Imaege courtesy of Quellaveco

The Peruvian mining industry boasts a diverse range of local and international OEMs in the equipment segment. These OEMs, from smaller firms with regional footprints to multinational corporations, have been actively developing new technologies that align with global trends such as automation and electrification. 

2023 proved to be transformative for the leading OEMs in Peru. With Alfredo Bertrand appointed the new general manager of the Andean region, Epiroc entered a period of reassessment: “Upon returning to Peru, I encountered a mining sector amid modernization, with a growing demand for cutting-edge equipment. Several mines are contemplating the automation of their hauling fleets. If this transition is successful, the potential for suppliers like us will double overnight,” he said. 

Automation not only enhances safety but also has the potential to broaden access to the female talent pool. In Peru, females currently represent only 7.1% of the mining workforce. “Geotec and Las Bambas announced the creation of the first all-female drilling team, made possible by Epiroc’s equipment. Several exploration companies want to introduce new automated equipment to form female work teams,” commented Bertrand. 

On the other hand, battery-powered equipment is a hot topic, primarily due to its notable benefits in energy efficiency and improving workers’ health conditions, particularly in underground operations. McKinsey & Company suggests that mining companies could reduce their energy costs by at least 40% by adopting electric vehicles and equipment.

However, Sandvik’s general manager, Armando Sugobono, noted that no Peruvian clients have adopted Sandvik’s battery-powered equipment. The smaller size of underground mines in Peru, around is cited as a critical factor: “There are only two mines in Peru — Cerro Lindo and El Brocal– that can fit this size of equipment. Sandvik is working to complement its technology and battery-powered equipment portfolio across the entire size range and market, but it is a gradual process,” he explained. 

Like Epiroc, in 2023, Komatsu-Mitsui Maquinarias del Perú (KMMP) underwent a leadership change, with Julio Molina appointed the new CEO. The company achieved notable sales of US$650 million, attributing a portion to a substantial contract with Antamina. Under this multi-million-dollar, year-long agreement, KMMP will supply 20 Komatsu 980E-5SE trucks with Cummins QSK95 engines. The initial order of 10 trucks will be delivered in Q1 2024, with the remaining eight scheduled for delivery in the second half of 2024. 

Molina noted that brownfield projects drive demand, focusing on the energy transition, fleet automation, and digitalization: “The energy transition and mineral demand drive brownfield expansions. Key clients such as Cerro Verde, Southern Peru, and Las Bambas focus on increasing production and exploring new technologies. The current mining landscape is defining its future, addressing decarbonization goals, and meeting the global aim of carbon neutrality by 2050,” concluded Molina. 

When GBR met with Erick Ruiz, Cummins Peru’s general manager, he commented that while the new QSK95 engines (like the ones used by KMPP in Antamina’s order) count now with the Modular Common Rail System (MCRS), Cummins is focusing on progressively upgrading the HPI technology from the QSK60 and QSK78 engines with the MCRS: “The HPI technology operates via mechanical fuel injection, while the MCRS offers distinct advantages, including an extended engine lifespan of nearly 10% and reduced fuel consumption” he explained.

Specializing in hydraulics, Bosch Rexroth recognized a niche in electromobility with its eLION portfolio. General manager Kai Rothgiesser noted that Bosch Rexroth is collaborating with two Peruvian manufacturers on building two prototypes: “We remain hopeful of announcing the system’s operation during Expomina if all plans proceed as expected,” he commented. 

In 2023, Bosch Rexroth acquired HydraForce, a global manufacturer of insertable cartridge valves. This acquisition enabled Bosch Rexroth to expand into a niche market where HydraForce previously lacked a national presence, a move that, according to Rothgiesser, is gaining momentum: “While mounted valves are standard, the compact and insertable versions have generated significant interest across a broad market,” he concluded. 

