Family Business Evolves to Design Plants for Mining

FIMSA’s Administrative Director, Rogelio Gaitán Salcido, recounts how his father founded the company following a long family tradition of involvement in the mining sector. “My father identified a need for equipment manufacturers in the industry. He saw an opportunity to become more than just another player and decided to start a service provider dedicated to equipment installation and maintenance.” Back then, says Gaitán Salcido, the Mexican mining industry was mainly composed of SMEs. “There were only a few big companies like Peñoles and Grupo Mexico. The market was very different from what it is today.” In those days, small companies could acquire all their equipment through FIMSA, including an entire grinding or beneficiation plant. FIMSA functioned in this way for more than 20 years until the market began to open through free trade agreements. Competition increased as the borders opened up, and the Gaitán family realized the time had come to evolve. After assessing market conditions, FIMSA became involved in equipment distribution and eventually stopped manufacturing altogether. The company gradually shifted to importing and distributing instruments until it could integrate different technologies into the plants it designs for mining clients. “The company’s transformation can be seen as an adaptation to the conditions of the industry,” says Gaitán Salcido. Today, FIMSA imports machines made by renowned international companies and integrates this equipment in the plants it designs and builds. Gaitán Salcido explains the main reason behind the decision to cease manufacturing in favor of importing, “We cannot match the expertise, manufacturing volumes, and levels of specialization held by our suppliers. For instance, FIMSA used to manufacture 15 crushing machines within a fruitful year, whereas my suppliers can now manufacture at least 500 per year.” FIMSA therefore left the manufacturing to the experts in order to pursue three areas of strength: design, engineering, and integration. This has paid off since the company can now offer mining companies a wider range of services, including the design and installation of crushing, screening, or washing plants.

Engineering is the key to ensuring a good plant design, according to Gaitán Salcido. He comments that the design stage is a long process and the company’s staff is free to focus on it for as long as necessary. The design phase entails many meetings with clients involving different departments, including end-users, developers, and operators “During the design stage, we sit down with our clients in order to understand their needs before pitching ideas and proposals for their plants. Once clients agree to a proposal, we walk them through the entire design, engineering, and installation processes for the plants,” tells Gaitán Salcido. The company’s administrative director also points out that turnkey projects are becoming a trend in Mexico’s mining industry, as evidenced by the amount of EPC companies currently involved in the sector. He explains that companies cannot spare any more time looking for a supplier to cover each part of a project, thus clients are now looking for a single integrated solution.

The company also excels at integrating equipment, which is a crucial skill when designing plants. “The machines we install operate as part of a system, not a single machine works on its own. Many factors have to be taken into account when everything is to be part of such a system,” asserts Gaitán Salcido. The company carries out FIT tests to simulate how its machines will work once they are integrated. Running these tests requires FIMSA to find tall, spacious, industrial buildings to fit cranes, conveyor belts, and other material managing equipment.

Throughout the 40 years that the company has been active, it has diversified its client portfolio and the services it offers, mainly because of the cyclical nature of the mining sector. For instance, FIMSA became involved in the construction sector by providing grinding and crushing services when international metal prices dropped, as the equipment needed for both industries was the same. “This diversification has helped us stay afloat during times of economic crisis, or when a particular industry saw its activity levels drop,” says Gaitán Salcido. Dust suppression systems provide another example of FIMSA’s cross-sectorial services. These systems were initially used in the construction sector because of the proximity of construction operations to urban areas under strict environmental regulations. Those dust suppression systems have since been met with a warm reception in the mining industry where dust pollution is a problem. “When implementing these machines in mines, we aim to have 90% visibility during the operations. Reducing the amount of dust in the air has environmental benefits and it also creates a healthier working environment.” However, the main difference between dust suppression systems for the mining industry is that, unlike their urban counterparts, they do not use any chemical additives, as these can affect the metal recovery process.

Although the broad services it offers will appeal to many mining companies, in order to service a sector with players scattered across the country, FIMSA’s sales team is always on the road. FIMSA also has a distribution center in Chihuahua with a stock of spare parts which mainly supplies clients in the states of Chihuahua and Sonora. Gaitán Salcido is aware of the current budgetary constraints faced by mining companies. In light of this, FIMSA has developed a strategy consisting of free assessments and diagnostic checks of client equipment and processes, enabling it to offer upgrades that require minimal investments. Meanwhile, FIMSA is also entering the subcontracting business, in which it supplies mines with the machines and staff necessary to perform grinding and crushing operators.