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.
There has been a race in Chile among Direct Lithium Extraction (DLE) technology providers to reach commercial scale. While Chile remains the world’s second-largest lithium producer, its position is increasingly challenged by Argentina. Albemarle’s US$3.1 billion project is set to be the first DLE project at scale in the country, and if it proves more sustainable than traditional evaporation ponds, it could unlock the next wave of projects and investment in Chile.
Although Brazil has not traditionally been viewed as a major copper producer, that narrative may be starting to shift. Ero Copper Corp. has released the inaugural Preliminary Economic Assessment for the Furnas project, outlining a 24-year open pit operation with the scale, economics, and longevity to position it as a potential cornerstone copper asset in Brazil.
Mining is one of the main drivers of the Chilean economy, and water scarcity is a risk for both existing operations and new mines that will need to be built. The Copper Commission (Cochilco) has been studying water usage in the industry for the last few years. Last week they released their new report, which outlines their projected water usage for the Chilean mining industry between 2023 and 2034.
A great oppportunity for technology and service providers. Antofagasta Minerals has been very bold with deploying technology which are focused on electrifying its mines, automating its equipment, and using sensors and software to improve the various mining processes. Now, Minera los Pelambres, has launched a “Technologies for Competitiveness” challenge, which sets out to search for the latest technologies that will increase productivity levels in all its processes.
As a follow up to the original hydrogen strategy, the government recently released its Green Hydrogen Action Plan which will help direct the industry from 2024 to 2030 – the time frame that Chile has set for itself to become a major hydrogen exporter by the end of the decade.
Argentina has taken a different approach to developing its lithium industry compared to its neighbours, which has it made it an investment destination. As the world’s fourth largest lithium producer, it is expected to triple its output in the near term as new projects are completed and they ramp up to their targets.
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