Underground Momentum
Constructing the next generation of mines in Chile
As copper prices remain at record highs, mining companies are looking to expand their projects, both horizontally and vertically, in order to capitalize on the economic gain offered by such a favorable market. For some companies, this means going further underground than ever before, but for others this entails a much more complicated process of transitioning from an open pit to an underground operation. This presents a unique opportunity for Chile’s construction companies, all vying for multi-year, multi-million-dollar contracts to build underground and open pit infrastructure that will extend mine life and keep mines safe for workers entering these new areas.
Such an opportunity does bring challenges, but these can be overcome if construction companies are able to put to use the wide range of technologies and modern equipment available to them to make their projects more efficient, safer and more sustainable. “The mining construction sector in Chile is facing several key challenges. Chief among them is the need to improve efficiency and productivity by innovating processes and adopting new technologies, many of which originate from outside the mining sector,” said Caroline Vender, CEO of Sigdo Koppers.
2024 was a year of consolidation for the company, in preparation for the boom in mining construction set to take place. Sigdo Koppers prioritized internal growth and strategic planning to prepare for the challenge ahead, and one of the keys to meeting this challenge will be the use of technology.
A major player in the underground construction sector of Chilean mining is STRABAG ZÜBLIN, which draws on its experience in Europe and other sectors, for example building the longest tunnel in the world in Gotthard, to be a one-stop-shop for mining companies. The company has been impressed since entering Chile of how technologically advanced mining operations are. Mario Theurl, managing director, commented: “Chile meets all the requirements to lead in technology and has all the basic conditions to seize the opportunities for adapting mining to the modern world. Many companies, such as Codelco, but also the private mining in Chile are open to adopt new technologies and can serve as an example for other players in the world-wide industry.”
One of the key new pieces of equipment being deployed currently in mining construction is the Tunnel Boring Machine (TBM). Whilst the technology has existed for several years, the requirements of Chilean mines now warrant its widespread use, with construction companies reaping the benefits of safer and more efficient projects. “In the future, I believe that mechanized tunnelling and TBMs, which have a lower carbon footprint than conventional tunnelling, will have an impact on the entire mining industry. Everyone in the industry will have to work together to bring these technologies into the mainstream, as their positive impact on the world mining sector cannot be underestimated,” continued Theurl.
SKAVA Consulting is one company that has already used a TBM in the field in Chile, both at greenfield and brownfield underground developments. At Chuquicamata, a mine that transitioned from open pit to underground operations recently, SKAVA Consulting has worked on two projects using TBMs. Juan Pablo Merello, general manager revealed: “One project delved into building up the accesses to the mine, and now we are working together with Codelco in a pilot project concerning TBMs, advising them on the design of the machine for it to have a small radius of curvature to succeed in carving the galleries of the mine.”
The future of the TBM is promising with major mining companies putting the fate of their projects in the hands of this technology. “Codelco expects this to be a feasible option for all mines. All surface mines, particularly in Peru but also in Chile, have plans to expand underground due to lowering grades,” expanded Merello.
Another company working on a contract at Chuquicamata underground and implementing technologies to complete it is Master Drilling, which acquired Chilean innovation company Konec in 2024 in order to integrate advanced technology into its offerings. Master Drilling is introducing a Mobile Tunnel Borer (MTB) to its fleet. “The main challenge is the high initial investment and the learning curve associated with adopting new machinery. Productivity may initially be lower as workers adapt to the technology. However, the long-term benefits far outweigh these challenges. Our MTB enables continuous mining operations, unlike traditional methods that require stopping for blasting, ventilation and material removal,” outlined Fernando Vivanco, Master Drilling’s general manager.
Construction company Besalco is working in consortium with Master Drilling. “In the case of Master Drilling, its advanced machinery and expertise in drilling complemented our civil works capabilities. This type of partnership allows us to tackle larger or more technically challenging projects,” detailed Paulo Bezanilla Saavedra, general manager of Besalco.
Like their collaborators and other construction companies, Besalco is looking to implement technologies across its wide range of services, although this has not been possible yet. “In construction, we face limitations in automation due to the unique and non-repetitive nature of the tasks. However, in machinery operations, we have implemented remote-controlled equipment, particularly in hazardous environments,” Bezanilla Saavedra elaborated.
With expansions and billon-dollar projects heading towards execution in 2025, such hurdles will need to be overcome and technology will be crucial in doing so. “The implementation of technologies, particularly in fleet control and remote operations, ensures that we stay ahead of industry standards in terms of equipment reliability and safety, which is critical in large-scale mining operations,” said Guillermo García Cano, executive director of Besalco.
