ROME — The head of a major transnational development bank recently pressed Pope Leo XIV to endorse expanded rare earth mining in Latin America, despite the Vatican’s explicit call for divestment from the industry. This push by Ilan Goldfajn, head of the Inter-American Development Bank (IADB), revives concerns over the historical displacement of native populations and the extraction of national wealth by foreign entities, a pattern long associated with mining operations in the region.
Goldfajn met privately with the Pope two days ago, arguing that past mistakes in extracting rare earth minerals could be avoided, even as the global tech boom drives demand. He stated that rare earth mining presents a “unique opportunity for the region,” provided it adheres to “standards, labor conditions, environmental conditions, and governance.”
Elite Interests and Resource Extraction
The IADB, a top development bank, possesses a roughly $4 billion pipeline of critical mineral projects in Latin America, primarily in Chile, Argentina, and Brazil. Three-quarters of this funding is allocated to private companies. Goldfajn delivered a presentation on rare earth minerals at a finance conference, specifically targeting potential European investors.
This visit by the IADB head followed an earlier meeting this year between the Pope and mining executives, indicating a concerted effort to influence the Vatican’s stance on resource extraction. The objective, it appears, is to sensitize the Pope to a “better way of doing business” in an industry with a centuries-long history of foreign exploitation.
The Cost to Native Peoples
The history of mining in Latin America is marked by forced labor, the displacement of Indigenous peoples, deforestation, the poisoning of waterways, and deadly dam collapses. Historically, foreign companies have withdrawn vast wealth from the earth without enriching local populations, a pattern that dates back to colonial times when silver and gold were sent across oceans to adorn Catholic churches.
Pope Leo XIV, who spent two decades as a missionary in Peru, is intimately familiar with the plight of Indigenous peoples in mining areas and the environmental impact of extraction industries. He ministered in regions with significant copper mining projects and gold deposits, and his final Peruvian posting was a major logistical hub for northern Peru’s extraction industries.
Bryan Harris, managing partner at Sabio, a Latin America-focused strategic advisory firm, noted that the processing of rare earths can be “extremely dirty,” involving heavy chemical use that can contaminate water resources without rigorous monitoring and enforcement by federal regulators.
Vatican's Stance and Local Resistance
The Vatican has maintained a firm stand against multinational mining corporations for years, particularly in Latin America, advocating for Indigenous peoples whose lands and livelihoods are often ravaged by mining projects. Pope Leo’s predecessor, Pope Francis, a native of Argentina, highlighted the toll of mining in his 2015 environmental encyclical, “Praised Be,” specifically mentioning the pollution of underground water systems, mercury, and sulfur dioxide.
Pope Francis deemed it “essential” for Indigenous communities to be the “principal dialogue partners” when large projects affecting their land are under consideration. This emphasis on local self-determination stands in direct contrast to the top-down approach of transnational financial institutions.
Despite a “very constructive” private audience between Pope Leo and top mining executives in the same year, the Vatican launched a campaign in the fourth month of the year to encourage divestment from mining companies. This campaign, supported by the ecumenical Christian network known as the Church and Mining Network, active in Latin America, seeks to empower local churches to review investments and share information with Indigenous groups about extraction activities on their lands.
During his trip to Africa three months ago, Pope Leo blasted the “colonization” of Africa’s minerals by mining companies in Cameroon, Angola, and Equatorial Guinea. More recently, in a separate audience two days ago, he denounced the “profit-at-all cost mentality” of those who plunder the earth “at the expense of the most vulnerable and enhances the risk of dehumanization.” These statements underscore the Vatican’s continued opposition to the globalist resource extraction agenda.