Sneak Preview: Mergers & Acquisitions in Mining Tech with Ivan Gustavino
In this sneak preview, Ax Legal’s Managing Partner Cody McFarlane speaks with Ivan Gustavino, Managing Director at Atrico, who has advised over 100 high-growth companies in mining, industrial tech, and software. With M&A activity heating up, Ivan breaks down what investors and buyers really look for in mining technology companies today.
When I first set foot in Latin America over a decade ago, I was mesmerized. The region’s vibrant culture, dynamic markets, and immense business potential captivated me. Yet, while companies were eager to enter the region, I was surprised by how many failed. They struggled to navigate an unfamiliar business environment, often stumbling over their own missteps while overlooking critical legal, commercial, and cultural differences.
Artificial Intelligence is rapidly transforming industries worldwide, and Brazil is no exception. As forward-thinking businesses increasingly integrate AI into their operations, understanding the evolving landscape becomes imperative. By aligning with evolving regulations and adhering to trustworthy AI principles, companies can position themselves as leaders in the Brazilian market.
Today, the mining industry is experiencing a rapid digital transformation, where nearly every product and service supplied to mines incorporates a substantial technological element. For suppliers, this shift underscores the importance of carefully managing intellectual property when contracting with mining clients.
Peru is a prime destination for mining suppliers due to the USD$55b project pipeline. As the second-largest producer of copper globally, Peruvian miners have significantly increased their investments in advanced technology, equipment, and services, making the country an attractive market for suppliers. As we approach 2025, several projects are worth watching closely, as they have the potential to begin construction in the near future.
The Chilean mining industry has been grappling with significant challenges over the last few years but is now entering a transformative era of mining investment potentialy growing its project pipeline to over USD$80b. This year there have been major announcements including $13.7 billion from BHP, $7.57 billion from Antofagasta Minerals, and $7.5 billion from Freeport and Codelco to expand El Abra.
While many mining companies are advancing with the easier, more accessible opportunities for reducing emissions, the challenge becomes significantly more complex when considering the entire mining value chain. Scope 3 emissions are just starting to receive more attention from mining companies. It is by the far the hardest to reduce because these emissions stem from services and products provided by their suppliers.
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