Promoting the Chilean connection

1 of 2Andres Poch, president of the Association of Chilean Engineering Consulting Companies, is leading a campaign in Canada to foster increased interaction between Chilean and Canadian engineering and mining companies. — Photo by Sebastian Martinez

2 of 2Andres Poch was in Vancouver January 9, 2012, to talk to British Columbian engineering consulting firms and mining industry representatives. — Photo by Sebastian Martinez

Andres Poch, the president of the Association of Chilean Engineering Consulting Companies, said now may be the right time to expand into the South American country as the mining industry booms and demand for engineering consultants borders on critical. Poch was in Vancouver January 9, 2012, to talk to British Columbian engineering consulting firms and mining industry representatives.

Poch said one reason engineering consulting firms should consider expanding is because their Chilean counterparts are currently working on five massive Latin American mining projects that will keep them busy for the next five years. As a result, Chile needs between 1,500 to 2,000 engineering consulting professionals now.

In comparison, due to the economic downturn many Canadian engineering consulting firms, including ones involved in mining, are not currently working at full capacity. Firms that open an office in Chile or that build business alliances with Chilean companies might solve that problem.

Other reasons for Canadian engineering consulting firms to consider moving into Chile include the country’s world-class engineering reputation. Chilean engineers have been working on huge mining projects in difficult terrain for years and can offer excellent technical expertise to engineering and mining companies that want to expand not only into Chile, but also into the rest of Latin America and beyond.

Chile’s capital, Santiago, has already become an office hub for many of the world’s major engineering firms. Their offices join those of many of the world’s largest mining companies, including Canadian giants Barrick Gold Corporation, Teck Resources Limited, Kinross Gold Corporation and Goldcorp Inc.

This concentration of mining and engineering muscle, composed of many companies featuring Chilean senior executives, helps point to another reason why Canadian engineering consulting and junior mining firms should consider having a presence in Chile. The synergism created by having so many engineering consulting and mining firms located in one place is definitely advantageous.

“Another issue I think is Spanish,” Poch said. “All the projects that we are developing need to be constructed by local people. And that’s why all information needs to be related in Spanish.”

Companies that build partnerships with Chilean engineering consulting firms can utilize that advantage. And as more Canadian engineering consulting firms establish a presence in Chile, expansion becomes more attractive for Canadian junior mining companies.

“Many juniors have an interest in Latin America — in Brazil, in Peru, in Ecuador, in Colombia,” Poch said. “So the first action they will do is contact their friends in Chile, to make a design or prepare some reports as a first step in a mining investment. So in order to attract juniors, we need Canadian consulting firms.”

There are other advantages for engineering consulting and junior mining firms that want to do business or establish partnerships in Chile. Although expensive by South American standards, the services and expertise offered by Chilean engineering consulting firms are 50 to 60 per cent cheaper than those offered by Canadian, American or European firms.
Working in Chile is also lucrative.

“The price of an engineer is the same here as it would be anywhere else in the world,” Poch said.

Other recent obstacles for investment in Chile have also been addressed, Poch said. Damage to the country’s infrastructure due to 2010’s massive earthquake and tsunami has been repaired. Chile’s government has also applied new regulations to many of the country’s smaller mines to try to prevent mine disasters.

Poch’s visit to Vancouver was followed up by a visit to Toronto and marks the third time a delegation from his association has visited Canada in the past three months. The association wants to officially launch the Chilean brand in Toronto in March to help encourage more Canadian engineering and mining investment in Chile and to foster closer business relations between two veteran mining countries.