A top banker tried to sway Pope Leo XIV on rare earth mining

ROME (AP) — The head of Latin America’s top development bank made a pitch to Pope Leo XIV this week in the face of the Vatican’s call to divest from the mining industry: that the mistakes of the past can be avoided in extracting rare earth minerals to supply a global tech boom.

Ilan Goldfajn, head of the Inter-American Development Bank, met privately with the pope on Friday and asserted the potential of rare earth mining, saying it could be a boon to Latin America provided there are safeguards and value is added locally.

It’s probably not an easy sell. The Vatican for years has taken a firm stand against multinational mining corporations, especially in Latin America and in favor of the Indigenous peoples, whose lands and livelihoods are often ravaged when mining projects come to town.

Goldfajn’s visit, which followed one earlier this year by mining executives, suggests that he recognizes the weight of the pope’s words in the majority-Catholic region, and a desire to sensitize him to the possibility of a better way of doing business. Whether Leo can be swayed is another matter, given his own experience in the region and criticism of the often corrupt deals mining companies ink with governments in the developing world.

Countries have identified dozens of minerals, including copper, cobalt, lithium and nickel, as critical because they are essential for new technologies. The 17 rare earth elements are a subset of them. They’re used in a wide range of products, including smartphones, semiconductors, electric vehicles and jet engines.

“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,” Goldfajn said in an interview in Rome on June 18, one day before his meeting.

“We have exactly the tools to do that,” he added, noting the IADB has a roughly $4 billion pipeline of critical mineral projects in the region, mostly in Chile, Argentina and Brazil, and three-quarters of that amount with private companies. He had just delivered a presentation on rare earth minerals at a finance conference, with an eye on potential European investors.

Mining has a checkered, centuries-long history in Latin America, from forced labor and displacement of Indigenous peoples to deforestation, poisoning of waterways and deadly dam collapses. Foreign companies withdrew much of the wealth from the earth without enriching local populations. In colonial times, silver and gold made its way across the ocean to adorn Catholic churches.

Leo, who spent two decades working as a missionary in Peru, would be intimately familiar with the plight of Indigenous peoples in mining areas and the environmental impact of extraction industries on the land. He ministered in Chulucanas, in the archdiocese of Piura, which has huge copper mining projects, and in Trujillo, known for its gold deposits. His final Peruvian posting, Chiclayo, is a big logistical hub for northern Peru’s extraction industries.

“He must have seen both sides: the promise, the future, but also the challenges,” Goldfajn said of Leo’s time in Peru. He noted that Leo held a private audience with a group of top mining executives in January, which he heard from them had been “very constructive.”

But two months later, the Vatican launched a campaign to encourage divestment from mining companies. At a Vatican news conference, top officials held up an ecumenical Christian network, known as the Church and Mining Network, that is active in particular in Latin America. The campaign seeks to encourage local churches to review their investment strategies and divest where needed, and to share information especially with Indigenous groups about the types of extraction occurring on their lands.

Leo is expected to visit Peru in November, including places where he ministered. In each of the three sub-Saharan countries he visited during his April trip to Africa — Cameroon, Angola and Equatorial Guinea — he blasted the "colonization” of Africa’s minerals by mining companies.

It makes sense for people like Goldfajn to try to engage Leo, even if the pope alone won't move investment decisions, Bryan Harris, managing partner at Sabio, a Latin America-focused strategic advisory firm, wrote in an email.

“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,” said Harris, who consults for international mining companies in the region. “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.”

Harris noted that processing of rare earths can be extremely dirty, involving heavy chemical use that can contaminate water resources without close monitoring of companies' sustainability commitments and enforcement by federal regulators.

Leo's predecessor, Pope Francis, a native of Argentina, singled out the toll of mining in his 2015 environmental encyclical “Praised Be,” noting the pollution of underground water systems as a result of runoff, the mercury pollution in gold mining or sulfur dioxide pollution in copper mining.

