"We have developed two major services in recent years: shotcrete application, and mineral and waste transportation within the mine."

Guillermo San Miguel

CEO, AESA

May 31, 2024

Can you provide an overview of AESA's activities over the past year?

During the past year we have been rethinking many strategies and priorities, particularly focusing on enhancing the safety and well-being of our workers. Throughout the year, we focused on improving safety, productivity, and the quality of our services. We achieved a record-breaking revenue growth of 15% compared to the previous year, thus closing the best financial year since the onset of the pandemic. This achievement reflects the resilience of our organization and its ability to overcome adversities.

How has the integration with Redpath Mining developed?

The idea of ​​partnering with Redpath emerged around 2018-2019. We were observing a significant trend of migration from open-pit mines to underground mines in Peru. This requires specific expertise and technologies, especially in terms of automation and project development. Redpath had this experience, which led us to form a 50-50 joint venture called ARM.

This company was mainly formed to participate in the bidding process for Newmont's Chaquicocha underground mine. We won the bid in 2021, and began engineering and development work for the new mine in collaboration with Newmont. We had already drilled and developed tunnels on this project, so we were familiar with the local environment. Redpath contributed its expertise in automation and integrated management. Although the Chaquicocha project has been halted, we continue to seek new projects to apply our combined knowledge. 

What were AESA's most demanded services over the past year?

AESA's core services continue to be in high demand. These include the development and preparation of mining infrastructure, such as tunnel construction and support. We have also developed two major services in recent years: shotcrete application, and mineral and waste transportation within the mine. We have a fleet of over 70 dump trucks currently operating in various mines. Our proven track record with our current clients has allowed us to increase this fleet and consolidate our position over the years. 

How are you reinforcing safety at AESA?

Our safety management system is based on several fundamental pillars, one of which is a training and integration process for our personnel, both newcomers and those with more experience. A key phrase in our company is "I take care of you, you take care of me", which reflects the need to create a virtuous circle in safety matters and to reinforce safety among colleagues.

In 2019, we achieved certification for our safety management system under the ISO 45001 standard, and we have committed to renewing it annually to incorporate the best international practices. Recognizing that our needs may differ from those of other companies due to higher levels of staff turnover, we have designed our safety system to adapt to these particularities.

We have implemented innovative technologies, such as virtual reality and simulators, to enhance the training of our operators. Additionally, we launched the “Kuntur” project, focused on improving safety and productivity through specific assessments and training aimed at closing identified gaps in accidents and productivity. Another key factor is visible leadership. It is essential that our leaders exemplify safety behaviors not only at work but also in their daily lives, thus promoting a comprehensive mindset.

What is AESA's strategy regarding automation and remote operations?

We are currently observing trends and exploring opportunities in automation and remote operations. Our goal, in the near future, is to automate data collection to better understand equipment performance and optimize its operation. Once this process is established, we can identify improvement opportunities and develop business cases with our clients. It is essential to consider both the economic feasibility and the benefits in terms of safety and productivity when implementing these solutions.

What are AESA's objectives for 2024?

We seek to add value to the customer by being more productive and efficient and maintaining high standards of quality, especially in the context of tight prices, while ensuring the safety and well-being of our workers.

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