What were some milestones achieved by Master Drilling in Peru over 2023?

In Peru, we made two crucial decisions. Firstly, we opted to bring in the country's largest and most powerful machine, the raise borer RD5. Throughout 2023, we successfully solidified the operation of this machine, offering the market a new opportunity for projects of greater diameter and length, allowing us to undertake projects beyond the constraints of local offerings. The RD5's unique features provide better efficiencies and translate into shorter project durations and, consequently, reduced costs for our clients. This achievement is now a well-established reality, with a pipeline of projects spanning at least -2 years. 

The second significant decision in 2023 was introducing a machine employing a novel drilling method for the production or exploitation phase of underground mining— the LP 200, utilizing the blind hole drilling method. This machine, capable of creating vertical ascending holes of 1.5 meters in diameter, aims to replace the traditional drilling and blasting method used in producing slots for long-hole mining operations. We want to consolidate this service, offering our clients a safer operation with higher quality and perfectly defined profiles. Our commitment extends to ensuring the absence of deviations and explosives while significantly enhancing productivity. It is worth noting that this is not a new invention; the machine has been operational in Chile since 2001 with a significant fleet, and we are now introducing this proven technology to the Peruvian market.

How do increased automation and efficiency help absorb the impacts of inflation and material costs?

For the raise boring market in Peru, we have strategic investments planned to enhance the automation level of our machines. The objective is clear – achieving greater reliability and efficiency. This dual focus is pivotal in handling the market's various increments, such as inflation impacting labor costs, raw materials, and equipment expenses. Elevating automation levels is not just about technological advancement; it is a proactive measure to improve reliability and efficiency, providing robust support to cope with market fluctuations. 

The LP 200 stands out as a machine with a significantly higher level of automation than anything previously employed in Peru. With an advanced control system, it maximizes the machine's power, enabling project completion in shorter durations – a direct benefit for our clients. Clients no longer need to dispatch their fleet for routine tasks; the machine operates autonomously, intervening only when necessary. Additionally, the optimized layout of the LP 200 requires less mine infrastructure, resulting in reduced expenses for the mine in terms of the space it allocates. In every aspect, it contributes to minimizing costs for the mine.

What are the four key pillars Master Drilling is focusing on for the future of mining?

Master Drilling, as a group, has set a new purpose to make a difference by envisioning the future of mining. This vision revolves around four pillars: embracing new technologies and disruptive innovation, diversification with sustainable growth, pursuing operational excellence, and seeking sustainable and positive impacts. One ambitious dream of Master Drilling is to develop underground mining without using explosives. The company actively implements various solutions for each process stage, employing mechanized cutting for shafts, ramps, crosscuts, and following veins. 

Locally, adopting these innovations in Peru may take time, given the relatively young depth of Peruvian mines. However, as mining operations deepen, common challenges arise, impacting efficiency and increasing costs. Moreover, the growing complexity of social issues in obtaining licenses necessitates innovative solutions. The ongoing efforts to mechanize and reduce the use of explosives address these challenges and add significant value to the industry.

What is the goal of the Master School project initiated in 2024?

For 2024, we have launched a new project called Master School. This initiative involves bringing fresh talent into the company and recent graduates who have joined Master Drilling embark on a journey to explore and develop their skills in various fields within the company. The goal is to allow them to understand, learn, and assess whether this could be a viable and fulfilling career path for them in just one year.

What was the response of the Peruvian market to AVA and A&R’s solutions?

AVA is a company part of Master Drilling Group, that provides fleet management software for equipment such as trucks and shovels. In 2023, Ava successfully established itself as a contractor-to-contractor solution. In 2024, A&R is preparing for its inaugural field test in Peru, aiming to replicate the success achieved in countries like Mexico.