The world is more connected than ever, and mining technology and service companies are no exception. As they expand their reach globally, they need to follow their clients to new markets, from a copper mine high in the Andes to the icey cold winters of Northern Canada. When exploring new markets, it’s the classic “chicken or egg” dilemma: You want to see success before committing to the expenses of a local operation, but as soon as you start generating revenue, the risk of being classified as a PE increases.
Teck Resources has emerged as a leading copper producer focused on growth. It started some years ago as it acquired and advanced base metal projects in both Peru and Chile. It now has one of the best copper pipelines out of any major producer.
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.
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.
BHP’s bid to take over Anglo American is for the large part about increasing copper exposure. We take a deeper look at Anglo’s Latin American operations to understand how they play into BHP’s strategy to acquire more copper production.
The Peruvian Energy and Mines Ministry (Minem) recently released their updated forecasts on the project pipeline which now consists of 51 mining projects that include an investment of US$54.5 billion. We outline the new projects added to the list this year, as well as those that are projected to go into construction for 2024.
Mining suppliers use subcontractors for a variety of reasons in Peru. For instance, installations of sensors or equipment at a mine site, maintenance and on-going support, or other technical equipment/services that are needed to support the main contractor. However, companies can find themselves in trouble if they do not understand the intricacies of how subcontracting laws work from both a legal and practical perspective.
Santiago
Sydney
Lima