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 companies begin operations in Chile, they often start with a small local team. Given the geographic distance and significant time differences between Chile and head offices located in other countries, local staff often operate with minimal day-to-day oversight. One common oversight in the early stages of incorporating an entity in Chile is neglecting corporate governance. However, the way powers are granted in the beginning can significantly impact the company’s operational efficiency and the protection of foreign shareholders.
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.
While many business executives understand the basics of how AI works, there is still a gap in knowledge that make it difficult subject to discuss in detail. AI’s rise means more than just keeping pace with technological advances; it’s about understanding the foundational concepts and principles that underpin these systems. These technical aspects – once the domain of data scientists and engineers – now intersect with law, ethics, and business strategy.
One of the key factors for foreign mining suppliers to succeed in Brazil is establishing a local presence. In a market as complex and large as Brazil, simply selling products from abroad is often not enough. Having a physical presence in the country is essential for building trust, providing timely support, and ensuring long-term success in the mining sector.
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