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SRK Re-enters Peru Market
- Created on Tuesday, 17 April 2012 16:37
SRK Consulting has positioned itself to grow with Peru’s expanding mining industry through a merger with Lima-based firm, SVS Ingenieros. SRK previously had an office in Peru but closed it in 2002 during the mining downturn.
Group CEO Andy Barrett explained that SRK and SVS have enjoyed a strong working relationship for about 20 years. “We have had quite a lot of work in Peru over the past five years or so and decided in 2010 to explore opportunities to re-establish SRK in Peru to better service our clients,” Barrett said. “SVS has a very strong position in the market, particularly with Peruvian companies, and they also do a lot of work for international companies.”
According to SRK, current projections indicate mining investment activity in Peru should continue growing by some $4 billion a year over the next four to five years. The merger with SVS will enable SRK to gain “a foothold in Peru via an established base from which to add new services,” Barrett said. “We aim to combine SVS’s strong capabilities in tailings, environment and rock mechanics with our mining and geology skills to serve our clients in Peru and augment our international teams, particularly in Latin America.”
SRK opened an office in Mexico and a second office in Argentina in 2011, in addition to their offices in Chile and Brazil.
SVS, founded in 1985, initially provided services in geotechnical and underground engineering, mainly to the mining industry, with a staff of about 20 engineers and scientists. In 1998, following the approval of environmental legislation for mining activities in Peru, it expanded its services to the environmental field. From 2001, the range of services expanded to the design of mine tailings and waste facilities, and mine services and field construction supervision (including QA/QC). It now has about 130 staff. About 90% of SVS’s current work is in Peru, with the remainder in Mexico, Ecuador, Bolivia and Argentina.
“Our three key goals for the business over the next five years will be to consolidate our market in Peru and diversify the range of technical services we can offer our current clients; expand the number of clients to which we offer engineering services to increase the size of our current market share in Peru; and ensure our technical staff can profit from its interaction with SRK’s personnel and improve the quality of the consulting work we do,” said SVS co-founder Carlos Soldi.
SRK Global will own 30% of SVS and senior SVS shareholders will hold an equivalent investment in SRK Global.