Can you give us an overview of Aceros Chilca’s activities and main milestones achieved in 2021?

Aceros Chilca focuses on producing and selling grinding media and castings for the mining industry, with MEPSA being the brand for castings and Aceros Chilca for forged balls. They are currently working on developing balls that are specific to each type of mineral and mine site, in collaboration with their bars supplier, to increase customers’ productivity and decrease the cost of operation. Although 2020 was a challenging year due to the halt in the mining sector, Aceros Chilca managed to achieve positive results, but they did not reach their objectives. However, 2021 has started off very favorably, possibly due to high metal prices, as mines are aiming to increase production. Aceros Chilca changed their strategy and is currently providing customers with cast steel liners for crushers and SAG/Ball mills, which has allowed them to maintain significant volumes and make interesting developments in their alloys, providing customers products that exceed their expectations, especially in terms of mineral processability.

Which of Aceros Chilca’s products and solutions have been in high demand in Peru’s mining sector in the past year?

Aceros Chilca’s two main products that have been in high demand are forged balls ranging from one to three and a half inches and wear spare parts. They add value to their sales process with an effective presence in the mine and valuable engineering services. Aceros Chilca scans the mills and develops new designs jointly with customers to achieve new alloys that allow them to process the mineral further. In the past, they produced an average of 8,000 tons of casted balls per month, but the industry has migrated through the years to forged balls, which are much more wear-resistant, reliable, and allow processing more ores.

What solutions are being introduced in the supply chain to improve efficiency and reduce costs?

Aceros Chilca has a strategic association with their bars supplier, allowing them to improve the product’s chemistry and manufacturing. Aceros Chilca carries out the whole process of transformation to produce the balls, through the heat treatment, achieving the characteristics that customers need. They are currently trying to develop balls that have greater durability together with clients. Similarly, they are present in the mines, working together with customers, which allows them to understand their needs in terms of alloys or the design that allows greater performance and productivity.

What initiatives does the company have in terms of social responsibility?

Aceros Chilca promotes education in Peru and Chile, especially in reading and comprehension, through their Foundation in Peru – Margot Echecopar and in Chile – Sara Raier Rassmus. They have also taken measures to support and protect their workers and the people close to their operations during the pandemic, providing them with oxygen and tests.

What are Aceros Chilca’s objectives for 2022-2023 and the opportunities you see for growth?

Aceros Chilca expects to grow by approximately 30% in terms of castings and 20% in terms of grinding media in 2021. They have already received purchase orders that fulfill a large part of their yearly production. In 2024, they plan to inaugurate their new foundry facility in Chilca, with the goal of having one big, centralized facility with 1,500 tons of monthly production of castings and 7,000 tons of grinding media. Aceros Chilca also sees important opportunities in the export market, as there are significant investments being made in the mining industry worldwide, and they have plenty of experience exporting their products.