Innovation

The Artesiga project is based on two substrates: the commitment to do things well and the need to find another magnesite deposit. The current deposit, "El Quinto" is going to be exhausted, and in order to maintain jobs and continue providing investment, services, and wealth to the community of the valley, it is necessary to find another mine: Artesiaga.

It’s fundamental to be aware of what the mining activity involves. The mining activity consists in obtaining minerals through processes of excavation of the land, which generates great disturbances in the landscape. This is why many people wonder why the need to open a new hole in Artesiaga (an environmentally protected area “RedNatura2000”) and not in any other place.

After investing more than 6.5 million euros in carrying out more than 500 land scans, the result is conclusive, there is no other alternative to Artesiaga. The importance of developing this project lies in the fact that the mining activity in the area can be projected for another 25 years, making it possible for this neighborhood to survive, maintain the jobs of the other neighbors, and create new job opportunities. In fact, the valley cannot survive without the mine.

What does the project entail? Firstly, regarding the economic and social axis, the Artesiaga project implies: making it possible for families to stay in this rural area, which is severely affected by depopulation, creating jobs, wealth, and well-being in the area; maintenance of employment (as an industrial engineer in the area, it creates wealth and well-being in the valley); improvement of infrastructures and services, etc. Regarding the environmental axis of sustainability, the Artesiaga project entails proper planning of extractive activities. This can actively contribute to the conservation of biodiversity. This specific point marks the difference between this mine and others in the world. The innovation truly relies on the fact that the excavation project is not finished until MAGNA has restored the area where the excavations have happened, restoring the ecosystem that was there.

The restoration plan that MAGNA wants to carry out in Artesiaga is a plan that it has been developing in recent years at its Zubiri site (which only has a few years left). And it's a plan that works.

This plan consists in covering the excavations once the magnesite has been extracted. Once the holes are covered, the trees, plants, shrubs, and all kinds of flora that were previously there are replanted. Such care is taken by the experts in carrying out the restoration that the soil is even richer after the excavation than it was before. The second step is to return to the ecosystem the level of usual fauna. But the best thing about this plan, and about the mining activity, is that it is being done little by little, in phases. In each phase, only one area is worked on and when it is finished and restored, the mining activity moves on to the next one, and so on: excavation and restoration continue. This means that at no time is there an abandonment by the animals and flora in the area. In fact, as MAGNA has been taking care of the environment for so many years, it knows perfectly the species that inhabit the valleys and dedicates special care so that they do not suffer.

But how do you know that this innovative area restoration project really works? Since MAGNA has made a public commitment to responsible business, among other things, and is driven by a strong will to do things right, it tested the effectiveness of its plan through an impartial and completely transparent method. The test of whether the mining activity was damaging the environment or not, was carried out by one of the most active enemies of the mining industry: NGOs!!!! (Plegadis, being the video about biodiversity on the firm’s web page exposed by Beltran Caballos, a member of the just mentioned organization). MAGNA is so convinced that its activity does not harm but rather can protect its environment, that it had no problem letting the truth be known: that they were doing things right. Not only had the natural level of fauna and flora typical of that area of the Baztán Valley been maintained, but the species had increased in number, and those that already inhabited there became even more numerous, due to the richness of the soil and the habitat that MAGNA had helped restore. And this study was carried out by experts from the association, each one in a different species, and whatever the results were, they were going to make them public.

Furthermore, MAGNA also takes steps to avoid other negative conditions. For example, regarding the visual impact of the project, they make sure that it is only visible from nearby peaks and in no case from any town. In addition, big efforts are made to reduce noise pollution, and waterways nearby are maintained in great condition.

Inspiration

On the day of the interview, a clear idea that all members of the group had was the following: we were all profoundly amazed by Rosa’s sincere dedication and effort. What was even more shocking was her firm alignment with the business and its projects (remember she is the head of consulting for many important aspects of the firm). When asked what surprised, and surprises her most about the company, she literally expressed: “their truthful belief of doing things right”. Even if this introduction may seem a bit off-topic, we could not resist flashing light upon it.

Having said this, it is quite remarkable that from the firm’s birth, they have had a real worry about being an agent that generates wealth, that thinks about the environment that surrounds them, and tries to make inhabitants of the region real stakeholders that positively participate in their daily life. In 1945, this was already part of their motivation, and unsurprisingly so it is today. But, why has the Artesiaga project been born? As the compromise of the firm with the Community of Navarre, ecosystem, workers, businesses and other affected people is solid, they also had to be realistic. MAGNA decided to examine the capacity of their actual mining sites, and after that, they found out that the extraction capacity would not last for more than a decade from now. Consequently, the company has taken serious action and has done more than 500 sonar scans in the region, and they found that only in Artesiaga there are more magnesite sites.

Therefore, in order to maintain the workplaces (232 direct jobs) and not have to make another huge investment in transportation and the formation of new workers, they have decided to expand here. Furthermore, before launching this project, the inhabitants of the regions have been thoroughly informed and cared for (during several years, over 16 years old were sent the information about the new mine, its impact, duration, restoration plan, compromise with the people…), and unsurprisingly, the project is having a major back up (73% of the surveyed say that they believe that the project will have a positive impact).

Overall impact

As previously stated, these targets in helping the community and the environment had already been looked for since the creation of the company. However, some are acquiring favorable and specific points in their actual mining facilities in Eugui and Borobia, while others are goals for the future and less evident today, but they are the goal with the launch of the Artesiaga project.

