Cluster Wants Chihuahua to Meet Expectations

Mining clusters in Mexico have received much attention due to their promising role in helping to develop local supplier bases and increase the overall competitiveness of Mexico’s mining industry. Gerardo Alberto Durán Alarcón, Manager of Chihuahua’s Mining Cluster (CLUMIN), explains that the cluster was born in February 2013 from the need for higher quality suppliers in the state’s mining sector. “Above all was the belief that developing the supplier base would bring better opportunities and lower costs for businesses in Chihuahua,” he shares. The cluster aims to incentivize any company that might add value to the mining supply chain, from microenterprises to large conglomerates, and is committed to the development of the state’s mining industry, while operating responsibly according to the law.

To fuel its objectives, the cluster has begun to implement a number of initiatives to maximize the impact of the efforts of its more than 70 members. One of these initiatives includes the Meeting of Suppliers, organized in collaboration with the Ministry of Economy and the Chihuahua state government. This annual event brings together more than 50 suppliers, mostly local, and offers them a chance to showcase their products and services to the most important mining companies in the state. The event serves as a platform for exchange between suppliers and the acquisition departments of mining companies. Through such endeavors, CLUMIN advances toward the integration and larger participation of all stakeholders in the Chihuahua mining sector and beyond, according to Durán Alarcón.

CLUMIN’s second objective is the promotion of its members’ products and services to the state’s mining companies. The cluster is thus working on the creation of a state supplier directory to reach this goal. “The main benefit of the cluster is the link between suppliers and mining companies. Suppliers have greater opportunities to grow their business when they are part of the cluster,” states Durán Alarcón. “For example, CLUMIN will seek to help its members win private tender offers, as long as the member is competitive in terms of price and quality.” That being said, the cluster already takes great pride in only selecting members that are able to offer quality products and services that are relevant to the mining sector.

Among the cluster’s initiatives is also its project to standardize security protocols in mines in the state. “Each mine has a different security protocol which it enforces whenever a new supplier begins working in the mine. This protocol actually represents downtime and is an expense for the company since it needs investment in food and lodging for the supplier’s employees. We are aiming to create a certificate that will unify the security protocols of the state’s mining companies, thus endorsing supplier knowledge of security protocols in the mines,” shares Durán Alarcón. The project has been met with approval by mining companies due to the increase of efficiency that it will bring to the security process, which translates into decreased downtime. This certificate will also favor members of clusters over other suppliers and, if it proves successful, it could be expanded towards a nationwide certification program. “It is an ambitious project but we are already seeing that it is possible,” expresses Durán Alarcón.

As for its goal to create synergy among the cluster members, the “CLUMIN Circle” initiative has already paid off. This initiative, based on incentivizing mutual discounts among members of CLUMIN, has already led to concise proposals to offer services at preferential prices to cluster members, ranging from industrial catering to legal services. However, Durán Alarcón states that it has not been easy to promote collaboration among its members. “There is an erroneous idea that Mexicans should work alone. Through projects such as the mining cluster, we are showing that companies in Mexico can work together,” he adds. The synergy the cluster is trying to create also reaches out to universities in the state, with which it is forming alliances to deal with community matters, social responsibility, innovation, and research. “Through the universities’ business incubators, we are looking to develop productive projects that will create benefits for the mining sector and for the surrounding communities,” Durán Alarcón states. Through such initiatives, CLUMIN aims to advance from a stage of consolidation and strengthening to a stage of project development, making the cluster “a highly recognized and transcendental institution,” says Durán Alarcón.