Chile’s vulnerable underground human capital

Mining is notoriously dangerous, but in terms of deaths per
employee it is not actually the most dangerous occupation in the world
(unless it’s a Chinese mine); in both the UK and the US it’s fishing that is the most dangerous occupation. Farming,
logging, construction work and of course bomb disposal are also
hazardous. In all these jobs, and others, human capital (physical,
intellectual and social) may be lost when there is a disaster. Oil rigs
and farm machinery can be replaced but people are unique – and take much
longer to grow.

Copper has been one of Chile’s most important exports for many years. According to one report, it accounted for nearly 58% of Chile’s export sales during 2009.

However, the financial crisis, Chile’s dependence on copper exports,
and the world’s dependence on Chile’s copper have all put pressure on
the mining business. Recently, record copper prices meant that older
mines with deteriorating infrastructure became valuable again. San Jose de Copiapo, where the 33 miners are trapped, is one of those older mines and is “notoriously dangerous”.

A former head of Chile’s national geology and mining service said
that the reopening of the San Jose de Copiapo mine in 2008 was not carried out in accordance with normal procedures.
Another senior civil servant said that the authorities came under
pressure from the mining sector to keep the mine open after an attempt
to close it on safety grounds in 2001.

President Pinera
said a few days ago that “there will be no impunity and I want to
stress that both penal and civil investigations have begun and we are
going to identify the responsibilities and punish those responsible
ones”.

According to the company’s lawyer, it is “evaluating declaring
bankruptcy as it does not have enough assets or capital to pay miners’
salaries and the cost of the rescue effort. Salaries have been paid up
to August but the future remains uncertain”.

So, for those poor people who are stuck deep underground … the disaster is being managed, their physical and psychological needs
are being addressed, but what next? Will they have no income once
they’ve been rescued? Will their community lose a source of jobs?

Will the Chilean government be able to introduce legislation, with
teeth, that frightens and/or motivates private companies into protecting
their human capital better? Will unions be listened to? Will companies change, and value their human capital more? Will investors insist on it? Let’s all hope so.

miners undergroundOr will the mining companies, such as the one involved in this incident, go underground and mine their human capital in deepest darkest Peru?

 
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