Outside of TBMs, other branches of construction are also adopting new technologies to help with the complex array of projects currently in the pipeline. Flesan is a national leader in dismantling and demolition and recently developed the Flesan Minería division to bring more of a focus to the company’s mining services. Michael Chait, general manager, noted: “Currently, Flesan Minería is advancing four major innovation projects, selected from an initial portfolio of 19, based on their impact and scalability. The company is also actively pursuing large-scale funding through CORFO, reflecting its commitment to innovation and industry-leading safety standards.”
Through CORFO, the Chilean government is encouraging participation in technology and innovation across the mining industry, which is a positive sign for construction companies already incorporating it.
TECHINT E&C is currently involved in an interconnection project between Quebrada Blanca and Collahuasi, and has established two new corporate directives focused on digital transformation to enhance efficiency as the industry heads towards a future with more complex construction needs. “Our primary vision is to become more productive and capable of handling multiple large projects simultaneously. By leveraging technology, we aim to provide mining companies with more flexible and efficient project execution capabilities,” explained Claudio Perillo, TECHINT E&C’s CEO.
As well as using technology to improve efficiency, companies are looking to harness the capabilities of innovation to improve other areas of the construction business, such as safety. Echeverría Izquierdo Montajes Industriales (EIMISA), is incorporating orbital welders and automated welders into its current projects to keep as many workers out of harm’s way as possible. Dario Barros, the company’s CEO, discussed: “In terms of safety, we have moved from reactive to predictive safety, using digital tools to identify risk early. A clear example was the early detection of low compliance patterns in the field, which allowed us to implement corrective actions before incidents occurred.”
Mining is an evolving industry, with its construction sector on the precipice of a new era thanks to equipment and technology breakthroughs. To reflect such changes in the sector, companies are rebranding to bring technology to the core of the business. Included is this trend is Syncore, which started life as Promet Montajes before a rebrand in 2024. “We sought to modernize our brand and align it more closely with innovation, a central pillar of our identity. Our core value, ‘We Challenge Ourselves,’ embodies our commitment to disruptive thinking and continuous improvement,” emphasized Gastón Rubio, CEO, Syncore.
The company has won awards from APRIMIN, Codelco, Albemarle and Anglo American, citing their use of Building Information Modelling Technology as a key differentiator in the market.
“Mining clients want projects that mirror previous successful projects and technology with a proven record. Codelco is starting to put a lot of faith in TBM technology as they want zero exposure to accidents in their mines.”
Juan Pablo Merello, General Manager, SKAVA Consulting
“Chile's mining sector continues to evolve, with expansions planned for projects like Los Bronces, El Abra, and others. The potential integration with Argentine mining districts could further enhance the region's mining capabilities.”
Claudio Perillo, CEO, TECHINT E&C
Placing technology at the heart of their company is also familiar to the STRACON Group, which operates the STRACON Technologies branch focused on operational technologies, digital tools and communications. STRACON expanded into Chile in 2022 through the acquisition of Ameco and has been growing market share in mine construction and expansion ever since. “Our added value lies in the integration of services and the incorporation of technological innovation through STRACON Tech. Early involvement is key. We participate in the planning phase to optimize fleet design, improve project timelines, and reduce overall costs,” explained Mario Maureira, business development manager, STRACON.
Steve Dixon, the STRACON Group’s CEO, added: “Our structure enables us to deliver engineering, construction, operations, and technology solutions under a single umbrella. This integrated approach gives us the flexibility to tailor solutions to each project while ensuring consistency and efficiency throughout all stages. It also facilitates knowledge sharing across teams and regions, giving our clients access to the full breadth of our expertise.”
On top of new technologies and equipment, construction companies are bringing new solutions into the Chilean market from abroad in order to secure contracts from the nation’s largest mining players. INCIMMET, a Peruvian-owned company specializing in mine backfill solutions, entered the Chilean market in 2024, as backfill is only just beginning to become popular due to the nature of deposits. “You have to remember that each country adapts its mining methods to its own geology and production needs and that there is no single backfilling formula: you must understand the terrain, production, and available resources. It also takes constant innovation, quality assurance methodology, and testing of new materials to improve the whole process,” highlighted Eduardo Cossio Chirinos, INCIMMET’s CEO.
Technology and groundbreaking equipment are changing what is possible in mine construction. These developments are much needed, as the current landscape is demanding more innovative solutions than ever before. Mines are going deeper underground, this much is unavoidable, but what can be avoided are unnecessary risks and unforeseen problems, all of which technology can help predict and thus prevent.
“We believe innovation must be sustainable and profitable, which is why we launched a structured innovation strategy and appointed a Head of Innovation. Our EPC truck shop project is the first of its kind to implement Building Information Modeling (BIM) across all phases.”
Gastón Rubio, CEO, Syncore
“Mining has become a strategic cornerstone for Flesan. What began as a modest initiative has grown into one of the group’s most significant business units. Flesan Minería has also expanded into Peru, securing contracts with top-tier mining companies such as Barrick and Antamina.”
Michel Chait, General Manager, Flesan
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