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CHILE AUSTRALIA CHAMBER OF COMMERCE 33th Edition - 2017, Santiago de Chile.

INTERVIEW

Mr. Robert Fergusson

New Australian Ambassador to Chile

AUSTRALIA – CHILE

South America’s ‘white petroleum’ enticing Australian investment 1


CONTENT

06 INTERVIEW Robert Fergusson New Australian Ambassador to Chile

10 REPORT Sustainable Minerals Institute’s International “SMI” Centre of Excellence, University of Queensland.

Editorial Director: Melchor Alegría Ramírez Contents: Mkopro - Auscham Interviews and Features: Mkopro Art and Design: Mkopro Digital Post-production: Mkopro Cámara Chilena - Australiana de Comercio AG 2800 Isidora Goyenechea Street, floor 43. Las Condes, Chile. Fono: (56-2) 25706090 - info@auscham.cl

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20 AUSTRALIA CHILE South America’s ‘white petroleum’ enticing Australian investment


EDITORIAL Dear Members and Friends, I am pleased to welcome you to edition number 33 of our Auscham Magazine, the first of 2017. We are proud of the success that we have had with each of our publications over the last three years, and I hope that this edition will be as well received as previous editions.

Australia and, at the same time, a series of smaller missions to Latin American countries, thanks to collaboration from the Chambers of Commerce in Colombia, Peru and Argentina.

This year, we have also decided to place special focus on particular sections of I would like to take advantage of this our magazine in an aim to allow all of opportunity to thank all of those who our members, without exception, to participated in the survey we sent out participate. a few months ago. The opinions of each one of our members is vital for We welcome you to Auscham 2017!! our Chamber as we strive day by day With very warm wishes to improve the benefits we offer you. Furthermore, the information you provide Paulina Martínez Gili is very important for us when we plan General Manager the year’s activities, since we are able Auscham. to focus better on our objectives and provide our services and benefits in a more efficient manner. 2017 will be a year full of both challenges and opportunities. For this reason, we are planning a wide range of activities, including a commercial mission to 3


NEW AUSCHAM MEMBERS

Wide Group

Industry: Consulting Website: www.widegroup.cl

Lithium Power International

Industry: Exploration, Production and Commercialisation de Lithium Website: www.lithiumpowerinternational.com

Orica

Industry: Manufacture and Distribution of Explosives for arge-scale mining projects, quarrying and civil engineering works Website: www.orica.com

ANNUAL MEETING De conformidad a lo establecido en los Estatutos, se cita en Primer y Segundo llamado a los señores socios de la Asociación Gremial Cámara Chilena Australiana de Comercio (AUSCHAM, en adelante también la “Asociación”), a Asamblea Ordinaria de Socios a realizarse el día miércoles 3 de mayo de 2017 a las 18:30 hrs. como Primer llamado en la oficinas ubicadas en Av. Isidora Goyenechea N°2800 piso 43, y se cita en Segundo llamado a las 19:00 hrs. en la misma fecha, a fin de conocer y pronunciarse sobre las siguientes materias: 1.- Rendición de cuentas, balance 3.- Actividades Realizadas 4.- Actividades a realizar para el resto del año.

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5.- Elección presidentes de comité de Innovación y Tecnología. 6.- Elección Nuevo Integrante del Directorio. 7.- Otras Materias Poderes: La clasificación de poderes, si procediere, se efectuará el día de la Asamblea y de forma previa a que este se inicie. Confirmar su asistencia a la brevedad posible al e-mail: xlopez@auscham.cl o al teléfono 25706090


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INTERVIEW

Mr. Robert Fergusson

New Australian Ambassador to Chile The new Australian Ambassador to Chile took up his functions in Chile last January. In his welcome message, he highlighted the solid relationship between the two countries, owing, among other factors, to the free trade agreement in force since 2009, the joint participation in APEC, the significant amount of investment in both directions, and the presence of more than 180 Australian countries in multiple productive sectors of the Chilean economy.

