How did the pandemic impact IPESA’s performance in 2020?

Overall, 2020 was a surprising and great year for IPESA despite the conditions brought on by the pandemic. As the lockdown eased in July and August, recovery was faster than expected, resulting in a 15% growth compared to 2019. As a company that provides both machines and services to the agricultural sector, which was allowed to continue operating during the pandemic, we were able to keep our operations going on a limited basis. We provided essential services and parts to the necessary sectors in Peru. After the first lockdown ended, government and private investment quickly turned around, which led to a significant increase in machine spending in the second half of the year. The business accelerated in Q4, and 2021 has started on the same upward trajectory. The pandemic allowed us to strengthen our business relationships with our most important clients.

Which of the mining equipment IPESA distributes has been in high demand in recent months?

In 2020, IPESA expanded its mining services, particularly its heavy machinery by adding two 85-ton Hitachi ZX-870 excavators. These excavators are currently operating in Shougang’s Marcona iron-ore mine south of Lima and gold mines in Cajamarca. This expansion is essential to our company because our traditional mining focus has been on support equipment, particularly material movement during the pre-construction phase of the mine and general road maintenance. In addition, we focus on innovation and non-traditional equipment for the transportation of materials. For example, we commercialize Morooka equipment, a Japanese rubber track carrier that allows for greater flotation. Currently, these machines are operating in the San Rafael tin mine with Minsur. Lastly, Wirtgen surface miners are revolutionizing traditional mining processes by avoiding the blasting step in the mining process.

How is IPESA participating in the transition from diesel machines to hybrid and electric equipment?

While there is a desire to move towards electric equipment, Peru is lagging slightly behind due to the higher cost of this technology at the moment. However, in mining and construction, IPESA offers a variety of hybrid equipment, particularly John Deere front loaders and excavators. With regards to the Wirtgen Group, our Kleemann equipment (crushers) comes with electric generators and engines in conjunction with the traditional diesel engine.

What extra capacity does IPESA’s new logistics center in Lima give the company, and how does it benefit clients?

Our logistics center, inaugurated in September 2019, provides over 17,000 square meters for parts and equipment. It has tripled IPESA’s spare parts availability and centralized our machine dispatch. It has reduced delivery time from the moment of purchase by about 40% and doubled our machine warehousing capacity. The reduced lead times and greater inventory capacity have greatly benefited our clients.

Why do you think the integration of agriculture and mining is important?

The mining industry’s greatest challenge in Peru is its relationship with local communities. The country traditionally has been suspicious of large foreign corporations and governments, so private companies bear the burden of bridging the divide. At IPESA, we have always worked closely with local communities, providing them with training so they can understand the benefits of potential added business when it comes to mining operations. We believe that integrating agriculture and mining is essential for building trust between the mining industry and local communities.