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How Chilean firm Edyce has become a leading supplier to the mining industry
Chile’s Edyce manufactures metallic structures using a modularization model, provides engineering services for mining operations, handles logistics and offers other construction solutions.
At its plant in Talcahuano, Biobío region, it has manufactured structures for Los Pelambres, worked on Los Pelambres’ incremental expansion (Inco), the Collahuasi desalination plant, Teck's Quebrada Blanca II, Spence, CMP, SQM and Albemarle's lithium plants, among many others.
BNamericas talks to CEO Tomás Fisher to learn more about how the company serves the needs of the mining industry.
BNamericas: How did you enter the mining sector?
Fisher: Since the company’s early days, but particularly in the 1990s and 2000s, there has been a boom in copper projects and we were able to consolidate as the largest company for manufacturing metal structures and assemblies for the industry, both in Chile and in South America.
Our Talcahuano plant has capacity to produce up to 3,000t of metal structures per month.
BNamericas: How does the plant operate?
Fisher: The 150,000m2 plant includes over 20 industrial sheds with CNC [computerized numerical control] machinery, all automatic. From there, we sell to the Chilean market and export to other Latin American countries.
BNamericas: What is the average production?
Fisher: Between 1,500t and 2,000t per month. But, years ago we saw a mining boom and produced around 3,000t per month for a long time.
BNamericas: Considering that volume and the transport needs, how do you address environmental sustainability?
Fisher: We have always been in the same location and established close ties with communities, generating employment and getting involved in various initiatives with local authorities and associations.
We are also in an industrial sector of Talcahuano, where [CAP's] Huachipato plant, the Enap plant, Ultramar group, Inchalam and several others are operating, so we address environmental or community issues together.
Modularization has made a great contribution. Other assembly and construction companies buy supplies separately and build structures on site. We, on the other hand, manufacture at our facilities and transport by land or sea. We are the only company with direct access to the port.
Factory performance allows us to operate in a controlled context, better managing environmental terms. In other words, by not building structures on site, we cause less pollution, use fewer resources, there are fewer trucks, and there is less noise and wet work.
BNamericas: Where does the steel you use come from?
Fisher: We have stock of almost 10,000t of very thick steel plates that are not produced in Chile. We have to import them because Huachipato or Gerdau, running the only metallurgical plants here, manufacture thinner plates that are used for metal carpentry.
The mining industry requires powerful infrastructure to support processes, like mills, heat exchange equipment, etc. We buy mainly in China, but we also have agreements with suppliers such as Hyundai, Samsung or Cumic that are leaders in terms of quality.
BNamericas: Which important structures has the company built for Chile’s mining industry?
Fisher: In 2013, we manufactured a stockpile to collect ore from Codelco's Gabriela Mistral unit, and at Ministro Hales we built a 5,000t grinding structure. We have also worked for Codelco’s Andina mine and at Radomiro Tomic, where we are installing a crusher.
At Inco's desalination plant, we handled 100% of the requirements, installing structures close to 6,000t, similar to building an entire mining process, with the parts having been brought by ship.
For CMP, we rebuilt dust particulate treatment systems and are redoing the stockpile to fit current environmental standards.
BNamericas: What’s the trend in the sector in Chile?
Fisher: Brownfield projects and extensions. In the copper and iron segments, a lot is invested in improvements or operational continuity. These are very high investments because an extension involves practically installing an entire plant that is attached to an existing one.
The most complex are projects that differ completely from the previous structure and when facilities have to be added that meet current environmental and community parameters.
BNamericas: What are the differences between sea and land structures?
Fisher: The main difference is in the coating of structures due to the highly saline and corrosive environment. Structurally, they are not very different, since steel resists everything. We are now building the pier for the Collahuasi desalination plant, and the entire structure and coating have been reviewed with paint suppliers, such as Sherwin Williams, to find options that can survive in the maritime environment.
BNamericas: And what’s the difference between structures used for copper and lithium production?
Fisher: From 2010 to 2015, copper mining accounted for 80% of our portfolio and the rest was iron. The past years were slower, but when talking with market players and engineering companies, we see a good perspective regarding the projects to come. On the other hand, the demand for copper led to the activation of expansion, improvement or continuity projects.
With lithium, demand has been increasing to such an extent that while we are building, other projects are emerging. We are currently manufacturing for SQM's carbonate nitrate and hydroxide plants and for the expansion of Albemarle’s La Negra plant. The level of investment is tremendous.
With SQM, for example, we have to sign framework contracts because investment has been so changing that a structure was built and suddenly they decided to modify it to double capacity. This is because, while progress was made, demand projections continued to increase hugely.
BNamericas: How does the market look in Latin America?
Fisher: We have an important network of international clients. The largest export volume in the last 10 years has been to Panama. Specifically, for Cobre Panamá we exported more than 7,000t of structures and smaller pieces in two years.
This year, our management will be exclusively addressing internationalization to consolidate the company as an exporter of structures for mining and industrial projects in Peru, Argentina, Bolivia, Colombia and Panama. The challenge is to achieve a permanent line from 2023.
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