Specific data that the company openly shares with the public, states that they have already contributed to improving biodiversity by planting more than 15000 trees and restoring more than 40 hectares of land, where fauna can keep living and flora can embed itself with human help.

Workers in the company, including subsidiary businesses, are 275, with an average age of 43 years, and 12 years of working experience in the company. All this data shows the heavy importance that the firm gives to its employees, the investment it makes in their formation is also crucial, and the wealth generated to the community that surrounds the business is also tremendously substantial.

The Artesiaga project will bear an investment of more than 18 M euros. As the main dwellers of the place are cattlemen, the company has made a big effort to inform them properly of the dimension and impact of the project (more than 8000 people that live there and are over 16 have been contacted). Consequently, as in the following 25-year period the excavations will represent a decrease in the grazing areas, Magnesitas Navarra S.A. has signed a contract to give back and restore many hectares of land. Digging more deeply, the specific plan is being conducted with the approval of the local men, thoroughly explaining to them the actual state of the grazing land, and the transformation that their lands will have in the future (precisely going in the plan from year -5 in the setting of the mine to year 25), and illustrating the land loss due to the excavations, but also the pasture land reconverted and the newly planted ones. In balance, acquiring in Alerces, Egurtegi, and Okoro an extension that represents 133% with respect to the actual site (now 490.83 hectares, then 655.97 hectares).

Even more, one of the products that is obtained with the extraction of magnesite, serves as natural minerals to feed and adequately maintain their animals.

We are expecting to receive the data on the SROI (Social Return on Investment) calculated for the CSR Steering Committee, regarding the past triannual agenda (2020-2021-2022). When we get this data, we will update it.

Business benefit

Nowadays, the company exports its resources and components to over 60 countries. This effort consequently has provided them with a revenue of 90 M euros. In order to see the beneficial aspects for MAGNA of their present and future activity, we will focus on two points.

In the first place, all the efforts that are being made in their actual mining facilities such as replanting trees, maintaining an adequate habitat for the life on land by the studies conducted on the wildlife in place and their needs, the wealth creation and business opportunities to the people that live near the mines in the council of Eugui and also in Soria (both the direct 232 jobs, and the indirect ones, to cover the daily needs of all the in site workers). The objective of MAGNA is to continue respecting all the stakeholder's interests in their present workplaces, while transferring them step by step to the new mine in Artesiaga, enabling MAGNA to continue being this crucial element of the supply chain of many markets, with the extraction of approximately 600 000 tons of magnesite every year.

Then, focusing on the project of Artesiaga, it has been calculated that it will need an investment of around 18 M. What does the company expect to get from this new launch? Firstly, to continue their main activity in the same region where they started 77 years ago. This is quite important as the firm in the area is already well recognized and known (“another neighbor of the Baztán valley”), accepted by most, and seen as necessary by many families and inhabitants. All this partially explains the effort made on the more than 500 scans, with a cost of 6,5 M euros, done to find new deposits of magnesite in the same region. Also, the fact that moving to a different community or country, would imply a huge investment in bureaucracy, hiring, and formation of new employees, new land scans, transportation of all the heavy machinery…

In economic terms, it also grants them the possibility to keep doing their business for quite a wider period of time, as the reserves in the mines of Borobia and Zubiri are not inexhaustible, and are expected to end probably by the end of the decade. The extraction duration expectancy of this new site grants them 20-30 extra years of their activity.

Social and environmental benefit

Again, as previously mentioned, and implied in the above title, the activity and innovations of MAGNA suppose actual and potential gains to the company and the people and environment that surround it.

The biosphere in place is a key element of their activity. Wild animal and plant life were there from the beginning, are tried to be maintained during the mining excavations, and will toughly try to be preserved adequately and restored after all the processes (being also realistic and understanding that some excavations will persist, which has been clearly exposed to the dwellers of the Artesiaga Valley for the new mine).

The big investment in environmental care (3 M euros), is also reducing the emission of gases. In the past three years (2020-2022) there has been a reduction in the emissions of SOx and NOx of 50%, and a reduction of the CO2 emissions of 5% (based on the emissions produced in 2013). However, not much more can be done in this category, as some quantities are essential in their natural extraction process. That’s why the effort is also being promoted in the awareness of workers and personnel, to reduce their carbon footprint. Evidently, all these measures and efforts that are born from the real way of working of the firm, will continue to be at the heart of the work in the excavations and restorations potentially made in Artesiaga.

Finally, the most benefitS from the new Artesiaga project went to the workers, and the inhabitants around the place, as the activity will generate a lot of wealth, and jobs will be maintained for a quite long period of time, therefore sustaining many local people for more time. Additionally, there is a new idea of enabling better health care services in the area, which is a direct positive effect, and the telematic formation to the beneficiaries in order to efficiently obtain it will also suppose another gain. Also, local suppliers will have a clear benefit from this innovation, as it has been calculated that MAGNA every year has 15.5 M in expenses in transportation, production of infrastructure, tools, and materials, which are mainly SMEs settled in Navarre.

Interview

Rosa Jaso Litago, Senior Managament Consultant at JPI, the consulting group head of the Sustainable Agenda Project of MAGNA-Magnesitas Navarras since 2018