Ilan Goldfajn, president of the IDB, used the meeting to present the case that rare earth and other strategic mineral projects can generate economic benefits for Latin America if environmental protections, labor standards and governance safeguards are properly enforced.

The discussion comes against the backdrop of longstanding Vatican criticism of multinational mining operations, particularly in Latin America, where extraction projects have frequently sparked disputes over environmental degradation, Indigenous land rights and unequal distribution of economic gains.

Goldfajn acknowledged those concerns but said the region has an opportunity to avoid the mistakes that have historically accompanied resource extraction.

“It’s a unique opportunity for the region, but you need to do it in the right way with the standards, the labor conditions, with the environmental conditions and the governance,” Goldfajn said in an interview before the meeting.

The IDB currently has a pipeline of approximately $4 billion in critical mineral projects, primarily in Chile, Argentina and Brazil, with roughly three-quarters of the financing involving private-sector participation.

Demand for minerals such as lithium, copper, cobalt, nickel and rare earth elements has surged as manufacturers expand production of electric vehicles, semiconductors, renewable energy systems and advanced defense technologies.

Latin America possesses some of the world’s largest reserves of these resources, positioning the region as a key supplier in increasingly competitive global supply chains.

Pope Leo, who spent two decades as a missionary and church leader in Peru before his election, is widely viewed as deeply familiar with both the economic promise and social consequences of mining activity.

His ministry included assignments in regions associated with major copper and gold extraction projects, exposing him directly to the concerns of local communities affected by industrial development.

Goldfajn said the pope’s experience gives him a nuanced understanding of the sector’s challenges and opportunities.

The Vatican has consistently advocated stronger protections for Indigenous populations and communities impacted by extractive industries. Earlier this year, Church officials promoted initiatives encouraging religious institutions to review investments in mining companies and increase support for communities affected by resource extraction.

The campaign followed years of criticism from the late Pope Francis, who frequently highlighted environmental damage linked to mining operations and called for affected Indigenous groups to be central participants in decisions involving their territories.

The Vatican did not release details of Friday’s private meeting between Goldfajn and Pope Leo.

Analysts say the pope’s views carry significant influence across Latin America, where Catholic institutions often play an important role in shaping local responses to major mining projects.

The debate comes as countries seek to balance economic development and growing global demand for critical minerals against environmental concerns and social opposition.

According to the latest estimates from the U.S. Geological Survey, more than half of the world’s known rare earth oxide reserves are located in China, while Brazil holds the second-largest reserves globally, underscoring Latin America’s strategic importance in future mineral supply chains.