## "Critical Minerals & Energy: Powering Economic Development" - Keynote Speech by IMF Deputy Managing Director Nigel Clarke

_IMF News, March 13, 2026_

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## Bibliographic details
- Published: March 13, 2026

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### Overview
- Event: Keynote Speech by Nigel Clarke at the Inter-America Development Bank Annual Meetings in Paraguay.
- Date: March 13, 2026.
- Core message: Latin America and the Caribbean (LAC) possess strategic energy and critical minerals assets that can power economic development if complemented by resilience, investment, and trusted partnerships.

### Key facts and statistics
- Renewables account for about 69 percent of electricity generation in Latin America and the Caribbean.
- Oil production in the region: about 9.7 million barrels per day of oil production in 2024.
- Chile, Peru, and Mexico account for about 37 percent of global copper mine production.
- The broader lithium triangle—Argentina, Bolivia, and Chile—holds about half of global lithium resources.
- Across various critical minerals markets, the top three refining countries account, on average, for 86 percent of processing capacity.
- Chile developed LNG import capacity with Quintero (operating since 2009) and Mejillones (since 2010).
- The EU–Mercosur agreement would bring together a market of 720 million people, covering nearly 21 percent of the world economy.
- Economic modeling by the European Commission suggests the EU–Mercosur agreement could help Mercosur exports to the European Union grow by almost 17 percent.

### Major themes and findings
- Global landscape change
  - Two-decade trend: global production and supply chains have become more concentrated, raising chokepoint risks in less substitutable goods.
  - Recent shocks (pandemic, wars, conflict in the Middle East) demonstrate that disruptions in concentrated sectors quickly affect inflation, output, investment, and confidence.
  - Geoeconomic fragmentation is altering trade and investment patterns in strategic sectors, including energy and critical mineral supply chains.
- Opportunity for LAC
  - LAC can reduce domestic vulnerabilities and become a trusted supplier abroad, especially for processed materials rather than only raw inputs.
  - Capturing more value domestically can translate into faster productivity growth, better jobs, and stronger export earnings.
- Resilience through diversification
  - IMF economic modeling suggests targeted diversification can improve resilience while limiting efficiency losses, particularly in concentrated, upstream, and hard-to-replace sectors.
  - Chile’s LNG import capacity (Quintero, Mejillones) is presented as a practical diversification example that strengthened energy reliability.
  - Closed markets increase concentration risk; integrated and competitive supply chains reduce vulnerability and build credibility as a reliable supplier.
- Regional and global integration
  - Deeper regional integration can lower trade costs, reduce frictions, and support regional value chains (e.g., mining in one country, smelting/refining in another, manufacturing in a third).
  - Integration with the rest of the world through deep and comprehensive trade agreements enhances predictability and sourcing options for firms.

### Policy recommendations and priorities
- Strengthen value chain resilience through diversification, not protectionism
  - Pursue targeted diversification in highly concentrated, upstream sectors.
  - Avoid closed markets that increase concentration risk.
  - Promote integrated and competitive supply chains to reduce vulnerability to shocks.
- Enhance regional integration and reduce trade frictions
  - Close gaps in transport and customs infrastructure.
  - Reduce non-tariff barriers.
  - Strengthen trade policy coordination within the region to support cross-border value chains.
- Create an enabling environment for investment
  - Deliver macroeconomic stability: low and stable inflation, sustainable public finances.
  - Ensure predictable tax systems and transparent regulations.
  - Build strong, credible institutions to reduce policy uncertainty and attract long-term private investment.
  - Recognize government and private sector roles as complements: governments provide the policy environment; the private sector supplies capital, technology, and execution.
- Leverage trade agreements
  - Use deep and comprehensive trade agreements (example: EU–Mercosur) to expand markets, increase predictability, and encourage higher value-added exports.

### Expected economic outcomes if recommendations are implemented
- Fewer costly disruptions and more stable growth through more resilient supply chains.
- Movement up the value chain leading to better jobs, higher standards of living, and long-term prosperity.

*Source: Keynote Speech by IMF Deputy Managing Director Nigel Clarke, March 13, 2026.*

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## References

- [Nigel Clarke](https://www.imf.org/en/about/senior-officials/bios/nigel-clarke)
- [PRESS CENTER](http://presscenter.imf.org/)
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_Source: https://www.imf.org/en/news/articles/2026/03/12/critical-minerals-energy-powering-economic-development-dmd-nigel-clark_