Narrow veins, narrow market 

Resemin, a local OEM, exemplifies the maturity and innovation of the Peruvian mining industry, showcasing the country’s capacity to export talent and technology. In 2023, Resemin expanded its horizons by exploring potential opportunities in Ankara, Turkey, to establish a manufacturing facility to produce equipment tailored for the African and Asian markets while maintaining Peru as a hub for the Americas: “A decision is anticipated in 2024, and if affirmative—given the required investment—we plan to execute the project in 2025,” said James Valenzuela, Resemin’s CEO. “The challenge stems from being the “new kid on the block” in a well-established and conservative segment. Although we measure up, convincing customers about this particular product proves to be an uphill task,” he concluded. 

Luis del Solar, the general manager of Overprime Manufacturing, another local manufacturer of narrow vein equipment, highlighted that major brands such as Epiroc or Sandvik often overlook this niche market because the demand for narrow vein equipment primarily concentrates in specific regions like Peru, Bolivia, and certain mines in Mexico and Chile, resulting in lower overall demand than larger-scale mining equipment. However, Overprime faces tough competition in Peru, particularly from Chinese equipment manufacturers. “The Chinese often enter the market at considerably lower prices, possibly through dumping practices… Competing with them is challenging as their prices are typically one-third of ours, undermining fair competition.” 

Construction and Auxiliary Equipment 

During separate interviews, both Scania’s managing director, Eronildo Barros, and Volvo Peru’s general manager, Jorge Masías, agreed that despite having electric alternative trucks in other Latin American countries, they could not introduce them in Peru due to operational parameters that do not align well with the conditions of Peruvian mining. In the meantime, both companies have been developing different configurations, demonstrating their commitment to supporting the mining industry in Peru despite the limitations posed by current technology constraints. 

For instance, Scania’s flagship truck is the Heavy Tipper, with 6X4, 8X4, and 10X4 configurations: “This model stands out for its 20% higher payload capacity than conventional ones. Among the options, the Heavy Tipper G540 8X4 leads to preferences due to its versatility, efficiency, and lower fuel consumption, making it the most sought-after choice. 59% of our sales of this model are destined for mining,” commented Barros. 

For its part, Volvo’s growth in the mining sector was driven by the FMX Max: “Our FMX Max stands out as the heaviest mining dumper in our lineup, demonstrating exceptional performance and earning strong market recognition. The FMX Max, compared to the traditionally sold FMX, boasts an additional 6-ton load capacity and is utilized by clients with a 24m3 hopper instead of the standard 20m3,” added Masías. 

Lubricants for energy optimization 

While the transition toward BEVs in large-mining Peruvian operations is still not feasible due to the operations’ geographical and altitudinal nature, many solutions fall between BEVs and traditional diesel engines to reduce GHG emissions. “Well-lubricated equipment can profoundly impact energy efficiency, whether in terms of electricity or fuel. An adequately lubricated component consumes less energy, showcasing lubrication’s pivotal role in energy optimization,” commented Daniel Rochon, deputy general manager at TotalEnergies Peru. 

Terpel, with ExxonMobil, developed the Mobil Delvac Modern line of lubricants, which is tailor-made for the Chilean and Peruvian mining industry. According to Luciano Macías, general manager at Terpel Peru, with this line, there is no need for equipment downtime for oil changes, extending working periods up to 1,000 hours: “The significant impact will manifest in three to four years as equipment engines, typically maxing out at 20,000 hours, will exceed 25,000 hours,” he claimed. 

Material handling and flotation 

Conveyors are crucial in carrying materials from the mine to the processing plant, and downtime can result in significant financial losses. In this context, conveyor belt providers are focusing on preventive and predictive maintenance. Fernando Barrio, general manager of Tecnomina, commented: “Clients recognize investment in predictive solutions as an effective means to avoid unplanned shutdowns, shifting the focus from corrective to predictive and preventive measures and anticipating potential issues in the medium and long term.”

Tecnomina offers dynamic radiography for steel cable conveyor belts and electromagnetic scanning. Both methods eliminate the need for traditional inspections with operators near the belt. While the second option is more economical, it provides slightly less detail. “Clients can choose the machine based on their budget and schedule the scanning frequency, whether periodically or twice a week,” explained Barrio. 

