Engineering & Mining Journal

AUG 2018

Engineering and Mining Journal - Whether the market is copper, gold, nickel, iron ore, lead/zinc, PGM, diamonds or other commodities, E&MJ takes the lead in projecting trends, following development and reporting on the most efficient operating pr

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Page 82 of 107 E&MJ • AUGUST 2018 81 ing open pits, like Yanacocha or, eventually, Antamina. Another interesting underground project is Glencore's Coroccohuayco, where development work has already started. In light of these developments, different players are already taking positions. Chil- ean company Mas Errazuriz, for instance, expects the Peruvian market to replicate the conditions of Chile's large underground mines soon. Diego Morales, general man- ager of Mas Errazuriz in Peru, said: "In Chile, mining companies look for a full-service contractor. Luckily, in Peru we start to see a move towards that model, with one single contractor that has strong financial capacity and higher safety standards." Mas Errazuriz is executing the diversion of the Asana river at Quellaveco, while also working in Fruta del Norte in Ecuador for Lundin. An example of how the industry is favoring large, integrated underground contractors is AESA, part of the Breca group, probably the largest player in this segment with around 2,000 people working across seven projects. The company has grown by around 20% annually for nearly a decade: "The industry trend is towards consolidation," affirmed Mario Matuk, general manager of AESA. "We take care of a wide range of services, so mining companies can focus their resources on the long-term planning of the operation, rather than having to deal with many differ- ent contractors. Productivity also increases when you have an integrated solution." Increasing standards JRC Ingeniería y Construcción, a Peruvian underground contractor, has grown over the years to provide integrated underground ser- vices. As part of this evolution, the company obtained the triple certification two years ago, and today has six running contracts around the country. Wilder Ruiz Conejo, president of JRC, explained that the compa- ny's strategy is also related to potential diver- sification, considering that JRC's history ac- tually started in construction work: "Looking at the long term, we want to consolidate our growth through integrated underground con- tracts, based on our experience in this field over the last 10 years. Moreover, we are de- veloping related business opportunities, with construction services. This way, we hope to restart doing earthmoving and infrastructure work, as well as other projects in tunnel ex- cavation for roads and hydropower plants." Another underground contractor that has set foot in the country is Byrnecut, through its partnership with local firm San Martín. The Australian company's business plan is to target underground mines that will require production faces of five meters by five me-

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