A copper trail to the Chilean market

With annual revenues from metals mining at USD 50 billion, Chile is one of the world’s leaders in this industry, which is growing three times faster than the rest of the Chilean economy. Global copper producers understand that trend and are investing in this country. Although resources attract the majority of funds, the Chilean market is also open to other businesses.

“Chile is a reliable and democratic country, which is attracting foreign investments due to a favorable business climate. With constantly growing competition from such countries as the Netherlands and England, the transfer of know-how is becoming the key to success. Innovative companies from Poland have the chance to permanently succeed in the Chilean market. KGHM and its successful investment in the Sierra Gorda mine may serve as a good example as it strengthens the brand of Poland in Chile,” said Aleksandra Piątkowska, Ambassador of Poland to Chile.

Polish companies are becoming increasingly successful in the competition with foreign corporations as far as innovations and quality of products is concerned. An important factor in this foreign expansion is co-operation: by promoting one another and sharing their knowledge, Polish companies are able to develop more effectively.

„KGHM supports Polish companies planning international expansion by sharing contacts and best practices. I am satisfied that the Chilean market is becoming increasingly attractive to them. We wish to continue to share knowledge with Polish businesses and research institutes. The Sierra Gorda mine is a fine example of a strategic foreign expansion. It proves we have layers of possibilities available due to co-operation and courage,” stressed Herbert Wirth, President and CEO of KGHM.

Sierra Gorda is one of the largest mining projects in the Antofagasta region. It makes use of the state-of-the-art technologies that allow for the full efficiency of operations.

“Sierra Gorda is an innovative and pioneering mining project. Its construction demanded the engagement of over 53,000 people, 18.5 million working hours and over 600 contractors. Two of them – TELE-FONIKA Kable and Sempertrans – come from Poland. In mid-2015 the mine’s ramp-up process will be completed and full phase 1 production should be reached. The second phase of development is a great chance for co-operation as far as providing products and services is concerned. This can serve as an opportunity to enter the Chilean market,” declared Maciej Ściążko, General Director of Sierra Gorda SCM.

Chile’s sustainable economic growth, political stability and safe legislation create perfect conditions for investment. Polish companies that took part in the seminar presented offers in the field of engineering, design and construction, as well as supporting, optimizing and managing production processes.

“I was happy to accept the invitation to the Polish-Chilean Mining Investment Seminar. While geographical and cultural distances make it difficult to acquire new contracts, today's event allowed for direct contact with potential customers. Comarch creates innovative software for the management of key business processes. I see great opportunities for co-operation with Sierra Gorda SCM in delivering innovative solutions to manage and expand the mine in the nearest future,” said Jorge Uribe, CEO of Comarch Latam, responsible for expansion in Latin America.

For Robert Kozłowski, Director of Trade at PeBeKa, the Polish-Chilean Mining Investment Seminar served as the beginning of long-term activities, the effects of which should be seen in the future. “Our offer is quite specific. Shaft sinking with rock freezing is customised to meet the needs of individual customers. When the life of open-pit mines in Chile is no longer feasible, underground operations will start. We’re going to offer our services at that time and an in-depth knowledge of the Chilean market will certainly be an asset of ours.

The Seminar was also attended by companies that are already familiar with Polish and Chilean business opportunities.

“I decided to attend the Seminar as we are looking for new players in the Chilean market. Polish companies bring interesting technologies and products at competitive prices. We have a long experience in cooperating with Mine Master, a Polish company. Our relationships with Poland are very good,” declared Fernando Marchant, Corporate Director of Purchases at Codelco.

Manuel Viera Flores, General Director at Metaproject: ”I see a huge potential in Polish companies. We have already visited Poland in search of product and service providers and met more than thirty companies. I looked forward to today’s meeting. We need new product and service providers in the Chilean market. Polish companies offer high potential for growth and innovation. I hope to cooperate with KGHM Cuprum.

Proffessor Witold Pytel, KGHM Cuprum: ”At first, I was sceptical towards today’s Seminar. Yet, I see that this meeting of two different worlds that brings together technology and business in Chile may result in new solutions. The future of further Polish-Chilean cooperation is highly interesting to me. I am sure the expansion of Polish companies to Chile is worth being continued.

The Polish-Chilean Mining Investment Seminar was attended by representatives of over thirty companies from Chile, such as Afaccess, Agroquinto Ltda. ENAMI-Empresa Nacional de Mineria, SCM Minera Lumina Copper Chile and Grupo TQS. Poland was represented by Grupa Azoty, PKO Bank Polski, Kopex, Mostostal Zabrze, Famur, Mine Master, Ponar Engineering and others.

Communication and CSR Department

It is worth noting that demand for natural resources is growing constantly year by year. In the next twenty years, the world’s population will increase by 350 million people, which is more than live in the United States now. Two hundred new cities of over 1 million people will appear, which is six times more than Europe has at the moment. Construction of a regular one-family house demands 220 kilograms of copper, while each car has from 20 to 45 kilograms of this metal. Further development requires copper. To meet this global demand, mining investments will need to more than double, which will create more demand for products and services associated with the mining sector.