“Being local may open the door; being competitive and sustainable is what keeps it open” This analysis is led by Eng. Diego Hernández C.
By Panorama Minero
The mining value chain is increasingly central to modern mining: suppliers capable of ensuring operational continuity, safety, innovation, and verifiable environmental and social performance. In that context, the supplier ceases to be a mere “input” and becomes a strategic partner. Sustainability, far from being an aspirational concept, is the new standard of competitiveness.
Being sustainable is, first and foremost, complying with the law. In Argentina, that regulatory baseline includes, among others, General Environmental Law No. 25,675; the environmental protection regime for mining activity incorporated into the Mining Code by Law No. 24,585; Law No. 24,051 on Hazardous Waste; Law No. 25,612 on the management of industrial waste; Law No. 19,587 on Occupational Health and Safety; the Employment Contract Law No. 20,744 (LCT); and Law No. 27,401 on corporate criminal liability. This baseline is complemented by provincial regulations and sectoral permits (environmental, water, land-use, transport, and waste management), as well as obligations arising from project-specific environmental and safety instruments, which in practice raise the compliance threshold across the entire supply chain.
In mining, however, the true entry standard rarely stops at regulation. Operators, driven by continuity, safety, financing requirements, audits, and reputation management, extend to their supply chain internal rules and procedures that become contractually binding: qualification and training requirements, work permits, risk matrices, site-access controls, quality standards, and audit-based evaluation schemes. In addition, operators require compliance with corporate policies that must be implemented and evidenced: CSR and community-relations policies; gender, diversity, and inclusion policies; violence and harassment prevention protocols; alcohol and drug policies; codes of conduct; anti-corruption requirements; rules on gifts and hospitality; responsible procurement policies; and, in some cases, due-diligence and human-rights guidelines. Non-compliance can trigger contractual penalties, suspension, or termination.
Therefore, sustainability is not limited to “compliance”. It is also a way of doing business: reducing risk and cost, preserving operational continuity, protecting reputation, improving access to financing, and securing markets. The market no longer buys promises; it buys evidence. Banks, insurers, industrial customers, and communities demand policies, indicators, audits, traceability, and continuous improvement. As a result, supplier eligibility is increasingly determined by measurable performance and by the ability to demonstrate it through records, KPIs, traceability, and audits.
For the supplier ecosystem, the path forward is to professionalize across four inseparable dimensions:
1 - Governance and risk: business continuity, subcontractor management, cybersecurity, insurance, document control, traceability, and reporting; integrity and transparency as entry requirements.
2 - Operations and quality: reliable delivery, preventive maintenance, robust logistics, management of spares and critical inputs, and contingency response; supplier reliability is part of mine reliability.
3 - People and safety: a prevention culture, procedures, incident investigation, visible leadership, and labor compliance (LCT), together with strict alignment to internal policies on workplace conduct, gender, and alcohol and drugs.
4- Environment and climate: impact control, waste and spill management, energy efficiency, responsible resource use, and footprint reduction with verifiable outcomes; the energy transition creates opportunities for suppliers that bring electrification, digitalization, sensorization, and predictive maintenance.
The central challenge is to build long-term relationships: clear rules, transparent qualification, shared metrics, and continuous-improvement mechanisms, supported by supplier-development programs (gap diagnosis, training, technical support, and verification). In Argentina, the “local content” discussion must also mature: it is not only about a registered address, but about installed capacity, formal employment, technology transfer, and investment in training. Being local may open the door; being competitive and sustainable is what keeps it open.
The conclusion is direct: sustainability is the future of mining because it is legal compliance, professional risk management, and, above all, a business strategy. The supplier that embeds governance, safety, environmental performance, and transparency, and aligns with operators’ internal procedures and policies, does not merely support the industry: it enables it, strengthens it, and makes it viable.
