Gearing up for Growth
Engineering firms look to cement their place in the mining boom
With the Chilean mining industry gearing up with record-setting levels of investment over the next year, the country’s value and supply chains have never been so important, and engineering companies are gearing up to play an even bigger role in mining’s future. To do so, companies are looking at diversifying services, aiming to become trusted partners for some of Chile’s and the world’s largest mining companies. With desalination plants, mills and concentrators being upgraded and introduced to meet the growing demand for copper, engineering could be on the precipice of a golden age.
It has long been a criticism of mining companies that not having proper partnerships with engineering firms leads to projects that run past the deadline and vastly over budget. One example of this was Teck Resources’ recently inaugurated QB2 expansion, which came in at US$600 million over budget due to construction delays. “Projects tend to be most efficient when the company defining the business case executes the project. A partnership approach avoids loss of knowledge between contractors, increases accountability and streamlines communications,” revealed Maria Paz Núñez Cristino, VP Chile for Australian-based engineering firm Ausenco.
In 2024, Ausenco’s Chile office completed the Mantoverde optimization project on time and within budget, marking a significant milestone for the company’s presence in South America.
To counter this, more partnership-based relationships between engineering firms and mining companies are being developed, with contractors entering the process from a project’s initial stages and then often being involved right through its development. Rio Indómito aids mining companies in selecting their engineering and consulting firms, giving it a unique perspective on the hurdles both sides are facing. Mario Baeza, founder and CEO, noted: “Partnership-based relationships enhance project execution by fostering collaboration, transparency, and shared risk and reward. Moving away from purely transactional models encourages early contractor involvement, optimizing design, and reducing rework. These partnerships promote long-term value over short-term cost-cutting, ensuring better alignment of project goals.”
Santiago-based Metaproject works with majors like Codelco, Anglo American, Teck, and Barrick. By proving itself with such large companies and projects, Metaproject now has opportunities to expand to mining markets abroad. “We participated in major projects in Chinalco, Peru, as well as a greenfield exploration project in the Chaco region of Paraguay. We continued our work in Turkey, where the mining sector is highly dynamic, and we also entered Morocco, which has proven to be a well-organized country with great opportunities,” said Manuel Viera Flores, the company’s president.
JRI Ingeniería has been focusing mainly on EPC contracts in 2024, in the hopes of increasing efficiency by providing all these services together and creating stronger partnerships with construction companies to help win larger projects. “Our international expansion is largely driven by partnerships with local engineering firms in countries like Ecuador, Argentina, and potentially in places like Mexico and Peru. We bring our specialized knowledge in mining engineering to these markets while partnering with local companies that offer their strengths, such as in electrical or civil engineering. This collaborative model allows us to adapt to local conditions while still maintaining the high standards that JRI is known for,” revealed Iván Rayo, general manager, JRI Ingeniería.
In 2024, global engineering consultants Wood underwent a large global restructuring of its 36,000 employees. One of the goals of this was to diversify their client base, allowing them to service smaller and midsize companies, making the company more well-rounded for the inevitable increase in the number of mines that will be developed in Chile to service demand for copper and lithium. “Our business has been mostly focused on design, engineering, and project execution. We realized, however, that if we can identify projects in the initial stages of exploration and development, there is work to do in estimating resources, mine planning, design, and conducting studies. These are the areas in which Wood offers the most value to juniors,” said William Lilis, director of business development, minerals and metals, South America for Wood.
As well as diversifying its client base, Wood has also been adapting its geographical reach to new and emerging markets. Lilis commented: “Wood has also been expanding in the emerging market of Argentina with two offices in the country, and whilst up until now they have been focused on oil and gas, we are seeing an increase in interest in copper and lithium projects. Furthermore, we are looking into the Argentinian copper market with clients such as Rio Tinto, Glencore, and the BHP-Lundin Mining JV in Vicuña.”
Celebrating its 50th anniversary in 2024, LEN Ingeniería is expanding and enhancing its offerings, looking to fill gaps outside of mining companies’ traditional expertise to obtain more long-term partnerships with the industry’s key players.
