"Our goal is to achieve double-digit growth in Peru and Chile, two markets full of potential and experiencing significant mining development. We are actively expanding into these areas, using our valuable experience and expertise."

Wilson Miranda

GENERAL MANAGER, CONFIPETROL ANDINA

November 15, 2024

How is Confipetrol leveraging its experience in Peru to develop the Chilean market?

Our international expansion has successfully leveraged our local experience in the Peruvian mining sector to penetrate the Chilean market. We have already established offices in Argentina, Ecuador, Venezuela, Colombia, and Bolivia. Development in Ecuador and Venezuela is being driven by our Colombian offices, which boast a strong background in the petroleum sector.

How does competition differ between greenfield and brownfield projects?

When it comes to new greenfield projects that are starting, there is an OpEx component where everyone has opportunities to compete and win bidding processes. Despite intense competition, there are ample opportunities for all. At Confipetrol, we possess significant expertise in services, operations, and maintenance for surface and underground mining equipment. Being present in major mining operations allows us to showcase this expertise, enhancing our chances of winning new bids. Additionally, we offer a crucial differentiator: robust engineering support for maintenance reliability. Our strong safety indicators, combined with alignment with asset management and international standards, give us a better offering.

On the other hand, brownfield projects present a different scenario. Bidding processes commence every three to five years, requiring us to compete with a value-differentiated product. Unlike greenfield projects, where competition is varied but without any contractors involved, brownfield projects involve contractors, leading to increased competition, which results in product differentiation.

What percentage of Confipetrol's workforce comes from nearby communities?

Nearly 65% of our workforce comes from nearby cities or communities, reflecting our commitment to hiring locally. We actively seek individuals from communities within the operational area of influence. Furthermore, 55% of our suppliers are sourced locally, demonstrating our dedication to supporting local communities. We invest significantly in training individuals and communities in the vicinity, enabling us to employ them later. Similarly, we provide our suppliers with administrative, safety, and financial training, aligning ourselves with our clients' social responsibility initiatives.

What type of training does Confipetrol provide using virtual reality?

In 2023, through RIMAC, we were honored with an award for Best Integrated Occupational Risk Management for our innovative use of virtual reality training in high-risk activities such as electrical work, working at heights, and confined space operations. This training, conducted with special goggles, provides individuals with online, three-dimensional instruction, enhancing their preparedness for various risks that may arise during their tasks and enabling them to apply their knowledge effectively in real-world scenarios.

Furthermore, we heavily emphasize the use of software. When new employees join us, we ensure they receive all necessary training and information online, allowing us to track the support provided to prevent accidents effectively. Additionally, new team members are paired with a mentor for their first six months, who offers guidance and support throughout their work. At Confipetrol, we aim to ensure that employees return home in the same condition as when they arrived at work.

What technologies does Confipetrol use for predictive maintenance?

Through software, we can monitor various equipment within a mine online to ensure proper functioning and prevent failures. Additionally, some vehicles are equipped with devices to measure our employees' somnolence levels, enhancing accident prevention measures.

In maintenance engineering and reliability, we employ state-of-the-art equipment for predictive maintenance across mechanical, electrical, and control systems. Recently, we have utilized digital twins to plan critical tasks such as plant shutdowns and simulate the execution of various activities during these shutdowns. We also employ drones for tomography measurements on medium and high-voltage power lines.

What is the focus of most mining companies regarding outsourcing?

Almost all mining companies are focused on outsourcing their services. Some opt for comprehensive outsourcing, while others choose segmented outsourcing. However, most companies are strongly inclined towards comprehensive management and maintenance because having a single contractor responsible for all maintenance streamlines operations. While many companies outsource, only a few do so comprehensively, but the trend is moving in that direction.

What are Confipetrol's goals for 2024?

For 2024, our goal is to achieve double-digit growth in Peru and Chile, two markets full of potential and experiencing significant mining development. We are actively expanding into these areas, using our valuable experience and expertise.

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