Can you describe how the Covid-19 pandemic impacted Confipetrol Andina’s business in 2020?

Confipetrol Andina operates in the mining, petroleum, and energy sectors, each with different contexts during the pandemic. The petroleum sector was considered essential, and the company was able to maintain a large percentage of work in this segment. However, many mining operations were not initially considered essential, and although we are now back to a higher percentage of working capacity, social distancing measures have made it difficult to achieve pre-Covid levels. Sales and profit were down between 10 to 15% in 2020, but we expect to grow between 10 and 20% in 2021 while maintaining the highest safety and sanitary measures.

Can you name some of the main clients and mining projects that Confipetrol has worked on in recent years?

Nexa Resources is one of our biggest clients, and we have worked for them at Atacocha, El Porvenir, Cerro Lindo, and the Cajamarca refinery. We have also worked on a plant maintenance project for Yanacocha, as well as Marsa, Minsur, Chinalco, Hudbay, Barrick, Antapaccay, Las Bambas, and others. Our third-party services include the operation and maintenance of concentrator plants, open-pit equipment, fleet maintenance, and underground mine equipment, allowing mining companies to focus on their core business.

What measures has Confipetrol implemented to prevent contagion during the pandemic?

Confipetrol has implemented Plan Covid, outlined by the Peruvian Labor Ministry, since the start of the pandemic. The use of personal protective equipment (PPE), such as masks, is required at all times, as well as physical distancing and regular hand washing. Anyone who feels unwell must report immediately to be tested. Distance between beds at mining camps has been increased, and cleaning procedures have been tightened.

Have you noticed any differences between the responses of the mining and petroleum industries to the pandemic?

Peru is a mining country with many regulations and authority involvement, which can slow down processes. The petroleum industry suffered a lot in Q2 2020 but has rebounded and is now steady. Confipetrol works more with the petroleum industry in Colombia and more with the mining industry in Peru. Both industries share high safety standards.

Which markets does Confipetrol see as having high potential for growth?

The south of Peru holds a lot of potential, with companies such as Cerro Verde. New mines that are due to come online, such as Mina Justa and Quellaveco, will require large workforces to run various aspects of the operation, offering opportunities for third-party service providers. Looking further ahead, Buenaventura’s San Gabriel and the Yanacocha Sulfides project are other important projects for Peru.

What sets Confipetrol apart in the third-party services space?

With the exception of the pandemic year in 2020, Confipetrol Andina has grown 20% per year for four years. The main reason behind this is our team’s dedication to offering the highest quality service supported by asset management, which has helped us establish long-term relationships with clients. Another key factor is our safety standards and our behavior-based management system, ensuring employees have a proactive attitude towards safety. This has resulted in one of the lowest injury frequencies in the industry. Confipetrol has received the ISO 9001 certificate for quality, ISO 14001 for environment, and OSHAS 18001 for safety.