How has the demand for INCIMMET’s services evolved in the last year?

In 2021, rather than an increase in the demand for our services, we experienced a recovery in our economic activity after an abrupt stop due to the pandemic. Horizontal excavation and mine development continued to be our most requested services. Large contracts for these types of services were made in the years before the pandemic, and now mining contractors are executing the portfolio they won in 2018-2019. This year, many of these contracts will start to expire, and this could motivate clients to start new bidding processes.

What are some of the projects INCIMMET has been working on?

Last year we won a tender to expand our mine development service for Nexa Resources’ Cerro Lindo mine in Peru. We have been working for this client for around eight years, and this tender will extend our business relationship for four years. This reflects the advantages of long-term business relationships for both parties and demonstrates our technical and management capabilities. In addition, we are executing our contracts at Buenaventura’s Tambomayo and Orcopampa mines. We have also done two engineering projects focusing on our mine backfilling specialty; the first was for Cori Puno's Untuca mine in Peru and the second was for Aris Gold's Marmato mine in Colombia.

How does INCIMMET ensure industrial safety in underground mining activities?

Maintaining industrial safety in underground mining is particularly challenging, and it requires a great involvement from the head of the organization. This is precisely what we are doing at INCIMMET. In addition, we continue to work with DuPont, a leading consultant in industrial safety. One of the challenges has been to adapt their methods and recommendations to our reality in the underground mining sector. Our commitment to safety allowed us to win the international ISEM competition in 2021. Now, in accordance with our strategic plan for 2025, we face the challenge of migrating from an independent security culture to an interdependent one.

Is the Peruvian market ready for a single contractor to handle an entire mining operation?

The larger the operation, the less likely it is that there are specialized providers in the market for that level of volume and difficulty. In addition, from the point of view of the mining company, it is risky to put the operation in the hands of a single contractor. Theoretically, it is possible to do all the necessary simulations to take advantage of economies of scale and facilitate the management of the mine through a single contractor, but I think that in practice the sector is not yet ready for this.

In the case of INCIMMET, we are practically the only contractor at Buenaventura’s Tambomayo and Orcopampa operations, two medium-sized mines in terms of volume where we provide a comprehensive solution. On the other hand, we work in Cerro Lindo, the largest underground mine in Peru, where the client has decided to go from one contractor to two, and I think this has been the right solution in this case.

What opportunities does INCIMMET see outside Peru?

Our interest in becoming a regional player is part of our DNA. We started operations in Peru with Peruvian capital, and since early on we began to sell our services abroad. This gave us a deep understanding of mining in our region, as well as of the technical challenges of each country. To date, we have worked in countries such as Argentina, Colombia, Bolivia and Nicaragua. In 2017 we made a strategic investment in Colombia and consolidated our presence there in 2021. While we have always been open to international opportunities, we are now going to look for these opportunities much more proactively. Last year we participated in listings in countries such as the Dominican Republic, Ecuador, Bolivia, Mexico, Argentina and even India.

Can you tell us about the latest technological advances of INCIMMET for underground mining?

In 2021 we obtained two innovation awards. On one hand, we are developing a drone that has a built-in thermal camera with software capable of interpreting the change in temperature of the rocks. Thus, it can predict the places with potential risks of landslides. On the other hand, we have won an award for the development of a robotic arm for drill loading. The sensors make the arm completely autonomous in placing the explosive and the detonator. In 2022 we will consolidate these technologies with the aim of reducing people’s exposure to risk.