How has Geocontrole evolved in the Brazilian market?

We entered the Brazilian market in 2013, and established an office in Belo Horizonte, Minas Gerais, as our only focus in the country was and remains the mining industry. Today, Geocontrole is structured with expert human resources who act in various fields of consultancy and geotechnical investigation, namely special foundations, observation and geotechnical instrumentation, quality control of materials, as well as soil, rock, and concrete mechanics laboratory testing, and we also provide drilling services to the main players in the mining industry.

Geocontrole’s two main services today are geotechnical investigations and drilling, which each represent approximately 45% of the company’s overall activity. The other 10% is represented by our laboratory services. We saw an exceptional 25% growth in revenue in 2022 compared to 2021, and we expect to continue on this path with a 15% growth in revenue in 2023.

Can you elaborate on the main objectives of Geocontrole's partnership with INNRA?

INNRA offers solutions related to innovation, safety, and digitalization. Geocontrole saw it as a good opportunity to partner with them and bring them to Brazil. We are proud to be the first company in the market to offer these kinds of solutions to clients and are already installing digitalized and automated equipment for some of our clients, which will improve the safety and efficiency of operations.

The safety of our workers is a key focus area for Geocontrole, and with the implementation of automated equipment we can take operators out of dangerous environments, making their work much safer and more comfortable than before. Increasing the safety and comfort of the work environment can also attract more people, such as the younger generation, women, or people with disabilities, to the field, which is extremely important at a time when there is a labor shortage in the market.

What trends are you observing in drilling techniques?

With a focus on safety, Geocontrole is bringing an automated drill rig to our operations that can eliminate practically 99% man-to-machine machine ratio. It allows for operational safety as in just one maneuver, the employee-operator can perform his work, and it also provides the opportunity to create inclusive work environments in the drilling space since the physical demands of the drilling operation become practically non-existent. The automated drill rig allows the highest levels of operational safety and quality of production as there is continuous evaluation of activities and metrics from telemetry systems.

We have showcased this automated drill rig to the market and are currently finishing the preparations to implement the rig in the field. This is the first geotechnical drill rig in the world that is equipped with automated systems that allows for easier and safer operations. Our rig will be deployed at one of Vale’s operations soon, and we expect that this will be the first such rigs to be deployed.

How is Geocontrole involved in the tailings space?

Geocontrole is involved in several projects related to tailings dams, especially with the mining industry having an increased focus on tailings after the Samarco dam disaster. We are receiving significant demand for geotechnical investigations to improve the stability of tailings dams structures.

What is your perspective on the current mineral exploration environment in Brazil?

Brazil is geologically well endowed and there are great opportunities related to the exploration and mining of critical resources that will be needed for the energy transition. Brazil has all the ingredients to be a leading player in the transition.

There has been more activity in the mineral exploration space over the past few years, especially considering the energy transition. The main players in the market are either looking to increase capacity or expanding their asset portfolio with critical mineral resources. High interest in critical mineral mining has had a positive impact on Geocontrole’s business and we are seeing increased demand for our services.

What are Geocontrole’s strategic objectives for the next two years?

Geocontrole intends to continue its growth trajectory and be recognized as a major player in the geotechnical and drilling services market. We are currently building a new laboratory and offices in northern Brazil to be closer to the mining industry that is developing in that region. We will continue to offer new solutions, innovations, and technologies to the market to better serve our customers.