What have been the main developments for Progesys over the past year?

2023 was a big year for Progesys with a lot happening across all regions in Canada, LATAM, MENA, and Asia. The company was involved in several important projects. As project management consultants delivering PMC contracts, we oversee capital projects development and execution. From initiation, management of feasibility studies, setting up execution and contractual strategies, to construction management and the transition to operations, we serve clients in many industries. Progesys expanded its operations in Asia in 2023, with new projects in Mongolia and Indonesia, inaugurating, in November, new offices in Jakarta. Can you elaborate on the work Progesys has done with Oyu Tolgoi in Mongolia?

In 2018/2019, Progesys was working on both above-ground and underground facilities, but currently, the main focus is on the ramp-up and commissioning of the underground facilities, to deliver full production by 2025. Our two-year contract began in November 2023. Today, we are on schedule to complete the work on the pre-operational verifications, commissioning, and startup of the facilities for 2025. What commodities are currently driving growth for Progesys in Québec?

In Québec, we continue to work on several important projects in the mining and metal processing industries with projects in graphite, lithium, nickel, and copper. Several projects in the province are expected to secure investments for further development, and we expect significant work to come our way when these projects have secured financing, probably by mid-2025.

We are seeing growth in different commodities, but the energy transition is pushing the trend towards critical minerals. The Québec government is significantly supporting the development of the battery industry, which is a huge driving force behind many of the province’s projects. Progesys has worked on several critical mineral projects with many industry leaders inside and outside Québec. The world and markets have changed significantly in recent years with shifting geopolitics. Some projects that did not get financing in past years, would’ve been important for the battery industry today, and would’ve been success stories if they had been approved. Geopolitical and economic changes and the trend towards onshoring and nearshoring are driving the development of critical mineral projects in Canada and the USA.

But gold has recently attracted attention again. The construction of Marathon Gold’s Valentine project is quite advanced. Progesys was responsible for the project management and construction management there. In December 2023, the Marathon Gold project achieved one million workhours without a lost time injury (LTI). The owner congratulated Progesys publicly. The site has more than 640 employees, and more than 85% are residents of Newfoundland and Labrador. At Progesys, safety is a priority, and we are proud of our impeccable safety track record. What are the challenges and opportunities ahead in the industry push for nearshoring?

It is all about balancing risks. In most cases, risks are monetized, and today, the risk not to nearshore or onshore can be extremely costly. I believe we will continue to see the development of local or regional supply chains in the coming years, so that countries have more control and are less dependent on other regions where there might be risks of geopolitical instability. Are clients interested in incorporating electrification into their projects as early as possible?

We are seeing clients already exploring available technologies for electrifying their equipment from the design phase, and they are also looking at sustainable energy sources, which can reduce their carbon footprint from an early stage. Sustainable solutions do put more weight on the capex but looking at the full life cycle of the project, many of the technological options make sense from an ROI, efficiency, and ESG perspective. What are Progesys’ key priorities to continue growing in Québec and globally?

In Québec, Progesys’ focus is on PMC, not only for the mining industry but also for energy and infrastructure projects. Because of our unique expertise as a project management consultant, our experience in delivering PMC contracts, and our focus on capital projects, we understand the importance of the impact we can have on the success of battery industry-related projects.

We will also continue to focus on the delivery of projects we have in other provinces in Canada, Ontario, and Newfoundland and Labrador, and aim to continue to grow our business in regions like LATAM, Asia, and the Middle East and Africa.