standards can be decisive in reshaping public perceptions of mining: from an activity often associated with conflict to one viewed as a legitimate engine of development.
In contexts where institutional trust is low, adopting open practices, ensuring access to information, and establishing effective participation mechanisms—such as permanent public–community roundtables throughout the project lifecycle—can substantially improve governance and impact in the sector. Likewise, it is key to strengthen Indigenous consultation processes, ensuring that local concerns are timely considered and effectively incorporated into decision-making.
The IDB’s Work in the Mining Sector
At the IDB, we work closely with governments in Latin America and the Caribbean to strengthen mining sector governance and promote transparency. Our approach combines the development of long-term strategic policies—such as Chile’s National Mining Policy 2050, Argentina’s Strategic Plan for Mining Development, and Peru’s Mining Vision 2030—with modern regulatory frameworks and digital tools that improve public management, reduce administrative timelines, and strengthen social and environmental standards.
In addition, we promote territorial development initiatives, capacity building, and productive linkages that channel the benefits of mining activity into social investment, jobs, and local economic diversification. This work is reinforced by strategic partnerships with private actors committed to more responsible, innovative mining aligned with international best practices. All of this shows that transparency in mining has an impact that goes far beyond extraction, promoting sustainable development that benefits diverse communities across Latin America and the Caribbean.