“Local manufacturers are able to provide 80% of what is needed for a mining project”

This year mining suppliers seek basic and detailed engineering of all projects to be performed by domestic companies.

According to Fabrizio Benedetti, president of Cámara Argentina de Servicios Mineros (Casemi) (Mining Services Chamber), Argentine manufacturers are able to provide up to 80% of the necessary products, supplies and services for mining projects. This is one goal for the Mesa de Homologación Minera (Mining Certification Bureau), created by the Government to boost the replacement of metal producers’ imports by local products.

In that sense, the manager pointed out that it is critical that national engineering companies get involved in mining projects design so as to encourage domestic suppliers participation from the start. “One of 2013 goals is to have all basic and detailed engineering of all mining projects under construction signed by Argentine companies,” the referent of the Mining Certification Bureau explained to El Inversor Energético & Minero. “We hope to achieve this by the end of the year,” he added.

How did the idea of boosting national engineering participation in mining ventures come about?, we asked the manager.

We want local companies to track mining projects. We assume that Argentine engineers are very good. Last year we attended six meetings with engineering companies to know their potential. We believe that when we are able to realize a mining project drawn with Argentine products and engineering, its construction will be easier to achieve. Argentine companies’ knowledge about the range of products, supplies and services that can be found in the country is more detailed. That’s why their participation is critical.

What percentage of mining industry imports can be replaced?

Domestic industry may be able to provide 80% or even 85% of all a mining project requires. There are irreplaceable products, not because of a lack of capability, but because Argentina’s consumption level is not enough to boost local manufacturing.

How would you assess the sector performance during 2012?

Excellent. Many lies were told, like imports replacement would damage the normal functioning of some mining projects, delaying the established progress. However, in December we found out that almost all mining companies reported to the Ministry or the Secretary of Mines that they had met expectations and, in cases like San Juan, they surpassed what they had planned. There are even companies like Pirquitas (Silver Standard), which reported that after imports replacement they managed to save 20% of what they thought they would spend.

All of that makes us believe that the task performed is very good. We have started to produce several products nationally, a process which adds value to the mining industry. There are suppliers who have already begun selling to mining projects in neighboring countries such as Chile.

What are the next steps?

We have a lack of information sometimes, because we act in two ways. One is when the mining company asks us to look for a product they need to import, in order to check if it’s locally produced. The other one is when we get to know that the mining company wants to import a product. In that case, we report to the chamber to check if there’s a supplier able to replace that import.