How has demand changed over the past year?

Pro Drilling was founded in 2012 at the height of the exploration boom. The company began in exploration, and then entered major mining as an operator for Anglo American and others. In 2013, there was an economic downturn in the mining industry, and we were obliged to diversify ourselves with new clients such as BHP, Collahuasi, and various exploration projects. We began using a diamond rod handling system, the latest technological leap in our industry at that time, and defined a standard for Pro Drilling, regardless of whether or not our clients always required them.

We work primarily in copper, and we have recently entered iron. We also conduct drilling for water purposes, including perforation for water wells. We are a company that can offer the complete package related to drilling. This is an advantage because large mining companies want to work with fewer contractors who can be more efficient throughout the process.

Over the past year we have seen an increase in demand for drilling services in the industry and expectations going forward look promising.

Is the drilling industry adopting new technologies?

Our industry, exploration, is the area with the least technological development in comparison to the majority of other services and activities carried out in mining. This is because the works are carried out in extremely harsh environments and require manual operation and handling. The incorporation of automation has moved slowly in exploration drilling.

The standard has always been that a drilling rig has an operator with two assistants. A few years ago, we transitioned to an operator and one assistant due to local industry demands in other countries. We continue working while waiting for new developments and technology to help us be more efficient; we are always open to trying new technology and contributing to development, but there have not been significant technological advances. There have certainly been data capture and management advances, but not drilling itself.

How did the pandemic impact Pro Drilling?

The coronavirus had a major impact on us because when there are critical situations, exploration is the service that can be reduced or stopped first. The priority was the production of copper from operational projects, but over the past year, we have returned to normal.

On a cultural level, Covid was a significant shift, particularly for the workforce. People got used to being at home and spending more time with family, and many decided to look for new work that situated closer to home. Labor has therefore been a major challenge.

What is the current state of investment in exploration in Chile?

The ore grades have lowered, and the extraction costs have increased, which is a challenge for exploration. Nevertheless, investment in exploration increased by 30% in 2022 compared to 2021, and we expect this to increase over the next few years. We see excellent signals because the large companies recognize that continuing to invest in exploration is the only way to find new deposits to counteract declining ore grades. Unfortunately, new deposits and discoveries are high in the mountains or close to the border, making exploration and the path to production more difficult.

How does Pro Drilling prioritize safety?

First, we have workers who have faith in the company, and second, our clients trust us. We decided to use the diamond rod handling system because rod handling was one of the most critical risks. We can drill holes of 2,000 meters. Therefore, we decided to use the diamond rod handling system as the company standard. Our priority is to utilize tools that prevent harm, provide safety for our workers, provide stability in our service, and benefit our clients. Chile is a benchmark for other countries in terms of safety.

What is your expectation for 2023?

This year, our primary goal was to have 90% of our drill rigs in operation. We have been successful, and currently, nearly all of our equipment is in use. This has been an excellent situation for us, particularly because several of these projects will not be impacted by the winter in the mountains. We only have 20% of our contracts exposed to the winter, so this will be a great year.