With the high metals prices, have you observed a surge in demand for drilling services in 2021?

Yes, we have been receiving many requests from clients who want to compensate for the lost production during the lockdown. Moreover, the current high metal prices have also contributed to the increase in the demand for drilling services. However, one of the significant challenges that we are facing is the resistance of local communities who fear the entry of outside workers into their villages. Mines usually mobilize thousands of people from outside communities, and this is considered a threat due to the ongoing health crisis.

Can you elaborate on some of the key projects that Geotec has been working on in Peru, and which equipment has been in high demand?

Currently, our largest drilling project is at Las Bambas, where we have deployed 13 rigs working in the Cotabambas region. We also have an important project at Antapaccay, where we have been drilling water wells using large rotative drilling equipment, and at Yanacocha, where we have five of our machines working. In addition, the contract that we won to participate in the development of Line 2 of Lima’s Metro, through a water well program, has been a significant milestone for our company.

Have you observed an increase in the adoption of automation technology for drilling services?

We have been implementing technology that allows the automation of the drilling process for almost 60 years, focusing on the safety of our operations and environmental care. In 2017, we implemented more than six teams with Rod Handler technology at two of our main operations. Our newest acquisition in technology includes a Canadian Foremost (Model DR24XHD 130K) dual rotary drill rig for water wells drilling, which will be the largest in Peru. This rig will enable us to drill 500 meters deep water wells, using the Dual Rotary drilling system with a diameter of 17.5 inches.

In your opinion, what are the biggest challenges and opportunities for drilling contractors in Peru today?

Apart from social conflicts, finding qualified personnel that know how to operate drilling machines is a significant challenge. We have been providing training to our workers in this regard for several years, but with the increasing demand for drilling services, it may not be enough, and we may have to train more people or automate more processes. On the other hand, there are several opportunities for drilling companies as many clients are looking to make up for lost activity in 2020 and take advantage of strong metal prices. Another opportunity includes finding long-term contracts that enable drilling companies to invest in technology and safety. For some time now, mining companies have requested that their contractor complement their proposal with services such as sample logging, directional drilling, core drilling, among others. Geotec has implemented the directional drilling service within its commercial offering since 2019.

What is Geotec’s strategy to grow in the coming years?

Our strategy is to become strategic partners of mining companies through long-term contracts that strengthen our relationship and the development of safe and efficient workplaces. We aim to train drilling workers and implement automation solutions wherever possible.

What direction do you envision for Peru’s mining industry by 2022?

As an industry, we hope to have a government that supports investments and provides stability to the country and its investors. We also hope to improve relations between mining companies and communities and to see an improvement in the ongoing Covid-19 crisis. If these factors are resolved or at least improve, the outlook is very positive for the years ahead.