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.
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.
Working with local partners can be a cost-effective way of entering a new market but it also carries risk for foreign companies. It is important to take your time to find the right partner and then support them properly to maximize their efforts. Check out our advice.
Mining technology and service companies looking at Latin America need to decide on the best way to service the region. One of the first decisions that companies need to make once they confirm a market has potential is whether they will work through partners or sell directly to the mines.
Southern Copper announced that the Tia Maria project is scheduled to start construction before or by early 2025, with operations expected to start in 2027. This is a big win for the Peruvian mining industry since the project has been the poster child for community opposition that the country has been dealing with over the last decade.
Brazilian law allows a wide range of activities to be outsourced. While outsourcing offers flexibility to companies and even individuals, it cannot be used to avoid Brazilian employment laws and benefits that are applicable to full-time employees.
Santiago
Sydney
Lima