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.

A controversial reform to Ley de Glaciares has intensified debate in Argentina, as the government moves to relax environmental protections in high-altitude regions to facilitate mining investment.

The decision has triggered protests from environmental groups and raised concerns among communities dependent on glacier-fed water systems.The shift follows years of tensions surrounding mining operations such as the Veladero mine, a gold and silver project that began operating in 2005 in San Juan Province.

The mine, jointly owned by Barrick Mining Corporation and Shandong Gold, has long been at the center of environmental scrutiny. A cyanide spill in 2015 polluted rivers in the region, raising concerns about downstream water safety in the Jáchal basin, although subsequent studies indicated that contamination levels remained within safe limits.

Additional spills reported in 2016 and 2017 remain under investigation.Local residents and environmental advocates have argued that operations at Veladero violate glacier protection laws, which were originally designed to prohibit industrial activity in sensitive high-mountain ecosystems.

These concerns have persisted despite legal challenges by mining companies, including attempts to have the law declared unconstitutional, which were rejected by Argentina’s Supreme Court.The newly approved reform, backed by President Javier Milei, introduces significant changes to how glacier protection is applied.

Passed by 137 votes to 111 in the Chamber of Deputies following earlier Senate approval, the legislation allows provincial authorities to determine which glaciers and periglacial areas qualify for protection.

The criteria hinge on whether these ice formations serve a “relevant water function,” effectively decentralizing decision-making that was previously governed by national standards.

Government officials argue that the reform is essential to unlocking Argentina’s mineral wealth, particularly as global demand for critical resources such as lithium and copper rises in response to the energy transition.

Milei described the previous framework as overly restrictive, stating that it created “artificial obstacles” and prevented development even in areas lacking significant environmental value.However, critics contend that the changes weaken a foundational environmental safeguard.

Andrés Nápoli, executive director of the Foundation of Environment and Natural Resources, warned that the reform undermines protections for key water reserves. He argued that linking glacier exploitation to sustainable energy goals presents a contradiction, emphasizing that glaciers play an essential role in maintaining ecological balance.

Environmental groups estimate that approximately 7 million people, or 16 percent of Argentina’s population, rely on glacier-fed water systems. Beyond supplying rivers, glaciers regulate fragile ecosystems that are increasingly vulnerable to climate change.

In the country’s northwest, scientists report that glacier mass has declined by around 17 percent over the past decade, heightening concerns about long-term water availability.The reform has prompted public demonstrations, including protests organized by Greenpeace outside the National Congress.

Several activists were detained earlier this year during a demonstration coinciding with Senate deliberations. Protesters argue that transferring authority to provincial governments risks prioritizing short-term economic gains over environmental sustainability.

Supporters of the reform, including provincial leaders in resource-rich regions, maintain that the previous law was overly broad and hindered investment in areas where environmental impact is minimal. Luis Lucero stated during a congressional hearing that framing mining and environmental protection as mutually exclusive is misleading, describing it as a misconception that should be removed from public discourse.

Experts caution that the issue extends beyond technical definitions of glaciers. Ruiz noted that glaciers are dynamic systems whose role in water supply can vary over time, making it difficult to assess their importance through fixed criteria.

He argued that the debate is ultimately political, centering on who has the authority to determine what constitutes a resource worth protecting.In communities such as Jáchal, the stakes are immediate and tangible. Residents have expressed fears about water contamination and long-term environmental degradation.

Activists like Zeballos, a local campaigner, have taken personal measures such as avoiding river water, citing concerns over safety. For many, the issue is framed not only as an environmental question but as one of survival.The reform underscores the broader challenge facing resource-rich nations seeking to balance economic development with environmental preservation.

As Argentina positions itself as a key supplier of minerals critical to global energy systems, tensions between national growth strategies and local ecological concerns are likely to intensify.