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Mr Fergusson has already served overseas as Counsellor at the Australian Embassy in Beijing, and before that in Timor-Leste, Hong Kong and Indonesia. In Canberra, he served as Director of the Papua New Guinea Section as well as the Counter-Terrorism Section In a conversation with Auscham Magazine, he told us about his experience of living in Chile for the first time, his objectives for his period as


INTERVIEW Ambassador and what he expects for the future 3. What perception do Australians have of Chile? in relations between Chile and Australia. To be honest, I think many Australians still think of Chile as an exotic land far across the sea - but 1 Prior to your arrival in Chile, you served as this is changing. More than 50,000 Australians counsellor for the Australian Embassy in Beijing. travelled to Chile last year and the numbers are What were the highlights of your stay in the growing. More Australian students are coming to Asian giant? Chile to study and work. Additional flights from A continuing thrill for me was seeing the massive Santiago to Melbourne in October will make it changes taking place all around China-physically and easier for people to visit, study and do business. culturally. Western China in particular is changing Our mantra at the embassy has become at breakneck speed. The skylines of Chengdu, #Australia-Chile: mรกs cerca que nunca. Chongqing and many second-tier cities are constantly evolving and whole neighbourhoods 4. It is said that there are great similarities are transformed in months. between Australians and Chileans; in your I was struck specifically by the increasing opinion, which is the one that most unites us? network of links between Australia and China. Right now, I think our approach to the outside With over 130,000 Chinese students studying in world unites us. As two isolated countries with Australia last year, and more than one million smallish populations, we realise that we are very Chinese tourists visiting, there are huge opportunities dependent on international trade to maintain and to build stronger people-to-people links which improve our standard of living. We both rely on underpin the work of business and government. an open, transparent and stable international Around ten airlines now have direct flights to trading system for our security and prosperity, Australia from cities all over China. and we are working together to maintain this in the face of growing protectionist pressures. 2. Is it your first time in Chile? What has surprised you the most about our country? 5. How do you evaluate the current relationship This is the first time I have lived in Chile, though I between Chile and Australia? In the future, how have travelled here before. As I learn more about will Australia develop its relationship with the country, I am amazed by how much Australia Chile? and Chile have in common. These include obvious The relationship is strong. We are like-minded things like population size, large distances, long countries with many shared economic and political coastlines, rich bio-diversity, and good wine. But priorities. We have around 180 Australian there are less obvious things too, such as high companies operating and/or represented in UV levels, aging populations, emerging health Chile, in sectors such as mining , mining issues, and water scarcity. There is much we can engineering and technical services, education do together to address our common challenges. and infrastructure. I would like to see us do more We are natural partners. I met a Chilean man in research and innovation, tourism, education recently who told me that he thought Australians and agriculture. were in fact Latins who speak English!

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INTERVIEW mining industry are the productivity gains we have made in recent years, the advances Australian mining companies have made in engaging the community on environmental and social issues, the adoption of mining technology to solve some of mining’s greatest challenges, and the ability of our mining services sector to become a successful export industry. 8. What are your challenges as the Australian ambassador to Chile? We have quite a small team here in Santiago but a very big agenda. We need to work smarter on taking our bilateral relationship forward in ways that are sustainable and so that we can deliver 6. What do you think is fundamental to do in the best outcomes for business, government, order to increase the level of Australian and the broader community. investments in Chile? Australians understand that foreign investment 9. Would you like to send a message to the is fluid. It will move around the world to wherever Australian business community in Chile? it feels most welcome and secure. A stable We get a lot of support from Australian companies investment environment with clear laws and and we greatly appreciate it. I look forward to regulations is essential. Australian organisations forming strong partnerships with you all! are at the forefront of developing highly sustainable, productive sectors - including in mining. Australia’s research organization, CSIRO, is here doing ground-breaking work with local partners. Well known Australian organisations, such as the Australian Productivity Commission, are helping Chile to modernize and reform. 7. One of the main points in common between both countries is mining. What is the current reality of Australian mining and what are the main strengths of the industry? The mining sector in Australia, like everywhere, has been struggling over the last few years with the downturn in prices of resources. With mining making up around 60 per cent of Australian exports, we can certainly sympathize with the challenges Chile faces with the falls in copper prices. Some of the key strengths of the Australian

