Article first published in GBR Brazil Mining 2024 edition. Reprinted with permission.
Can you update us on the recent developments from Ausenco in Brazil?
A lot has happened in Ausenco in the last year. We are working across numerous commodities and with over 20 different clients in Brazil. Compared to 15 years ago, when we primarily dealt with iron ore, we now have projects in gold, copper, graphite, lithium, titanium, iron ore and other materials. And more than 60% of our project portfolio is focused on metals driving the energy transition and decarbonization.
We are also supporting junior companies in their early stages, not just from an engineering perspective but supporting their businesses and supporting the reports necessary to secure funding to develop their projects. Engaging early with clients is one of our main strengths. We are working on feasibility studies for lithium, rare earths, cooper, gold, nickel, cobalt, titanium, graphite and iron ore projects in Brazil.
Our local team is focused on providing comprehensive solutions for complex projects, reducing plant footprints and using efficient processes that reduce consumption of key resources like water and power.
The social impact of these projects is also important to us. Where possible, we engage with local communities and look for ways to create jobs and support infrastructure development.
How is Ausenco adapting to current commodity prices, particularly for nickel and lithium?
Despite the fact that prices for nickel and lithium were better before, we remain optimistic about the long-term outlook of these commodities. While nickel prices are low now, the anticipated future demand will drive investment in this sector. Regarding lithium, significant reserves across South America offer promising prospects. We are actively involved in projects located in Brazil that involve hard rock lithium, which is expected to benefit local communities and align with broader market trends.
What is Ausenco's differentiated approach to working with junior mining companies?
Our approach to working with junior companies extends beyond traditional engineering solutions. We provide integrated solutions that consider the entire business model and project feasibility. This approach includes offering tailored solutions that address specific client needs, focusing on cost reduction, environmental sustainability, and operational efficiency.
Ausenco differentiates itself by providing solutions that are not only innovative but also environmentally sustainable and cost-effective. Our designs typically feature a reduced footprint, achieving 25-30% smaller plant sizes than standard designs. We focus on minimizing water and energy consumption, which leads to lower CAPEX and OPEX. This approach results in simpler, more efficient plants that are environmentally friendly, supporting our client's sustainability goals while reducing overall costs.
Can you discuss some challenges faced by the sector?
The permitting process in Brazil is stringent and requires high environmental standards. Our rigorous approach ensures that projects meet these requirements, which is crucial for operating and constructing plants in Brazil. Despite these challenges, Brazil's permitting, and environmental standards are considered strong and supportive of sustainable mining practices. Regions such as Minas Gerais and Mato Grosso and Pará have strong mining growth potential and are seeing increased interest, particularly in lithium and rare earths projects. Government support and efforts to streamline processes are helping to accelerate development in these regions and the ongoing exploration and investment in these areas reflects their growing importance in Brazil's mining sector.
How have environmental and social stewardship practices evolved in Brazil's mining sector?
Brazil's environmental and social stewardship practices have significantly improved, with a heightened focus on sustainability, stricter legislation and higher standards for environmental practices. Mining companies are now committed to providing sustainable solutions and adhering to advanced technological and regulatory standards. This shift reflects a broader commitment to improving practices and minimizing environmental impacts.
Brazil is well-positioned, with 77% of its energy coming from green sources, which enhances its attractiveness as a mining destination. Advanced water and energy management technologies are prominent in Brazil's mining sector. We are implementing solutions to reduce water usage and energy consumption, which are critical given Brazil's diverse geographical conditions. Our global expertise allows us to apply these technologies effectively, adapting to specific regional needs and contributing to more efficient and sustainable mining operations.
What are Ausenco's objectives for the next 12 months?
We are focused on growing our business while continuing to provide innovative solutions for complex projects. Our objective is to always find a better way to address our clients’ needs, while delivering effective solutions and adapting to evolving market demands.