Francis said it was “essential” for Indigenous communities to be the principal dialogue partners when large projects affecting their land are being considered.

The Vatican didn’t provide any readout of Leo's private audience with Goldfajn. In a separate audience Friday, Leo met with participants in a conference at the Vatican’s environmental educational center named for Francis’ 2015 encyclical. He denounced the profit-at-all cost mentality of those who seek to plunder the earth “at the expense of the most vulnerable and enhances the risk of dehumanization."

There are 75 million tons (82.7 million U.S. tons) of rare earth oxides around the world, more than half in China, and with Brazil home to the second-largest reserves, according to the U.S. Geological Survey’s most recent estimate.

FILE - A mine operated by Serra Verde Mining in Minacu, Goias state, Brazil, Monday, July 28, 2025, produces rare earth elements, including neodymium, praseodymium, terbium and dysprosium which are essential for the production of permanent magnets. (AP Photo/Eraldo Peres, File)

FILE - A front-end loader transports phosphogypsum in Phalaborwa, South Africa, Monday, Sept. 8, 2025. (AP Photo/Themba Hadebe, File)

The President of the Inter-American Development Bank Ilan Goldfajn speaks to the Associated Press during an interview in Rome, Thursday, June 18, 2026. (AP Photo/Domenico Stinellis)

Peru's interim President Jose Maria Balcazar, second left, is welcomed by Archbishop Petar Rajic, Prefect of the Prefecture of the Papal Household, as he arrives in the St. Damasus Courtyard to meet with Pope Leo XIV, at the Vatican, on Thursday, June 18, 2026. (AP Photo/Andrew Medichini)

The President of the Inter-American Development Bank Ilan Goldfajn speaks to the Associated Press during an interview in Rome, Thursday, June 18, 2026. (AP Photo/Domenico Stinellis)

Pope Leo XIV celebrates the funeral service for late Cardinal Camillo Ruini, in St.Peter's Basilica at the Vatican, Thursday, June 18, 2026. (AP Photo/Andrew Medichini)

The President of the Inter-American Development Bank Ilan Goldfajn speaks to the Associated Press during an interview in Rome, Thursday, June 18, 2026. (AP Photo/Domenico Stinellis)

TYRE, Lebanon (AP) — Israeli strikes on southern Lebanon on Saturday killed at least 16 people, including two children, hours after reports emerged of a ceasefire agreement. The persistent fighting threatened an interim agreement between the United States and Iran to end the war in the Middle East.

Lebanon’s National News Agency said the strikes hit the southern town of Nabatiyeh and nearby villages. At least seven people remained trapped under the rubble, it said.

Mediators were scrambling to halt the fighting between Israel and the militant Lebanese Hezbollah group, after a heavy exchange on Friday killed at least 47 people in Lebanon and four Israeli soldiers.

An Israeli military official said Hezbollah had fired more than 50 projectiles at Israeli forces in southern Lebanon overnight, prompting the military to start targeting the militant group there. The official spoke anonymously in line with regulations. The army said it struck dozens of Hezbollah targets and militants in southern Lebanon, including rocket-launching positions and Hezbollah command centers.

On Friday, Israeli ambassador to Washington, Yechiel Leiter, said on X that Israel “remains firmly committed to an immediate ceasefire” if Hezbollah honors the agreement and ceases hostilities.

On Saturday, Hezbollah said it had committed to the ceasefire but blamed Israel for violating it several times on Friday night. A statement issued by the group's military wing said it would abide by the ceasefire but would also repel attacks by Israeli troops.

Hezbollah and Israel went to war just days after the U.S. and Israel launched strikes on Iran on Feb. 28, with Hezbollah firing rockets and drones at civilian communities in northern Israel and Israel seizing large swaths of southern Lebanon.

The interim U.S.-Iran agreement signed this week has already reopened the Strait of Hormuz, which Iran had closed as the war unfolded — cutting off the global economy from significant supplies of oil and natural gas. The deal also envisages the relaunch of talks on Iran’s nuclear program, a core issue in the war.