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CALENDAR

CURRENT EVENTS Widegroup Consulting concludes collaboration with AUSCHAM on improving experience models for Chamber partners At the end of January, Widegroup concluded its participation in the experience perception study carried out with the partners of the Australian Chamber of Commerce (Auscham). The study was presented to the Auscham Board of Directors during the Chamber’s strategic planning meetings. The study addressed topics of client experience during key interactions between the Australian Chamber of Commerce and its partners. The r e s u l t s , a n a l ysed and org ani se d into a p r e s e n t a t i o n , were presented by Paulina Martínez to the Chamber’s Board of Directors and provided the context for defining the 2017 strategic agenda. “We presented the study to the Board, which

was satisfied with the results obtained as they enable us to visualise the direction to take in this year’s work.” Paula Martinez, CEO of Auscham. For Fernando Ahumada Christiansen, Widegroup® business and innovation consultant and Account Manager for the Customer Experience Manager (CEM) service, it is important to understand that a brand is not what it says about itself, but rather, and especially, what its audiences say about it. “At Widegroup, we are working hard on this aspect. We w a n t t o h e l p c o m p a n i e s i m p r o v e t h e i r m a n a g e m e n t strategies and models and their client operations, combining practical experience, methodological focuses and technology adaptation.”

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REPORT

Sustainable Minerals Institute’s International “SMI” Centre of Excellence, University of Queensland. The University of Queensland’s long and rich history of mining-related research and education is now being exported to Chile through the Sustainable Minerals Institute’s International Centre of Excellence (SMI-ICE-Chile). The establishment of the Centre followed UQ’s successful application to CORFO’s “Attraction of International R&D Centre for Competitiveness 2.0” Program. The partners in the Centre, UQ, JKTech South America SpA ( JKSpA) and the Universidad

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de Concepción (UdeC) have built a multi-year platform for research and capacity building that will engage with industry, government, universities, research organisations and communities to address the major challenges facing the country’s minerals sector. As the country produces more than a third of the world’s copper, identifying productivity improvement pathways through new technologies and optimising


REPORT The Centre will be established as a world-class platform for the commercialisation of SMI-ICE-Chile research. With a collaborative framework and a proven model of good governance, Professor Mulligan said the initiative deepens the productive relationship between university centres and private industry stakeholders.

efficiencies in procedures and processes will help ensure mining continues to provide the revenue and opportunity for the economy. Beyond the research lines in the production area that are developing the next generation of concentrators and smelters, the Centre also has a major emphasis on the environment, and specific projects around tailings, water and energy are in the pipeline. Given the high-profile of global incidents associated with mine tailings storage facilities in recent history, a greater understanding of not just the technical, but also the interrelationships with the environmental and critically the community aspects of managing these facilities is paramount.

“By extending SMI’s business model from Australia, the Centre will be self-sustaining and will continue to grow and extend its reach for many years to come. The involvement of JKTech, combined with SMI’s globally-tested and recognised technology transfer frameworks, will see an introduction of multiple and multi-faceted pathways and new dynamic approaches to research commercialisation and technology implementation in Chile.”

“SMI-ICE-Chile will build upon extensive expertise that already exists in Chile in many areas of mining research, and UQ’s involvement and contribution through the Centre will be a facilitating mechanism for Chile to generate a strong international profile in the area of sustainability,” said SMI’s Director of Environment Centres, Prof David Mulligan. “Importantly, the Centre of Excellence will progressively attract, train and develop an increasing number of highly skilled Chilean professionals across a spectrum of disciplines – ensuring intellectual capital will remain within the country,” he said.

