Can you introduce Hidrogeo Engenharia and the company´s performance in the last two years?

Hidrogeo works in three main areas: Effluent management, mining waste management, and environmental impact assessments.

2022 was a good year for Hidrogeo, with revenue, employees, and projects increasing. For this year, we anticipate a growth of 20%. Our success is largely dependent on the commodities market, and both base metals and precious metals are currently showing promising prices, which usually leads to increased investment by mining companies. We are optimistic and expect 2023 to be another successful year for our company.

What are the main demand trends in the Brazilian mining industry?

We saw a change in mentality among mining companies after the Mariana and Brumadinho disasters. They have increased their interest in analyzing the risks associated with their operations and have invested more in ESG aspects. Companies are primarily focusing on avoiding the use of tailings dams. The industry is turning to the use of filtration systems to dewater tailings. Another growth area in the industry is environmental and geotechnical studies on the physical stability of tailings dams to prevent collapses.

Moreover, in recent years we have observed that mining companies are paying attention to chemical stability, a service we provide. Chemical stability plays a critical role in the safety of tailings dams, as chemical compounds can alter the physical and mechanical properties of the tailings. In order to ensure chemical stability, we first analyze the waste material and then devise a chemical solution or reagent to reduce the impact of the pollutants.

Companies are increasingly requesting surface and underground water quality studies, as well as site impact assessments. However, in this area Brazil falls behind other mining jurisdictions, like Canada. We expect that the mining regulatory framework will improve in the short term since the current Brazilian solid waste characterization standards (ABNT-NBR 10.004) are inadequate for mining.

What is the role of machine learning in water management services?

Part of our job is to identify whether the water is contaminated and, if it is, define where the polluting components are. We must also determine the water flow velocity and direction. Predicting environmental impact is a complex process that requires considering several important variables. However, with the help of advanced tools this data can be processed efficiently and accurately. While we utilize various tools to assist us, the key factor in effectively utilizing them is knowledge. This means having the ability to manipulate data in such a way that our models allow us to predict outcomes and determine the appropriate remediation actions to address our clients´ issues.

How has the water regulatory framework changed in recent years?

Since 2009, Brazil has established environmental laws regarding soil pollution and groundwater quality (CONAMA 420). This law complemented others such as water effluent management (CONAMA 430), groundwater (CONAMA 396), and surface water (CONAMA 357). These regulations have been in effect for a while now, and recent revisions have aimed at reducing the maximum contamination levels. However, the government should prioritize requesting mining companies to conduct environmental and human health risk assessments using higher technical standards. At the end society would benefit from the results of this new type of relationship because the mining sector would be able to prove that all risk associated with it is under control and stakeholders would see this sector with a better understanding.

What are your main objectives for the next 24 months?

Our objective is to enhance the usage of our AQUATEC platform, which streamlines the transmission of water quality data and information from mining locations straight from labs to us and we write the report to our clients. From the reports we can help our clients to evaluate the performance of their environmental control system among other demands. We are also seeking to extend our customer base in the mining sector. Currently, we have 10 clients in our portfolio, but we intend to raise that figure to 30 in the next two years.

Another important objective is to communicate our technical skills to develop studies in mining waste and effluent management, environmental risk assessment, water resources management and mine closure. We strongly believe that Hidrogeo Engenharia is one of the most complete and technical companies in the South American mining market.