What are some recent highlights from Ausenco?

2023 was a year of exceptional growth for our Chile operation, driven by various studies and projects for major mining companies like Codelco, Teck, BHP, Glencore, Collahuasi, and Anglo American, as well as other firms. As we move into 2024, our focus has been on project execution, with the Mantoverde project being one of the biggest highlights. As we near completion, this will mark a significant milestone for our Chile operation, as our first major project in the country.

At Mantoverde, we are executing the full spectrum of engineering, procurement, and construction (EPC) for the project, including everything from initial design and procurement to managing construction, commissioning, and project wrap-up. Across other projects, our involvement varies from conceptual design to feasibility stages, including pre-feasibility studies. We have also been providing operational support, including commissioning and ongoing operational assistance.

What is currently driving demand from mining clients?

We are seeing increasing demand from clients for assistance with decarbonization, tailings management, and resource efficiency. They are looking to work with companies that embrace a forward-thinking, innovative approach.

How does Ausenco help address the challenge of declining ore grades?

We focus on finding alternatives and leveraging technology to optimize efficiency and defer investments. Instead of immediately expanding with new infrastructure, we explore ways to process existing resources more effectively. This involves using available technologies such as coarse particle flotation, ore sorting, and dry stack tailings to minimize water consumption. By implementing these strategies, we aim to reduce the need for large capital investments while still delivering results. For new projects or expansions, we prioritize cost-efficiencies to minimize financial risk in uncertain markets. Our approach is centered on understanding our clients' business needs and conserving capital resources whenever possible.

Could you discuss Ausenco's commitment to sustainability?

We are doing several things to help our clients meet their sustainability goals, like reducing energy and water usage. We design mines that require less material, such as concrete and steel. We look at electrification and the use of hydrogen in trucks and measure the impact on emissions using our proprietary tools. Internally, we are also focusing on improving our own environmental impact as a company. It is not just about helping others but also taking leadership in reducing our environmental footprint.

What is the potential of renewable energy use for Chilean mines?

Most mines now source their energy requirements from renewable sources because it makes sense from both a sustainability and business point of view. The first step is to optimize energy use in operations, then source the remaining energy from renewable sources.

How are Chilean mines adjusting to the challenges posed by climate change?

We have been helping our clients understand the potential long-term impacts of climate change and how they might affect the design and operation of mines, including changes in water availability, temperature changes or others. Chilean clients have been very proactive in addressing these issues, and we see many operations already taking steps to mitigate those risks. Our teams work to adapt designs to consider future climate conditions and ensure that operations can continue to function effectively under changing conditions. This involves looking at infrastructure, water management systems and operational strategies to ensure resilience against climate change impacts.

How has the investment climate in Argentina evolved under the new government?

We are optimistic about Argentina's political progress. There is significant interest, especially in lithium and other minerals. Most of our studies for Argentina are currently conducted from Chile, but we also see growth potential in Argentina. It is a key region for us, with a focus on lithium and copper studies.

Can you talk about Ausenco’s goals in Chile and the broader South American region?

In Chile, our focus is on sustaining growth and leveraging the achievements of projects like Mantoverde. Internationally, our presence is robust in Peru, where we are engaged in various projects at different execution stages, and in Colombia, where ongoing projects are underway. Brazil has witnessed rapid expansion, particularly in the studies sector.

Despite favorable market conditions presenting ample opportunities for new ventures, we face challenges with permitting processes that need streamlining. South America is abundant with mineral resources essential to meet global demand, but governments must ensure mining processes are facilitated efficiently while upholding regulatory standards.