higher costs and complications in mining operations which may require improved systems; the regulatory element is based on the changing legal elements which are shifting towards stricter environmental regulations; and the reputational driver covers the higher pressure from investors and the public on mining firms to cover issues of sustainability. Due to the issue of water scarcity in Chile, the need to evaluate the environmental sustainability of the mining industry became part of the business challenge. The government of Chile has made the necessary changes in order to support sustainability and other mining companies have also recognized the importance of reducing the impact of their actions on the environment. With these elements in place, investments and technological improvements in the mining industry are to be expected.
The major pathway through which Veolia can validate its entry into the Chilean market is that of water scarcity. This challenge has the potential to harm the growth and productivity of Chile’s mining sector. It is important for Veolia to generate integrated solutions that can minimise water use, increase water reuse and improve water quality. There are two avenues through which Veolia can pursue its selling proposition. The first suggests that Veolia promotes rigorous environmental standards to leverage a conversation with clients. The second avenue suggests that Veolia develops and uses a multi-stakeholder engagement strategy both at the project and market level. Rigorous implementation of this two-pronged strategy will assist in building a strong source of competitive advantage, and will help it to maximise the value of its services.
This paper is underpinned by a three-pronged research objective which called for examination of the way in which mining is regulated in Chile; the possibility for Veolia to use high environmental standards to leverage a conversation with clients; and the importance of a stakeholder engagement