“Mining is inexistent without research, research is inexistent without investment”

–What brought you to Emerita?

–I first learned about Emerita prior to joining the company, as the firm was an Ernest & Young client where I practiced corporate law (2015-2021). Emerita faced a daunting challenge in terms of endowment the organization of its corporate structure, image improvement, relations with public administrations and the local community.

–What are the challenges you face as a junior mining firm and for prospection?

–There are environmental, social and governance (ESG) challenges. All must be approached jointly in an integrated and enduring manner as in the case of sustainability. These challenges are an opportunity for the sector’s third transformation. Currently, we are analyzing them in search of optimal value and redefining business models to increase that value and our projects. Emerita is convinced that we are on the same path with the objective of being prepared for the future and dealing better with both the disruptions and changes looming ahead on the horizon.

–In the mining sector, why is prospection important?

–It is the least known phase of the mining process; however, in my opinion, it is the most valuable. Within the sector, its importance has gained increasing recognition; hence the rise of junior prospection firms. Previously, this aspect was practically monopolized by the mining companies. They were the only ones with the financial resources to cope with the elevated costs and risks of research. However, since 1990, we have managed to carve out an important niche when it comes to obtaining authorizations to investigate deposits. There are several examples of success, as the case of Cobre Las Cruces. It is paramount that we be able to raise capital. The optimal mechanism is to be on specialized stock exchanges. Without our own financing, the enormous investment in the prospection process would be impossible. Our business is financed in full by our shareholders.

–Do you think that society in general understands this task?

–Emerita is making major education efforts so that the importance of prospection is recognized by both public authorities and the local community. Until now, mining research went unnoticed by the general public; in the worst cases, it was unfairly labeled as a speculative activity, in the most pejorative sense of the word. Without investment, there is no research.

–Where can public administrations improve?

–First of all, they need to be aware of the huge potential lying underground in the subsoil. Minerals are there, waiting to help us all to prosper, attain greater sovereignty and independence of raw materials while facing the challenges of descarbonization. Mining helps us to be less dependent upon others.

–What do you propose?

–First of all, a clear and simple regulatory framework needs to be established. One that provides operators legal protection that does not hinder or prevent investment. Secondly, the distribution of responsibilities needs to be well defined and addressed. Thirdly, it is very important to have shorter administrative procedure times, avoid bottlenecks and provide resources for the corresponding administrative services and departments when processing files. Fourthly, there is a need to favor the creation of regulatory frameworks that provide “friendly spaces” for activities in strategic territories with major mining potential, such as the Pyrite Belt. It is a bit like the free trade zones. I congratulate the recent initiatives of the Andalusian Regional Government for such projects as the Accelerator Unit, the network of mining municipalities, the new LIST, etc. Nevertheless, much work lies ahead.

–How much have you invested to date?

–At IBW, we have invested 5.9 million euros and in the next six months we will invest 8 million more. We must thank our shareholders who have confided in the Emerita team of professionals.

–What is the impact of Emerita in the communities where it operates?

–Currently, there are more than 200 people working on the IBW project in Huelva. This includes our employees and those from firms collaborating exclusively with Emerita on this project. To give you a general idea about the impact of this project, it is noteworthy that at the location where we are now researching, and under normal conditions, if we were not operating, there would be only one full-time worker. In other words, the comparison is 200 instead of one. But that’s not all. Induced wealth is another factor. Ask local stores, cafes and restaurants, hotels, and even local service stations where fuel purchased. Remember that Western Andevalo suffers from a problem of depopulation; our project is doing its bit to encourage people remain in the area while appealing to newcomers. Last, but not least, we are very active in terms of corporate social responsibility and collaborating with charitable initiatives in the province. A plan is being designed jointly with community representatives to address further actions in the future in an organized and coordinated manner.

–Let’s talk a bit about a “greener” future where mining is vital when it comes to producing clean energy. What role does mining play in terms of sustainability?

–Mining is an activity that is closely linked to humanity. Homo sapiens have always mined, even in the Paleolithic era. Therefore, mining has always been the driving force behind development, which in turn, has incorporated these values. Today, mining cannot be separated from sustainability. Sustainable development without mining cannot be understood; nor can we understand feasible mining if it is not sustainable. A project may be considered sustainable if and when it is economically feasible one that favors social development within the community and respect for the environment. All three conditions must be met, with feedback from one to another. That is our idea.