Keeping Projects on Track

Q: How does Kepler manage its workforce capacity to overcome the tight timeframes?

A: Most of the time, clients come to us with contracts in which they tell us that we have 10-15 days to mobilize and create our teams. By the end of the first week, we have already contacted and selected our teams, so that in the second week we can bring the teams to the job site to perform medical exams and identify safety measures. Thus by the beginning of the third week, the teams are ready to begin working. When new supplies are needed, such as security equipment, our purchasing department finds the suppliers and begins buying immediately. We have a large network of suppliers, so we can have access to any materials across the country. Sometimes the contract stipulates that if the client cannot provide something then the contractor is obligated to acquire it. In these cases agreements must be made regarding when and where each material will be purchased and delivered. This is relevant since each construction material has a different purchasing time frame, for example, a cement mixing plant usually takes two months from mobilization and installation on site.

Q: Mining operations take place under harsh climate conditions. How do you prevent downtime and probable losses?

A: Each mine faces a different challenge and with our experience we apply the lessons learnt to the new mining projects in order to avoid committing the same mistakes. We have to adapt to the different environments and circumstances to each project. In Canada and European countries, companies have to provide their workers with jackets because of the extremely low temperatures, while we have to give workers cold water to avoid heat stroke. One of the most difficult tasks is establishing living quarters for the labor force, so we recruit a company to construct the living spaces that come with integrated kitchens, bathrooms, and bedrooms. Our main task within mines focuses on their construction rather than the development or exploration. We carried out internal meetings with our different departments to plan and determine the resources that must be delivered for mining construction projects. One of the biggest challenges we encounter during construction projects is the logistics process and it is important for companies to have strong logistics in order to efficiently transfer materials and equipment across different locations and on time.

Q: What is Kepler’s strategy to obtain a larger market share within the mining industry and which projects have given the company the most visibility?

A: We have worked on a variety of projects with renowned companies such as Peñasquito with Goldcorp, Palmarejo with Coeur Mining, and Pueblo Viejo in the Dominican Republic. The challenge we encountered in Palmarejo was that the project was isolated, which made it extremely difficult to reach it. Pueblo Viejo is one of the largest gold mines in the world, and in this project we learned about regulatory compliance and how to adapt to the customs and labor force of another country. We also gained a great deal of experience shipping materials to and from Mexico and we discovered that in the Tampico Port, it was crucial that the arrivals were on time because if they were early or delayed, the company would have to pay large fines.

Q: Which is Kepler’s strategy to differentiate from its competitors?

A: From 2010 onwards, mining players have noted that they cannot opt for cheap contractors since in the long term these do not fulfill their responsibilities. Some of the companies that were our competition in the past have disappeared because of low quality services. We are focusing on maintaining our standards, which is something that our clients notice. There are many elements to consider, from having the expertise and implementing processes on time to keeping costs low. Years ago, it was the operation and construction areas that made the majority of decisions but nowadays the purchasing departments are playing a more dominant role. The mistake that many of these departments make is that they usually go for materials that are cheaper and as a result low quality constructions are being made. The mining industry is going through a rough patch but 2016 looks hopeful since we have started the year negotiating projects with Peña Colorada and Peñasquito.