How is STRACON continuing to diversify and grow its business?

STRACON now has four distinct business lines: open pit services, which equate to around half of our services; underground services, at around 14%; equipment rental, asset management and maintenance around 18%; and engineering and technology approximately 15%. This represents a significantly more diversified portfolio than we have had in the past. Our recent focus has been bringing these business lines together, ensuring they are working closely to provide integrated solutions across the mining value chain.

Our engineering, technology and infrastructure services are key growth avenues across projects requiring water and tailings management and energy solutions. Digital solutions to support transformation within mining operations, at both expanding brownfield and greenfield projects, is a big focus too.

Where are STRACON’s main markets, geographically speaking?

Around 40% of our activity is in Peru, with the rest throughout the Americas. We are seeing a growth in Chile especially, and there are new projects on our radar throughout the region, including in Canada, USA and in Argentina. We are keen to follow our clients, whether that be next door in Peru, or elsewhere in the Americas.

In Peru, there remains a lot of room for us to grow. There is a lot to do to support new infrastructure, where we can apply our engineering and technology offerings, as well as traditional construction and contract mining services required to support the increasing demand for critical minerals, namely copper. 

STRACON recently joined the Copper Mark. What does that represent for the company? 

It is recognition of who we are as a Group and how we operate, reflecting our commitment to sustainability, our attention to aspects such as water management and renewable energy, our positive community relationships, and our laser focus on safety performance. In 2024, we had no lost time to accidents in Peru and Colombia across nearly 6,000 people.

For our clients, many of whom have joined the Copper Mark themselves, or want to, it carries weight. 

How is the Fenix gold project progressing in Chile, and what digital solutions is STRACON implementing?

STRACON has just begun construction at Fenix project, where we have a life-of-mine agreement with Rio2’s subsidiary, Fenix Gold. We are replicating the way in which we constructed and operated the La Arena and Shahuindo mines, so following construction we will move into mining operations, working as an integrated team with Fenix Gold.

We will put in place a number of digital solutions at this project, focused on enhancing safety and productivity. As an example, we have developed an award-winning solution to track personnel within high risk zones, such as for blasting operations and maintenance facilities.  A significant component of our business is haulage, so we put effort into reducing fuel consumption, maximizing the efficient use of equipment through utilizing fleet management solutions.

We have an innovation hub within our business, working with all our operating companies to identify improvement opportunities and develop new solutions. We are working to roll out those solutions across all our operations where possible.

How do you see the years ahead for the mining industry?

There has been a quiet period for a few years with respect to new projects in Peru. We have seen cycles over the years of large-scale contracts, then lulls in greenfield project development. Now, though, demand for copper is set to keep growing, and the price is likely to keep rising with it. Looking at USA, Peru, Chile and Argentina, these are countries with significant copper reserves – so we are very positive about the future and what it represents for STRACON Group.

Many of our major clients have significant capital projects ahead at existing operations and to develop new greenfield mines. We are of course eager to continue to support them as they continue to grow. With that in mind, we are keen to consolidate and grow our engineering line and technology offering, and to work with our clients to identify new projects and ways to capture additional value. We are looking into a lot of energy projects and trying to get involved as early as possible. As always, we will continue to adapt, which is something we have done from day one, finding the right answer for each project.