"We leverage our experience in Chile, where we work on the ongoing construction of desalination plants and water pumping systems."

Óscar Navas

BUSINESS DEVELOPMENT DIRECTOR – ANDEAN REGION, TECHINT ENGINEERING & CONSTRUCTION

September 11, 2024

What significant projects has Techint undertaken in Peru?

Techint entered Peru in 1976 to construct the north Peruvian pipeline, one of Peru’s main engineering projects, spanning over 1100 km. Since the beginning, we have been an EPC company, covering the full value chain of a project, from concept to feasibility, engineering, procurement, construction, commissioning, and startup. We also have a division dedicated to operation and maintenance. 

In the mining sector, we have contributed to significant projects such as Chinalco’s Toromocho mine, where we held essential responsibilities in various systems and the concentrator plant. We also worked on Marcobre’s Mina Justa, which involved building water transportation and electrical transmission systems. More recently, at Quellaveco we constructed a freshwater pumping system for mining operations, comprising an approximately 80-km pipeline. At the same time, at a large mining Peruvian company, we engineered a project for tailings and ore transportation from the mine. We leverage our experience in Chile, where we work on the ongoing construction of desalination plants and water pumping systems for Codelco’s Radomiro Tomic district and the water pumping and transportation system for Collahuasi’s desalination solution.

What emerging trends will shape Peru’s mining industry in the following years?

Sustainability, which involves meeting current needs without compromising the ability of future generations to meet theirs, is fundamental in all our projects. This is especially true for our mining sector clients. We have implemented sustainable solutions for industrial processes that protect the environment by preserving scarce freshwater resources and safeguarding ecosystems.

In this context, one of the trends concerns using desalinated water, a practice already embraced in Chile. It is plausible that Peru will follow suit, using desalinated seawater to find viability in mining operations in mountainous regions.

The second consideration pertains to the Early Contractor Involvement (ECI) concept, wherein some mines engage potential contractors in early-stage pre-engineering or even earlier phases to integrate crucial insights into maintainability, reliability, and constructability, which is vital for project success. We partnered with a major Peruvian mining company during a critical material handling project development, contributing our expertise as engineering developers and constructors. This encapsulates the essence of being an EPC specialist—contributing not only from an engineering and procurement perspective but also from construction, thereby maximizing value throughout the project lifecycle.

Desalination plants add an extra cost: does it prime CapEx or social license to move the project forward?

Indeed, it is an additional structure compared to what existed previously. Now, considering the social license sought by mining companies and the costs associated with shutdowns, controversies, permit delays, lack of acceptance, and more, it is worth calculating those amounts. In that context, while the CapEx increases, the value lies in social and community engagement, enabling projects to progress. 

What distinguishes a company suitable for an EPC model from one suited for EPCM?

Choosing between an EPC model and an EPCM approach depends on an organization’s ability to manage and oversee project outcomes effectively. Many of our clients are established mining companies with the expertise and resources to handle EPC projects, as they ultimately become owners of the asset and desire complete control over outcomes. An EPC model suits mining companies that can comprehend the product they receive and establish priorities for its delivery.

Conversely, an EPCM approach may be more suitable for newer, smaller companies seeking expert guidance on project solutions. While our specialization lies in EPC, we recognize the value of the EPCM model for specific clients. In such cases, we work closely with EPCM specialists, serving as strategic allies to ensure successful project execution.

What factors does Techint believe are essential for Peru’s growth in the next five years?

Peru holds immense potential, and we believe that unlocking this potential lies within the supplier ecosystem. If investors perceive a conducive environment for translating investments into reality, Peru should experience significant growth in the coming years.

We closely monitor developments concerning Antamina’s life extension and are eager to contribute value. Additionally, our attention is on Antapaccay’s expansion with the Coroccohuayco project. We are also exploring opportunities arising from projects like Chalcobamba in Las Bambas. Furthermore, we see new mining projects such as Zafranal and Tia Maria positively, leveraging our expertise in pipeline and material handling and our ability to construct complete mining plants. 

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