“There will be more activity for Lama-Pascua’s suppliers”

Alejandro Donna, president of Cámara de Servicios Mineros (Casemi), the mining services chamber of San Juan, stated that, though 2012 was a good year as a whole, the level of activity was higher during the first semester and then it slowed down, particularly in the last quarter. “Due to Lama-Pascua inner issues (Barrick handed the project management to a temporary joint venture between Fluor and Techint), hiring delayed during the last two or three months of 2012. The suspension of Vale’s Potasio Río Colorado Project in Mendoza is not a good sign either,” the manager warned.

“However, San Juan’s perspectives for 2013 may be different from those of Argentina’s as a whole. Since the suspension in Lama was due to Barrick’s administrative, inner reasons, we believe that this year the company will come up to catch up with all bids postponed last year,” he added.

How San Juan mining suppliers’ activity will perform in 2013?, we asked the president.

Although the nation’s scenario may be a little more complex, we believe that San Juan will continue to experience good momentum. No doubt, the activity will grow because Lama, the project’s largest engine in the province, will pump a considerable sum of money.

Which branch will experience the largest growth?

We think there can be a greater movement in services related to engineering, metal-mechanical industry, civil construction and soil movement. Basically those are the branches that have the greatest impact when works in a deposit start up. There is also activity in the Human Resources office. And most importantly, other services such as catering, attire and transport begin to create opportunities by decanting. The construction of a project brings a multiplying effect of demand in every branch, which is then significantly reduced when the production stage begins.