Maintenance
Increasing the sector’s productivity
Article 22 of the Chilean Labor Code previously allowed for a 45-hour work week, divided into five to six days. The 40-hour bill, effective April 2024, will gradually reduce the maximum weekly working hours to 40 by 2028, aligning with the OECD average. Despite this alignment, Chile's worker productivity, measured by average hourly GDP contribution, remains below the OECD average. In 2020, each Chilean worker contributed US$30.4 per hour to the GDP, ranking Chile 36th out of 39 OECD countries, significantly below the OECD average of US$54.5 per hour. This indicates lower productivity and output per dollar spent on the workforce.
The Chilean mining sector faces additional challenges, including a potential shortfall of 34,000 qualified personnel due to the green energy transition. This productivity challenge compels the industry to seek ways to maximize efficiency with existing resources. Continuous operations are crucial, as stoppages can be extremely costly. For instance, the 44-day strike at Escondida in 2017 resulted in approximately US$740 million in lost production and about US$16.8 million in daily revenue losses. Maintenance companies in Chile's mining industry are dedicated to minimizing stoppages and ensuring optimal productivity.
Technology
Chile is a pioneer in the application and development of technologies, said Ludwig Hecker, CEO of Ferrostaal: “Chile is an extremely liberal economy, and that is a double-edged sword. On the negative side, the industry is not forced by regulation to walk the extra mile when it comes to decarbonization, but on the bright side, Chile is an attractive market to innovate and try new technologies and concepts.”
The main way to increase productivity has been through technology. An example of a technology developed by US-based Flanders is called Wisdom. “Wisdom offers predictive monitoring and vibration analysis for plant equipment, sending this data live to our customers, which means there is less risk of machine failure, so actions can be taken prior to an event of a catastrophic failure as well as extending its useful life and saving operation costs,” said Elizabeth Torrejón, general manager Chile. “Companies trend towards taking predictive measures more than reactive measures, due to the high costs of mining and equipment shutdowns” Torrejón emphasized.
“Nowadays, companies trend towards taking predictive measures more than reactive measures, due to the high costs of mining and equipment shutdowns.”
Elizabeth Torrejón, General Manager, Flanders Chile
Many maintenance firms chose a problem to focus on and make more productive. Veltis LATAM, for example, realized that keeping mining plants free from pollution requires a large amount of labor and poses risks to workers. “To address this challenge, we developed technology that enables remote cleaning, eliminating the need to expose workers to hazardous environments and reducing the amount of physical effort required. This innovation allows us to improve productivity and safety in our operations while also reducing risk exposure for our personnel,” said Marcelo Ocampo, the CEO of Veltis.
One way to meet the labor shortage in the industry is to reduce the number of onsite personnel. Maintenance firm Confipetrol has taken this to another level, allowing professionals anywhere in the world to work with their clients in Chile. “Confipetrol created remote assistance glasses, which facilitate the intervention of specialists from our maintenance engineering and reliability area, whether from Peru, Colombia, or another location, or even in collaboration with external providers, depending on the criticality of the failure. These glasses function like video calls, allowing a specialist to guide the technician in real time, projecting plans or instructions directly into their vision while they work,” explained Jeant Peinado, business manager at Confipetrol.
“In Chile, we face the constant challenge of improving productivity in the mining industry. Aware of this need and our quest for greater efficiency to meet client demands and enhance profitability, we decided to implement the Nexxcon platform.”
Ignacio Pérez, General Manager, Nexxo
Put it on a platform
To monitor the productivity of operations and assets, many maintenance companies have developed proprietary technological platforms to enhance client productivity. Nexxo, for instance, implements its Nexxcon platform to help clients achieve productivity and efficiency goals. “This tool has allowed us to manage data more effectively and in real-time, unlike before when data analysis was delayed. Now, we can proactively identify and address deviations in efficiency, significantly contributing to the continuous improvement of our processes,” said Ignacio Pérez the general manager at Nexxo.
Technological platforms have shown tangible results. “We implemented a technological platform that allows real-time monitoring of the productivity of our mining contracts, providing a clear view of the results achieved,” said Gonzalo Mardones, CEO of Salfa Mantenciones. “In specific projects, we reduced maintenance times significantly, from 36 to 18 hours, resulting in greater asset availability for our clients” Mardones continued.
Equans utilizes Asset Performance Management (APM) software with the same goals in mind. “It optimizes maintenance schedules based on actual asset usage rather than fixed intervals. This technology ensures maintenance is performed precisely when needed, based on the real condition and usage of the asset. It also reduces maintenance hours, which helps with sustainability,” detailed Diego Clavería, chief commercial officer at Equans.
Advancements by maintenance firms illustrate the potential for technology to drive productivity improvements in Chile's mining sector, addressing both current inefficiencies and future workforce challenges.
“The high demand for specialized personnel is a critical hurdle, particularly in Chile, where finding skilled workers in the mining sector is increasingly difficult.”
Diego Clavería, Chief Commercial Officer, Equans
Article header image courtesy of Salfa Mantenciones