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REPORT

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AUSCHAM NEWS

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January

The Auscham Energy Committee held an “Energy Challenges for Chile 2017” discussion with Minister of Energy Mr Andrés Robelledo, during which the Minister set out the priorities for 2017 in matters of regulations and adapting the electricity grid to new technologies. The meeting, held in the San Cristóbal room of Carey & Cía, was well attended by partners and friends of Auscham, who were able to voice their concerns to the Minister with respect to pertinent issues. The Minister responded in detail to each participant.

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Auscham met with Gonzalo Cid, CEO of Sonami, to plan joint actions for 2017. The meeting addressed topics of interest to Chamber members and raised the possibility of carrying out business rounds in Australia, focusing on small and medium-sized mining activities.

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At a joint meeting of the Auscham Board of Directors and the IT (Information Technology) Committee, it was agreed to change the committee’s name to the Innovation Committee in order to expand the expectations, activities and topics it addresses.

January

January

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AUSCHAM NEWS

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January

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January

09 March

The first Auscham Board meeting of 2017 was held on 25 January, at which time the new Australian ambassador to Chile, Mr Robert Fergusson, was welcomed as honorary director of our chamber.

The Australian rugby club Warringah, in the midst of their visit to Chile to promote rugby and to learn about Chilean culture, took time out of their schedule to celebrate Australia Day with members of Auscham and the Australian community in our country.

Auscham, together with Austrade, held the talk “Foreign Bribery; Strategy to Avoid and Assistance from Government�, presented by Mr David Tonkin, Chief Legal Counsel of Procurement & Fraud, Austrade Australia; Mr Alberto Precht, Executive Director of Chile Transparente; and Mr Marcos Rios, partner of Carey & Cia. During the talk, Mr Tonkin referred to the challenges Australia faces and the measures it has taken in matters of bribery and corruption. He also examined transnational bribery and new challenges for developing countries.

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ENCOUNTERS

VANTAZ At a meeting between Auscham and Mauro Mezzano, co-founder and partner of Vantaz, an event with Chamber partners was planned for the first half of 2017 at which Mauro Mezzano will share his experience of internationalising his services for Australia, which initially began with a two-year project.

MOLYCOP Auscham representatives held a meeting with Darren O’Connell, Global Strategic Marketing Manager of MolyCop, to learn about the company’s new projects as well as its projections and goals for 2017. During the meeting, the Chamber expressed its commitment to supporting the actions to be taken during the year.

OSMOFLO Auscham visited Osmoflo and held a meeting with its executives to discuss the company’s main interests in order to develop a strategic plan for a possible trade mission to Australia in the second half of 2017.

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ENCOUNTERS

ARAUCO Our Chamber held a meeting with Robert Busch, Asia Sales Director of ARAUCO, to inform him of Auscham planning during 2017, to place its services at his disposal and to explore possible joint actions to take during this year.

GASVALPO During a visit to the company Gasvalpo, representatives of Auscham held a meeting with Luis Kipreos, the company’s CEO, to learn about Gasvalpo’s challenges and new projects and to explore how the Chamber could help them in their business activities.

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QUICK TIPS FOR BETTER ENGLISH

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QUICK TIPS FOR BETTER ENGLISH

Prepositions are Tricky! Prepositions (in, on, at, by, over, from etc.) are little words that tend to give big problems when you are not using your native language. They often change from one language to another, usually for no logical reason. So, getting them right is a challenge! Here are some tips to help you. ON, IN, AT - When Used to Indicate TIME There are some good rules here, and they don’t have exceptions (which is unusual for English)! - ON: for a specific day (date or day of the week) E.g.: On Friday, on 3 May, on my birthday - IN: for a time period (year, month, week, part of the day) E.g.: In 2016, in January, in the first week of April, in the afternoon - AT: for times of the clock, religious festivals and specific points in time: E.g.: at 4pm, at Christmas/Easter, at midnight, at the end of the year ON, IN, AT - When Used to Indicate PLACE It is not quite so easy here – these are guidelines rather than strict rules. - ON: for something on a surface and for public transport E.g.: on the table, on the page, on the bus, on the plane

