Diversification as Protection from Industry Downturn

Q: How has FIMSA evolved within the mining sector in Mexico, and what makes it stand out from its competitors?

A: The company was founded in the 1970s when the Mexican mining sector was dominated by small businesses. There were few foreign companies operating in the country, and FIMSA made the decision to focus on providing for small and medium-sized enterprises, leading to significant early success. When it then became less costly to enter the Mexican mining sector, many foreign companies began investing. Faced with this challenge, FIMSA decided to stop manufacturing equipment for all levels of the mining process, which we had been doing previously, and instead focus on the trituration stage specifically. In order to make ourselves less susceptible to global drops in prices of precious metals, we diversified our industry focus and began providing for the construction sector, where there was also demand for our trituration technology. This decision helped us survive during the downturn in the mining industry and established our name as a specialist in trituration, and we are now known in both the construction and mining industries as experts in this field. As a result of the current downturn, we searched for commercial partners and allied with several financial sector leaders from both the international and domestic spheres, that have an interest in the mining and construction industries. This enables us to offer our clients diverse financing options.

Q: What innovative technologies has FIMSA released into the market recently?

A: Our entire production team is under our control, which separates us from our competitors. The entire process, from design and manufacturing to installation, is overseen by our staff. Due to this unique structure, we have been able to develop a range of new technology, including new engineering software intended to speed up and improve the design process. We have become the Mexican representatives and distributors for two world leaders in advanced technological equipment that is currently unavailable on the Mexican market. One is an Australian company that specializes in metallurgy and manufactures groundbreaking technology for metallurgical recovery and gravimetry. The technology increases production levels significantly while reducing operating costs. The second is a South African team who specialize in magnets, a tool that is used extensively throughout the process of iron production. Last year we began introducing the products to the Mexican market, and we have had encouraging results so far. These relationships have helped us to establish our position.

Q: What is the process FIMSA follows when developing new projects?

A: With new projects it is vital to understand what cost and production expectations the client has, and with expansion projects we must cater to the client’s specific needs whilst taking into consideration any restrictions to which they are subject. Once the project moves into the manufacturing stage we maintain close client contact. There are always modifications that need to be addressed so it is crucial that we remain flexible. We are currently developing an underground conveyor with Minera Frisco, which is the largest project we have worked on. The machine is designed to transport mineral underground instead of overland via trucks, which is an extremely costly method of transportation. We have been working on the project for four years, and despite the inevitable bumps along the way we are now in the final completion stage. It is a 5km conveyor which has been completely designed, manufactured and installed by FIMSA, and will reduce costs and improve efficiency for Minera Frisco.

Q: What challenges has FIMSA faced when attempting to introduce new technology into the marketplace?

A: In certain projects, we have substituted old technologies and equipment for more modern and efficient ones which not only improves productivity but also saves time, space, and funds. It can be challenging to convince industry leaders of the importance of implementing these technologies because mining is an inherently traditional business, run by members of the older generation who are accustomed to certain practices and do not immediately see the benefit of new machinery. We have recently diversified into offering our clients sub-contraction services. Not only do we provide our clients with equipment but we can also provide them with trained personnel to operate that equipment if necessary. The client then does not have to spend valuable time and resources training staff on how to operate the machinery, which in today’s climate with investment budgets under severe pressure, is a welcome method of improving productivity.