Neither Israel nor Hezbollah are signatories to the deal, which calls for a halt to military operations in Lebanon and for the country's sovereignty to be respected. With the fighting continuing, the accord is under threat and U.S.-Iran talks in Switzerland, planned to start Friday, have been delayed, with no new date announced.

Israeli Prime Minister Benjamin Netanyahu has vowed to keep Israeli forces in southern Lebanon until any threat to Israel is eliminated. Hezbollah has refused to halt its attacks unless Israel commits to withdrawing from Lebanon, which Iran says is also a condition of the deal.

A new round of U.S.-backed talks between the Lebanese government and Israel is expected to take place in Washington next week.

A strike on the village of Barish killed four members of a family, parents and two children. In Arab Salim village, a body was pulled from a destroyed house, and in the villages of Doueir and Kfar Rumman, drone strikes killed a person on a motorcycle and a Lebanese soldier. Nine people were killed in strikes in the villages of Qannarit, Sohmor and Shehour.

Plumes of smoke rose into the sky over southern Lebanon Saturday and Israeli jets flew low over the coastal city of Tyre.

The city's residents told The Associated Press they were relieved that Tyre had been spared in recent days but the sounds of Israeli planes reminded them the war is not over. Many doubted a ceasefire — even if agreed on — would hold.

“Our entire lives would change if there’s a ceasefire,” said Hussein Khoshman, a Tyre resident.

Netanyahu's office did not immediately comment on the ceasefire efforts. On Friday, Netanyahu posted on X that, on his orders, the Israeli army had “struck powerfully” 150 Hezbollah targets, killing dozens of militants.

Military spokesman Brig. Gen. Effie Defrin said the Israeli forces were operating in a “forward defense zone” and would continue doing so.

Iranian officials did not travel as planned to Switzerland, insisting that the fighting in Lebanon must stop before the talks can take place. U.S. Vice President JD Vance also postponed his trip.

On Saturday, Iran's Foreign Ministry spokesman Esmail Baghaei told the semi-official ISNA news agency that Pakistan's interior minister will arrive in Iran as part of continued negotiation efforts. Baghaei had said earlier that consultations through mediators were ongoing regarding the next phase of negotiations to draft a final U.S.-Iran agreement.

Because the initial deal was signed digitally earlier this week, the talks in Switzerland were not urgent, and plans were underway to hold a meeting in the coming days, he said.

The talks in Switzerland were expected to focus on Iran’s nuclear program. Tehran maintains it's for peaceful purposes only, though it has a large stockpile of uranium enriched to higher levels that are a step short of weapons' grade. That uranium could be used to build multiple atomic bombs, should Tehran choose to do so, according to the International Atomic Energy Agency, the U.N. nuclear watchdog.

Those talks are expected to be difficult. The 2015 nuclear deal, which U.S. President Donald Trump scrapped during his first term, took more than 18 months to negotiate.

The interim deal gives negotiators 60 days to come up with a nuclear agreement, but that can be extended. It outlines lucrative incentives if Iran does reach a new agreement, including the eventual lifting of all international sanctions and a $300 billion fund for postwar reconstruction.

Iran has already won some concessions. Following the signing of the interim deal, the U.S. lifted its blockade of Iran’s ports and is allowing it to sell its oil freely. The deal also calls for Iran’s assets to be unfrozen — though it’s not clear how quickly.

Mroue reported from Beirut. Associated Press writers Abby Sewell in Beirut and Samy Magdy in Cairo contributed to this report.

Buildings damaged by Israeli strikes are seen through shattered glass from the Jabal Amel Hospital in the southern port city of Tyre, Lebanon, Thursday, June 18, 2026. (AP Photo/Hassan Ammar)

Smoke rises to the sky following an Israeli military strike in southern Lebanon as seen from northern Israel, Friday, June 19, 2026. (AP Photo/Leo Correa)