SOUTHERN REDUCED ITS COSTS DURING THE PANDEMIC IN 17%
The impact of the Covid-19 pandemic has also brought positive situations for mining companies like Southern Peru. From a 17% reduction in operative costs, to US$0.67/
lb, to numerous opportunities for improvement, mainly in technology, such as the incorporation of Artificial Intelligence in all processes. So said Engr. Oscar Gonzales Rocha, President of the company, which main owner is Grupo Mexico, during the online conference organized by the Canada Peru Chamber of Commerce.
“Either we lock ourselves in and avoid the virus, or we go out and face it? We cannot remain passive. We had to encourage others to stand up and say yes, we can”, he said as he remembered initial moments.
The most significative challenges were of maintaining the health of the workers and production. Thus, the measures taken were of not suspending the operations or relationship with the authorities or the people, understanding that, if there is no production, there is no income for the company’s employees or for the State, and that would aggravate the economic and health crisis.
One of the advantages of the company’s mining units, is that they maintain the old scheme for mining camps, where employees live with their families, which was already a situation of isolation. With all the care, the camps were Covid-19 free. A reduction in personnel to approximately 55% was arranged, with a large number of employees working from home.
However, there were workers who tested positive in Ilo, where the smelter is, when they were taken back to their homes, including some deaths.
At the same time, support was provided to the population, authorities, FFAA and the police, hospitals and health centers, in the areas of influence, distributing over 9,000 food and personal hygiene packages, oxygen balloons, and an oxygen plant, among others.
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Tia Maria
According to Gonzalez Rocha, they expect to go into construction before the change of government. According to the surveys Southern are conducting, over 60% of the people support the project. “We believe that the conditions caused by the virus to the economy will be favorable for Tia Maria, because of people’s desire to work”, said the high executive.
Los Chancas
In around 2 to 3 months, the company should complete the EIA to get the construction license. It is a copper project with molybdenum and gold content, metal which price is high.
The concentrates would be processed in a new smelter in Ilo, which would also receive the concentrates of the new expansions of mining units and from the Michiquillay project.
Michiquillay
Southern estimates that it will take between 1.5 to 2 years of conversations with local population, and for the equipment orders.
Fuente: MinerAndina