The company reported a more subdued project environment in Chile, a symptom of the need for mining companies to save on capital whilst they wait to deploy the large expansions and investments announced for the next several years. LEN Ingenería has, therefore, adapted its business model, focusing on different areas to help mining companies lower their operating costs. “In copper mining, where transportation costs can be as high as 30% of extraction costs, LEN has focused on designing more efficient infrastructure, particularly on industrial and public roads, which are critical for safe and well-planned logistic operation,” revealed Julián Alvear Fernández, CEO.
“There is a natural opportunity to export Chile's expertise to countries like Peru and Argentina. We have already done lithium-related projects in Argentina for international companies, and opening an office there is a real possibility.”
Víctor Contreras, CEO, Pares&Alvarez
Firms are looking for innovative ways to become partners with mining companies and are signing long-term contracts for future success. R&Q Ingeniería is focusing its efforts on technological innovation to do so, using its proprietary project management system, R&Q+, to be able to monitor an entire project lifecycle. Augustin Cabañas, the firm’s mining manager, outlined: “R&Q+ allows the company to be involved from concept to execution, preventing challenges that could lead to project overruns and costly oversights. This system provides full traceability and centralized information, facilitating real-time monitoring and ensuring project knowledge transfer across different projects.”
A major hurdle to the progress of projects and a particular challenge facing engineering firms is Chile’s lengthy permitting process, which can delay projects before they even get started. Pares&Alvarez, an engineering company, said the last 12 months were its best on record. Their core services are PFS, FS, and environmental impact assessments, as well as permitting management, placing them at the heart of this pressing issue. “Permitting challenges are inherent to the modern world, where requirements are increasingly strict, especially from environmental and community perspectives. New requirements add layers of complexity beyond traditional regulations, meaning we must operate with greater care and explicit, verifiable compliance,” explained CEO Victor Contreras.
Dutch engineering company Arcadis has observed an acceleration of investment in Chile throughout 2023, moving towards project execution in the upcoming years. As a result, the company has shifted its focus from analysis and trade-offs to gearing up for increased construction. “Chile has always sought to have very high standards, with a clear example being the seismic standards that exist here. There are improvement opportunities that could allow us to make the system equally robust to protect communities and the environment while allowing rules and especially much faster times to develop projects,” revealed Luis Soruco, general manager of Arcadis Chile.
To enhance internal efficiency, they developed Arcadis GPT, an AI platform designed to streamline internal processes and assist the company with time-consuming repetitive tasks.
“Despite the more subdued project environment in recent years, especially within the Chilean economy, LEN has continued to thrive by focusing on sectors like mining, which has remained resilient.”
Julián Alvear Fernández, CEO, LEN Ingeniería
Transitioning from being a part of Tetra Tech for over a decade, 2024 saw Metálica Consultores standing on their own and looking to relaunch in time for the incoming mining boom many experts are predicting. Severino Modena, general manager, Metálica Consultores, commented: “There is a general feeling that a massive amount will be invested over the next 10 years, and even the government is working on speeding up the permission process for projects. Investors know that each dollar they invest in Chile could only start giving returns in 10-15 years. Therefore, the risk is enormous. If Chile manages to improve this aspect, private investors will be attracted to the country.”
As investment floods into Chile, now is as good a time as any for engineering companies to secure the partnerships that will last for decades to come. Companies will need to adapt to the market's needs, ensuring they are well-suited for the varied and complex projects in the pipeline for some of the world’s largest mining companies. However, Chile’s bureaucratic and often overbearing permitting process is hindering their progress, and with a new government incoming in 2026, all eyes will be on the reforms introduced as to how the state can help the value chain become more involved in Chile’s largest industry.
“We have been focusing a lot on EPC contracts where we can provide all services together, ensuring more efficiency in our projects. This approach also allows us to create stronger partnerships with construction companies and helps us win larger projects.”
Iván Rayo, General Manager, JRI Ingenería
Article header image courtesy of Candelaria