Can you discuss U&M Mineração’s journey and focus on the mining industry?

MC: U&M Mineração has been active for 50 years and has over 25 years of experience in bulk earthmoving in mining. Our major recent challenge has been contributing to the energy transition and decarbonization, aiming for more sustainable mining practices. We operate in major mining states in Brazil, such as Bahia, Pará, Minas Gerais, Goiás and Maranhão, and employ approximately 3,000 people, a number that changes with new projects. In 2023, we managed around 300 million tons of material across 11 contracts and expect similar figures this year. We pride ourselves on our safety record, having gone over two and a half years without accidents, equating to nearly 19 million man-hours worked without lost time injury. This is especially notable given our large-scale operations and heavy equipment. Can you elaborate on the evolution of U&M Mineração’s fleet and equipment?

SM: Our current fleet includes about 250 off-road trucks ranging from 100 to 300 tons and roughly 70 excavators with capacities from 120 to 550 tons. While we previously worked in heavy construction, including hydroelectric dams and barrages, we have shifted focus entirely to mining due to a slowdown in the construction sector. Our equipment fleet is primarily from Caterpillar, Komatsu and Hitachi, and we maintain a high degree of standardization to streamline maintenance and operations, which allows us to manage fewer types of equipment more effectively. What are the current trends and challenges in the mining sector?

SM: The mining sector is witnessing increased demand for critical minerals such as lithium, copper and rare earth elements, alongside iron ore, which remains significant. Trends include fluctuations in mineral prices, such as a recent drop in lithium prices due to lower-than-expected consumption despite rising demand. Challenges include balancing mining activities with sustainability; there is a strong emphasis on minimizing the environmental impact of mining operations and adapting to evolving market dynamics. Key challenges include adapting to new environmental demands and investing in more economical, autonomous and electric equipment. Training and retaining skilled personnel is also a challenge as other industries compete for talent. Our internal training programs are strong and attracting and retaining skilled workers remains a focus. How is U&M Mineração addressing technological and equipment challenges?

MC: We are tackling challenges by focusing on more economical and autonomous equipment. We have two major innovation projects: retrofitting existing equipment with autonomous technology by adding sensors and computers and developing a hybrid truck project that captures and stores energy from braking. The autonomous project, which began in 2018, involves a partnership with Hexagon for system integration, while the hybrid project started in 2020 and aims to have the first prototype tested by the end of this year or early next year. Over 90% of new mining trucks are not yet autonomous, and none are hybrid, presenting a significant opportunity for adaptation. We are working on two main projects: retrofitting existing equipment to add autonomous technology and converting older trucks into hybrid models that capture and store braking energy. Our autonomous project, in partnership with Hexagon, aims to integrate our equipment with advanced systems, while the hybrid project involves field testing of prototypes. These initiatives aim to extend equipment life and improve efficiency and sustainability. How has the recent legislative change affected outsourcing in the mining sector?

MC: Before late 2017, Brazil restricted outsourcing core activities within industries, including mining. The legislative change in early 2018 allowed for outsourcing of internal activities, which was a major shift. This change is relatively recent, leading to broader acceptance of outsourcing within the mining industry. International companies accustomed to this model are better positioned to adapt, while local companies are gradually adjusting to the new framework. What are U&M Mineração’s goals for the future?

SM: Our main goal is to consolidate the growth we have achieved and continue to emphasize safety and quality. We are preparing for our 50th anniversary, which will be a significant milestone. Our focus will remain on advancing equipment electrification and sustainability. We aim to enhance our environmental practices and maintain operational excellence while contributing positively to industry and the planet. Key areas will include safety, quality, and the successful implementation of innovation projects, including hybrid and autonomous equipment.