Pipes and Valves
A flood of business driven by underground mining
As water management continues to be central to effective mining operation, the pumps and valves segment is gaining significant and lucrative business. This demand for high-tech and innovative solutions shows no signs of slowing as Chile’s drought continues into its 14thyear. At the end of 2021, more than 50% of Chile’s population lived in an area with severe water scarcity. Chile is the only country in the world in which the constitution defines water rights as private property, and the intense privatization of continental waters was a factor in the 2019 civil protests. For the mining industry to have good relations with local communities and retain Chile’s position as a mining country, reducing consumption of continental water is essential.
That being said, mining is not even close to the largest consumer of water. As of 2022, 59% of Chile’s water resources were dedicated to forestry, which generates only 3% of Chile’s GDP. The mining industry has an opportunity to improve its communication with the general public, emphasizing not only the relatively low levels of water consumption compared to economic contribution, but also the myriad ways in which the industry can and intends to support the development of water access.
“Mining companies demand performance, wearlife, and energy efficiency in their pumps.”
Martin Brenner, Regional Managing Director, Weir Minerals
Central to this shift is the strong pipes, valves, and wear protection industry. A central element of lowered water usage is operating more efficiently and reducing water loss. The industry continues to advance, offering innovative solutions that support closed water system, ensuring that not a single drop is wasted. This is important in terms of environmental friendliness, and also in terms of cost – water is a major area of expense for Chile’s mines. To meet this need, Valmet has developed an extensive line of flow control equipment for valves, including software that allows for precise flow control. Gonzalo Silva, regional manager flow control business line at Valmet, stated, “Valmet has focused on leakage control, which can cause environmental impact and can lead to a loss of money in the process.”
The importance of the pipes and valves segment is also increasing as mining moves underground, dramatically increasing the exposure of mining to flooding risks. Flooding in underground mines has the potential to be catastrophic in terms of safety. “Open-pit mines have a significant safety advantage regarding exposure to flooding risks,” said Rodrigo Sosa, CEO of Sulzer Chile, which is seeing growing demand for its pump equipment as mines increasingly expand underground operations. “When a mine has people working in a tunnel, the company must ensure their safety. As mining moves underground, mining companies must adapt to a different risk profile, and flooding is one of those risks.”
“Sustainability is a driver for everyone in the industry, and every company has individual targets. We have firm commitments to gender equality signed with the Swedish Embassy, and we are focusing on developing the presence of women in our firm and executive positions.”
Carlos Lahura, Managing Director Andean Region, SKF
An ocean of opportunity for pipes and valves
Valmet has increased its presence in Chile. In 2022, Valmet opened an office in Antofagasta, allowing it to work in mining operations such as Collahuasi, Escondida, and Centinela. Valmet, aware of the opportunity in desalination, is actively working on new technological developments to adapt their valves to meet the needs of the segment. Silva identified the growing desalination industry as a major business driver: “This is an area of great potential. However, this process requires special equipment with high corrosion resistance, which translates to higher input costs.”
Sulzer, too, is moving strongly in the desalination segment. The company supplies desalination plants with equipment including pumps, filters, and monitors, out of its Chilean operations, which serve as the company’s hub in Latin America. Transporting and utilizing freshwater is simple because pipes and valves can be constructed out of common materials. “Corrosion is the greatest problem encountered,” said Sosa. “Seawater requires corrosion-resistant equipment materials such as duplex, super duplex, and austenitic cast steels.”
The segment has even greater future demand to look forward to, as future projects are expected to increase current desalination capacity by 130% by 2031. 66% of the copper industry’s water consumption in the Antofagasta region will be supplied by desalinated water, with the region having the most desalination plants in the nation.
Reinventing the mining industry
A focus on safety and sustainability
“In the public consciousness, mining is seen as destructive. When considering areas to work, entrepreneurs think of industries such as retail and food rather than mining. Mining is in the process of reinvention.”
David Alaluf, General Manager, Chile, Endress + Hauser
“Over time, we have seen the need to expand into other areas of Chile through existing and new clients, as well as new markets. In 2010, our tools were instrumental in the rescue of trapped Chilean miners, accurately mapping a mine’s geospatial location when no other technology could.”
Orlando Ramirez, CEO, Stockholm Precision Tools
“Open-pit mines have a significant safety advantage regarding exposure to flooding risks. When a mine has people working in a tunnel, the company must ensure their safety. As mining moves underground, mining companies must adapt to a different risk profile, and flooding is one of those risks.”
Rodrigo Sosa, CEO, Sulzer Chile
“In the past year, one of the things that has changed in terms of safety has been respiration. After the pandemic, there is a greater understanding of respirators and masks. Breathing protection is incredibly important in mining. Every mine has silica dust in the air which can give silicosis, a very serious illness.”
José Sanzana, Regional Business Leader, 3M
“It is vital that we, as a country, focus on the specific steps taken to develop the country economically and identify the sustained investment required to take advantage of growth potential.”
Jaime Balboa, CEO, SCV
Article header image courtesy of Valmet Background image courtesy of Pampa Metals