- AT: for other places! E.g.: at the supermarket, at the cinema, at the beach Remember though, that we say at school/university, at work, at church, at home (not “in” and no “the”). Other Difficulties There are lots of words followed by specific prepositions that are different from in Spanish. Plenty of mistakes are made with these, so you have to be particularly careful: - Commit TO (not “with”) - Consist OF (not “in”) - Dream ABOUT (not “in”) - Similar TO (not “than”) - Focus ON (not “in”) - Related TO (not “with”) - In accordance WITH, but according TO.

- IN: for inside something or within a defined space (including countries, cities, towns) E.g.: in Chile, in Concepción, in the house, in the box, in the garden

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AUSTRALIA - CHILE

South America’s ‘white petroleum’ enticing Australian investment Australian investors are taking a leading role in developing South America’s lithium triangle, a region of high-altitude brine lakes that spans Argentina, Chile and Bolivia.

well as being an essential ingredient in the production of battery materials such as cathode and electrolyte. It is also used to manufacture long-life lithium-ion batteries used in mobile phones, consumer electronics, power tools, Lithium, also referred to as ‘white petroleum’, electric bikes and hybrid and electric vehicles. comes from the primary production of brine or hard rock (spodumene ore) which is largely Shannon Powell, Austrade’s Senior Trade Commissioner concentrated in Australia, Chile and Argentina. for Andean Latin America, said Australian expertise in mining is widely known and regarded Global demand for lithium has grown rapidly over but increasingly in demand as a key producer of the past decade, with lithium compounds used to lithium. manufacture ceramics, glass and electronics, as 20


AUSTRALIA - CHILE Australia, Chile and Argentina are the world’s biggest producers of lithium, respectively, with nearby Bolivia a potential disrupter in the market, said Powell.

Lithium and Potash Brine Project (-pSal de Vida) in Argentina. Sal de Vida is an area of 385 square kilometres which presently accounts for 60 per cent of global lithium production.

Bolivia has the world’s largest potential reserves of the metal – projected to be around nine million tonnes in excess of reserves in the US, China and Australia.

Australia’s Ocrocobre Limited, which is listed on the ASX and Toronto Stock Exchange, has also invested in Argentina. The company built a large-scale, de-novo brine-based lithium mine at its flagship Salar de Olaroz project – the first While Bolivia has faced challenges to achieving such mine to be completed in over 20 years. its production goals, the first shipment of 10 tonnes of lithium carbonate valued at US$70,000 was The Salar de Olaroz project has a measured and sent to China in August last year, added Powell. indicated resource of 6.4 million tonnes of lithium carbonate equivalent and is capable of sustaining A supply shortage increased lithium prices throughout current continuous production for 40-plus years 2016. Goldman Sachs has projected lithium with only 15 per cent of the defined resource demand could triple by 2025 largely driven by extracted. the production of electric vehicles such as the Tesla Model S. In Chile, ASX-listed Lithium Power International Limited has entered into a joint venture with Powell said Australian investors have been buoyed Minera Salar Blanco and Li3 Energy to explore and by regulatory changes in Argentina and Chile, develop the high-grade Maricunga lithium-brine which have resulted in enhanced opportunities. project in the country’s north-east. Last year, Chile established a Lithium Committee within CORFO – its development agency – to develop, monitor, regulate and manage existing contracts,’ she said. ‘Among its first endeavours was issuing a call to tender for the exploration of the Maricunga and Pedernales salt flats owned by state-run Codelco.

