Afry upbeat about Brazil's mining, infra sectors

European engineering, design and advisory services firm Afry sees room to expand in Brazil’s mining and infrastructure sectors.

"Afry is here in Brazil, present in the paper and pulp, mining, chemical sectors and in infrastructure projects a little. In the paper and pulp sector, we're seeing plans for new projects, not final decisions. In the mining area, we see its big business potential, even greater than investments in the paper and pulp area," Latin America head Marcia Mastrocola told BNamericas.

Recently, Afry won the engineering, procurement and construction management contract for Aura Minerals' Borborema gold processing plant in Rio Grande do Norte state.

The strong appeal for ESG practices is seen as a business driver in the mining sector. 

"The mining sector is currently very focused on issues related to ESG, with a series of initiatives aimed at achieving the goals that companies have set themselves in the socio-environmental area. This is reflected in greater demand for engineering projects for us, both greenfield and brownfield," Afry Brazil’s head of the mining and metals division, Henrique Oliveira Santos, told BNamericas.

"From a sectoral point of view, we see large demand for segments in the mining area linked to the energy transition, such as lithium, nickel, titanium, copper, which has even overlapped the iron ore segment," said Santos.

Most demand is related to decarbonization, the circular economy and the incorporation of new technologies, according to Santos.

Port terminals are another sector that is becoming increasingly important for the firm.

Mastrocola said 90% of the company's business in Latin America is done in Brazil and the rest in Chile and Peru.

But Mastrocola also said that "we have seen for some time now that the capex of various segments is under pressure and this pressure persists, mainly in sectors with intensive use of steel and intensive use of labor."

Mining and infrastructure projects will likely see upward reviews in coming months, she added.