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.
The potential of the Peruvian mining industry is attracting many foreign companies to the market who are looking to provide equipment, technology, and services. It also means that companies need to adapt to new labor laws which are quite generous to workers in comparison to North America or Australia. One of the specific areas that companies need to consider when doing business in Peru is is how employee profit sharing works.
Peru has been an exciting market for equipment, technology, and service providers over the last few years. There are concerns about a lag in new projects due to community issues, slow permitting, and political unstability. We compiled announcements and updates that came from the speaking sessions that took place last week during Perumin 36.
Many technology and service companies are entering into Peru and winning new work. It is important for international companies to understand how contracts and specific clauses are dealt with in each country they are operating in. We have provided a brief guide of some of the most important clauses.
Mining technology and service companies are looking at Peru for good reason. The country has a significant number of operational mines that are investing in new equipment and technology. As suppliers develop new opportunities in Peru, they will need to decide how they will service the market. Understanding the incorporation process and timeframes is an important part of the process.
After a long sales cycle, the immediate focus for many mining technology and service providers is simply securing or being awarded the work but intellectual property is business-critical and should be treated as such. Mining Suppliers need to ensure they have well drafted clauses that protect their intellectual property while also often giving them the ability to use the data collected to improve their solutions.
Teck’s copper project pipeline keeps advancing. The USD$1.2B Zafranal copper project in Peru recently received environmental approvals paving the way for final engineering and construction approval. Check out our project spotlight for an overview.
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