Through its Argentinean subsidiary, Lithium Power also holds six granted tenements covering an area of 61.5 square kilometres in the Centenario lithium brine salar, which is located within the Salta province of the Puna Plateau.

‘The white petroleum rush is also providing opportunities for Australian engineering and In Argentina, President Macri’s administration METS companies in the region,’ said Powell. moved quickly to welcome foreign investors, creating a Ministry of Energy and Mining and ‘Australian firm GHD is already exploring promising eliminating barriers to investment in the sector opportunities in Argentina and Chile,’ she added. with a range of tax reforms, noted Powell. Galaxy Resources Limited, an Australian Securities Exchange (ASX)-listed lithium-focused resources company, is planning to develop the Sal de Vida

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NEWS OF OUR ASSOCIATES

In Sydney, ALABC honours Vantaz with the Latin America Business Excellence Award 2016 Vantaz’s bridge building between Australia and Latin America was recognized by the jury that conferred the Alabc award on this consulting company in the small and medium-sized business category. The award, given out by the Australia Latin America Business Council (Alabc) since 2002, together with the Council on Australia Latin America Relations, highlights those companies that foster trade between the two regions. The award ceremony, held in Sydney and attended by the Governor General of Australia, Sir Peter Cosgrove, acknowledged Vantaz’s internationalisation strategy: “The founding partners have focused their work on innovation and creating value for their customers, establishing strong and strategic relationships. They have expanded their network adding other service companies as innovative as them, a nexus that undoubtedly has had a positive impact in the value they develop to their customers”.

for this organisation, which was founded in 1989 to promote business exchanges in this geographical area. The Alabc added that “their success and growth reflects a clear focus on the execution of its strategy and the creation of strong partnerships throughout the value chain”, a policy reflected in their standing as “preferred supplier of a major corporation”, alluding to the framework agreement that Vantaz holds with BHP Billiton.

To Mauro Mezzano, co-founding partner of the consulting company and head of the Vantaz Australia office, the award confirms their bet on globalisation and how it has been received by the market. Additionally, he states, “this recognition validates us as one of the few mining Chilean companies which is exporting services and helping others to explore the Australian market”. He indicates that the relationship between the two countries has matured, and that the many ties that Chile has today with Australia ensures an ever-deepening reciprocity. As was stated in the With over 15 years of experience, Vantaz has award ceremony, “today, in the Pacific Ocean, the helped the mining industry to manage change business moves in two directions”. and to improve processes and corporate systems, among other services, and today, in addition to its offices in Chile and Australia, it also has representatives in Peru and the United States. For Alabc, the company represents “the mature and changing face of the trade relations between Australia and Latin America”. This is a key factor

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NEWS OF OUR ASSOCIATES

Reusing cooling water at thermal power plants (ZLD-MLD) Water treatment plants (microfiltration and reverse osmosis) operate with recovery rates of 60-70%, significantly reducing discharge volumes. This technology can be complemented with new stages of reverse osmosis to reduce Challenge: Thermal plants’ cooling towers have discharge amounts even further. Consequently, a discharge or purge flow which, as it becomes an increase in temperature could result in more concentrated during recirculation cycles, vacuum evaporation (ZLD, zero liquid discharge). becomes “loaded” with soluble salts and suspended solids that make it very difficult to reuse this Operation: Both evaporation towers and water water without first treating it. Purge water is treatment plants can be monitored 24/7 with normally disposed of in discharge flows, and care Osmoflo’s patented operating software known is taken to comply with environmental standards. as Plant Connect. This tool allows for savings Thermal plants are increasingly considering the in constant on-site supervision and controls the possibility of using this water to optimise their system through screen displays and alarms. circuits and free themselves of environmental Use of this technology is the starting point for regulations. ZLD or MLD (minimum liquid discharge) systems Osmosflo has been involved in several projects for thermal plants with open evaporation towers. that include designing a water treatment plant to remove suspended and dissolved solids, producing water of a quality that could be used in other areas of the plant. Treatment plants have a micro (ultra) filtering stage that removes suspended solids that accumulate in cooling towers. Even when these plants are designed with side-stream filtration, dissolved solids are then treated through reverse osmosis. Thermal power plants push large amounts of water through their cooling circuits. The following is a brief description of using cooling towers for reverse osmosis.