Roxana Burgos, the general manager at Movitecnica, sees opportunity in the industry’s growing receptiveness to such technologies. Although Movitecnica was initially renowned for its crane services, it has significantly expanded its presence in the conveyor belt segment over the past few years: “We have a presence in most mining units, including large-scale and medium-scale mining operations. The conveyor belt business units represent 35% of our business, and we represent top-tier brands such as Fenner-Dunlop and, more recently, Yokohama,” said Burgos. 

Unpredicted shutdowns are a mining company’s worst nightmare, while energy consumption poses another concern. Javier Schmal, Latin America vice president for Martin Engineering, explained: “Material that escapes or adheres to the belt and begins to spill and stick to the idlers and pulleys results in increased energy consumption. Similarly, when chutes become filled with material due to moisture or special characteristics, failure to prevent material buildup at the transfer point can also result in excessive consumption, damage, or a plant shutdown.”

After being transported via conveyor belts, the ore undergoes a milling process before the mineral is extracted using various recovery methods to get the mineral. Companies want to optimize mineral recovery to extract every last milligram of minerals and reduce tailings as much as possible.

For instance, Anglo American is constructing a Coarse Particle Recovery (CPR) plant at Quellaveco. This will allow the company to recover more copper without additional water since it would be recycled from the same tailings. 

While CPR has garnered recognition for its efficacy, the flip side of this involves the intricate challenge posed by ultra-fine particles. Metso has been leading the way in this regard. One of the company’s recent innovations is the Concorde Cell Technology, specifically designed for the flotation of fine particles: “Challenges arise with tiny clay minerals, such as those measuring 5 microns, which are difficult to float without applying fine and ultra-fine flotation. This becomes particularly valuable in recovering minerals previously lost in tailings, potentially resulting in a 3-4% increase in production with significant economic value,” explained Fernando Samanez, VP and head of minerals sales in South America at Metso. 

Another strategy to enhance flotation efficiency involves implementing multiple flotation cells. This approach ensures efficiency and speed in the recovery process, facilitating almost instantaneous results. Jordan Barja, the general manager at ByV IESEMIN, noted that along with Minsur’s San Rafael operation, they are currently conducting a feasibility study to install an SK-80 flotation cell: “This cell will allow for quick mineral recovery, eliminating the need to pass through multiple circuits and directing it straight to concentration,” he concluded. 

Digital tools for wear parts and customized service plans 

Whether it is the shovels at the beginning of the process or the milling equipment at the end, all equipment requires durable wear parts to ensure an extended lifespan. In this segment, we find Weir ESCO, which is part of the global Weir Group. Daniel Bacigalupo, managing director – Spanish speaking Latin America at Weir ESCO, explained Motion Metrics, an AI system applied to machines for detecting operational issues: “The system provides granulometric metric profiles, boulder detections, volumes efficiencies and other applications in various areas like loader, trucks, conveyor belts, and blasting. This AI technology captures images, processes them through the CPU, and transmits alerts and information to the cloud, delivering essential real-time data on wear parts within other KPIs.” 

On the compressor technology side, Atlas Copco has experienced increased demand for connectivity solutions in Peru, primarily influenced by the interest in remote operations. Julio Hernández, general manager of Compressor Technique - Atlas Copco Andean Region, highlighted a noticeable shift among clients. They are moving away from generic-market solutions and instead opting for a model that emphasizes customized service plans. This approach allows clients to concentrate on their core activities while benefitting from tailored and efficient service offerings: “Customized service plans are also highly sought after. We offer a variety of plans ranging from spare parts sales to comprehensive solutions, assuming full responsibility and risk for the machine,” commented Hernández. 

MS4M, a Peruvian company, debuted its C4M Underground system in 2022, marking its entry into the underground mining market with a fleet management solution. Richard Balboa, MS4M’s general manager, emphasized that the company had to transition from a typical technology provider model to one where they could adjust to the fluctuations in their clients’ cashflow situation: “Clients have two options: the traditional CapEx model of purchasing licenses and hardware to install on their equipment, or a more OpEx centric model of obtaining the system with minimal upfront cost followed by a fixed monthly fee on fleet size. Providing this sort of optionality enables smaller CapEx-sensitive operations to have a better ability to obtain the system and thus unlock the value of our mature and evolving technologies.”