ROME — Ilan Goldfajn, head of the Inter-American Development Bank, met privately with Pope Leo XIV in Rome on a Friday in June. Goldfajn advocated for rare earth extraction in Latin America, stating that implementing safeguards could prevent historical mining mistakes.

The Vatican has called for divestment from the mining industry and has opposed multinational mining corporations in Latin America while advocating for Indigenous peoples affected by mining projects. During colonial times, silver and gold extracted from Latin America were transported across the ocean to decorate Catholic churches. Historical mining operations in the region have involved forced labor, displacement of Indigenous peoples, deforestation, waterway contamination, and dam collapses.

Goldfajn described the current situation as a unique opportunity for Latin America. He said, "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, the governance." He added, "We have exactly the tools to do that." The Inter-American Development Bank has a pipeline of approximately $4 billion in critical mineral projects in Latin America. Private companies are involved in three-quarters of these projects, with the majority located in Chile, Argentina, and Brazil.

Pope Leo XIV spent two decades working as a missionary in Peru before becoming Pope. He ministered in Chulucanas, located in the archdiocese of Piura, which contains large copper mining projects. He also ministered in Trujillo, a region known for gold deposits, and his final posting in Peru was in Chiclayo, a logistical hub for extraction industries in northern Peru. Goldfajn said, "He must have seen both sides: the promise, the future, but also the challenges."

Bryan Harris, managing partner at Sabio, a strategic advisory firm focused on Latin America, noted the Pope's personal credibility from his time in Peru. Harris said, "The decades he spent in Peru give him personal credibility and his messaging on mining sets the tone for how dioceses and parishes across the continent will engage with mining companies and projects." Harris, who consults for international mining companies in Latin America, added, "These groups are often the basis of local opposition movements to mining, so the Pope has considerable sway on whether relations are confrontational or conciliatory."

Rare earth processing can involve heavy chemical use, which may contaminate water resources without close monitoring of corporate sustainability commitments and regulatory enforcement. Pope Francis addressed the environmental impact of mining in his 2015 encyclical 'Praised Be,' noting that mining runoff pollutes underground water systems, gold mining causes mercury pollution, and copper mining produces sulfur dioxide pollution.

The 17 rare earth elements are a subset of critical minerals used in smartphones, semiconductors, electric vehicles, and jet engines. Multiple countries classify copper, cobalt, lithium, and nickel as critical minerals for new technologies. The U.S. Geological Survey estimates global rare earth oxide reserves at 75 million tons, with more than half located in China. Brazil holds the second-largest reserves globally. The Vatican did not publish a readout of Pope Leo XIV's private audience with Goldfajn.