With this treatment, cooling towers are able to reduce total dissolved solids from over 3,000 mg/l to less than 200 mg/l.

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NEWS OF OUR ASSOCIATES Opens new facility in Peru Earlier this year, international mining consumables supplier, Moly-Cop, finished the construction of a state-of-the-art manufacturing facility in La Joya, Peru. In Spanish, “La Joya” translates as “The Jewel”, and Moly-Cop’s latest grinding media facility in La Joya, Peru has certainly been the jewel in the crown of Moly-Cop’s international manufacturing facilities since it was fully commissioned earlier this year.

in May 2015. The facility commenced operations in November 2016 and is currently ramping up to its design capacity to manufacture 174,000 metric tonnes per year of grinding media. The facility also has the flexibility for future market growth with space allocated for additional production capacity.

As the new facility is situated in one of the driest environments on the planet, the design of the Moly-Cop has operated a grinding media facility in new facility has incorporated technologies to Arequipa, Peru since 1981, with an initial capacity reduce the water consumption of the plant to the of 10,000 metric tonnes per year. For the past lowest within the Moly-Cop group. 34 years, this operation has gradually increased its grinding media production capacity to 60,000 Benefits metric tonnes per year as a consequence of the Given its strategic location, the facility is an increasing market demand from the Peruvian extremely important supplier of grinding media mining market for grinding balls. However, the to customers in southern Peru. Moly-Cop Country continuous market demand in the region and Manager for Peru, Javier Castro, says “Moly-Cop technological advances in the production of has an international supply network of nine grinding media has resulted in Moly-Cop grinding media facilities located in key mining management making the decision to construct regions around the world. The La Joya facility, the new grinding media facility just 48 km from is a state-of-the-art grinding media facility that Arequipa in the town of La Joya. will provide us with the capability to meet not only the current market demand, but also The location of the site is important, as La-Joya is t h e forecasted growth for grinding media in located close to major southern mining operations southern Peru over the next five years. Due and projects such as Freeport’s Cerro Verde mine, to our close proximity to our customers, we can the Cuajone and Toquepala operations of SCC, provide a short and responsive supply chain and Glencore’s Antapaccay, Hudbay’s Constancia and in-market presence for technical after-sales MMG’s Las Bambas mine. Moly-Cop also operates support”. The facility will also have a positive a plant in Lima that services the central and impact on the local community. “The facility will northern grinding media markets of Peru. be a major employer in the region, both directly and indirectly” says Castro. The Project This greenfield project was constructed on a 148,000m² site located in the La Joya District, 48km from Arequipa. Civil works commenced in October 2014, with building construction starting

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REPORT

Fidias Proyect Felipe Villarino, CEO of the company FIDIAS and candidate for president of our chamber’s Innovation and Technology Committee, gives us detailed information on the large investments to be made to help grow operations in Latin America. The focus will be on strengthening technical capability and increasing its telecommunications infrastructure to allow for continued improvement in service quality and coverage for its clients. Felipe Villarino is noted for his role as CEO of FIDIAS, which has a project developing a concept using smart urban buildings to integrate a multifunctional service that produces renewable energy even as it connects and integrates communities.

