Can you introduce us to Armac?

Armac was founded 30 years ago as a service provider and equipment rental company serving companies that rely on heavy machinery in their production processes, especially in industries where safety and reliability are essential, such as mining. Besides that, we also serve steel mills, fertilizer plants, agricultural companies, port terminals, and infrastructure projects. We are the largest company in our sector in Brazil, listed on the stock exchange, and have the scale to offer a reliable solution for even the largest and most complex projects.

Our team currently consists of more than 5,000 professionals, such as mechanics, truck drivers, and operators. All of them are intensively trained in-house and empowered to serve our customers with safety and reliability, considering the different characteristics of each project. In terms of fleet, we have 10,000 pieces of equipment, such as excavators, wheel loaders, dozers, trucks, and many others, ranging in size from 10 to 100 tons.

What differentiates Armac from other similar companies?

We differentiate ourselves by our people-oriented approach, understanding that equipment is just the tip of the iceberg in mining and material handling. We have developed in-house training programs that help our customers safely introduce young talent into their operations, even in remote regions. This approach helps our clients in their mission to improve the lives of families living around their operations. Another differentiator is that we align our interests with the client by charging only for the volumes produced or operational hours; no spare hours or parts are charged. Everything is included in our fixed rates, which brings a high level of cost predictability and savings for customers.

The strong governance and balance sheet of a public company are also an advantage for customers looking for a dependable supplier they can trust to do the right thing and fulfill its commitments, even in tough times.

How is Armac's model aligned with sustainability efforts?

We help our customers create good jobs for the communities surrounding their operations by avoiding importing labor from other regions whenever possible. We do that by attracting young talent to the mining industry and training them intensively so that they can perform at the required level. In addition, our business model is centered on extending the longevity of equipment and reducing idle time to a minimum, both factors have a very relevant impact on the total carbon footprint of the equipment industry. We have also invested in electric equipment for urban operations and are currently analyzing with one mining customer our first project with electric trucks and the electrification of our support fleet.

What are the strengths of Brazil as a mining jurisdiction?

Besides the immense potential of natural resources, especially here in the state Pará, Brazil is a good and stable place to do business when compared to other emerging markets. Brazil has been a democracy for 35 years now, with both left and right governments during this period and independent executive, legislative, and judiciary powers. The business environment has been improving in the past decade, with important reforms recently approved, such as labor and social security reforms. These were signs of the growing maturity of our political system.

Brazil also has an independent central bank with a good track record of controlling inflation over the past decade. The large natural resource industries and our strength in agriculture also guarantee a currency account surplus, which helps stabilize the Real against the Dollar.

Brazil has a strong local supplier base, with local factories for all the main OEM equipment, a large population (+200 million), and a developed local financial market.

What is your strategy for the next 24 months?

We will keep focused on our core business of serving mining customers with safe, reliable, and cost-effective operations. We also want to expand our presence in the north of Brazil, where we are opening branches in Parauapebas (PA), and Manaus (AM).