2017 in Barcelona, where it presented its new solutions for developing permanent, sustainable innovation in communication among communities. The CEO explains that the worldwide tendency today is to develop technology, telecommunications, urbanisation and sustainability. He says that this is why it is important for them to be important players contributing to these niches. Felipe Villarino adds that the company’s main clients have recognised and positively evaluated them today as partners, opening doors to the world’s most important telecommunications companies, and that FIDIAS has become a strategic partner with the country’s municipalities, providing concrete solutions in terms of sustainability and smart city initiatives. The FIDIAS project, aware of the enormous need for strengthening worldwide telecommunications, is developing its expansion plan for Latin America, which will help OECD governments solve the social, economic and cultural challenges to development in their countries.

FIDIAS has become today’s leader in providing global solutions to its clients, focusing primarily on developing FTTx, RF and various solutions geared toward developing cities that are more sustainable and more environmentally friendly. The company invests heavily in developing and innovating its solutions, and it continues to generate new services and solutions that break with traditional moulds through projects it plans to present to the market during 2017. In February, it took part in the Mobile World Congress

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OPINION

How the Recycling Law works By JOAQUÍN VICUÑA Associate, Alessandri Law Firm

A new standard in waste management: the regulation focuses on waste prevention and recovery. Published on 1 June 2016 was the Framework Law for Waste Management, Extended Producer Responsibility and the Promotion of Recycling. This main premise of this important regulation is that “all potentially recoverable waste must be used for this purpose, thus avoiding its disposal”, and it gradually imposes new obligations on producers, importers, exporters, waste generators and public institutions such as municipalities, the Environmental Superintendancy and others. The regulation also establishes a catalogue of priority products to be given special treatment for which the producer, as defined broadly in the law, must comply with a number of additional provisions. Additionally, included in the law’s provisions is a system for waste management, goal achievement and education. Priority products according to the law are: • lubricants • electric and electronic devices

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• batteries, all types • containers and packaging • tyres. The law also establishes Extended Producer Responsibility (EPR), recognises current environmental legislation in matters of waste management and stipulates new waste management competencies for the Environmental Ministry: • certification, marking and tagging • deposit and reimbursement • eco-design • separation mechanisms at point of origin and selective collection • mechanisms for environmentally rational waste management • mechanisms for preventing waste generation. The main obligations for those who produce and/or import priority waste products are: 1. Register with a public listing of businesses and/or manufacturers. 2. Use a management system to organise and finance collection and treatment of products.


OPINION

3. Ensure that waste is treated by authorised individuals. 4. Comply with collection and recovery goals for these products. Producers of priority products must manage and finance the collection of such priority waste through an authorised waste manager. Similarly, they can also cooperate with municipalities by signing agreements to separate waste at the point of origin, collect selectively, etc. They will also promote environmental education on prevention and recovery, and will design and implement strategies for communication, awareness and prevention measures. Specially defined basic recyclers will be recognised as waste managers for the Law for the Promotion of Recycling. In addition, they will be required to register to participate in the project for five years, and they must obtain certification under the Sistema Nacional de CertificaciĂłn de Competencias Laborales (National System for Labour Competency Certification).

EPR: The Environmental Ministry’s obligations in implementing the EPR: 1. Draw up regulations establishing procedures for issuing goal-setting decrees. 2. Draw up EPR decrees with goals for priority products. 3. Implement and administer a registration system and information platform (to be part of the RETC – Registro de Emisiones y Transferencias de Contaminantes). 4. Draw up regulations for the recycling fund and manage its implementation. 5. Draw up regulations for moving waste across borders. 6. Review and authorise management plans. 7. Design and implement environmental education programs.

The Environmental Ministry must also issue several decrees, including a set of regulations that establishes the procedure for authorising goals and implements and manages a registry system and information platform. In addition, it must review and authorise management plans, design and implement environmental education prog ra m s, p rov i d e ove rsi g ht t hrough the E nv i ro n m e nt a l Superintendancy, and other tasks. The Environmental Superintendancy (SMA, from its Spanish acronym) has the power to inspect and penalise infractions in this regard, including issuing fines and written warnings.

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Auscham Magazine N°33-  
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