Turning Stricter Environmental Regulations into a Business Opportunity. The “Next-Generation Global Standard” Chosen by a Leading Chilean Copper Mining Company

Mining Services Company (Chile) – Schwager Powertech
Products: Soundproof Diesel Generator “DCA-100LSIE”

Equipment quality and reliability required to respond to increasingly stringent environmental regulations and rising production targets

Chile is the world’s most advanced and developed copper mining market, accounting for approximately 25% of global copper production. While great mining companies produce about 90% of the country’s copper, many small- and medium-sized mining companies are also active, each with its own distinct needs and supply chains.
The Chilean government has set a target to increase annual copper production from approximately 6 million tons to 9.6 million tons by 2040.
However, mining is an industry with a significant environmental impact, and environmental policies related to copper production are becoming an increasingly critical issue each year. Chile is also a leader in environmental regulation in Latin America, and construction machinery is no exception when it comes to exhaust emission controls.

Against this backdrop, Schwager, a leading company in the mining services industry, has shifted its focus toward introducing equipment with superior environmental performance and higher resistance to breakdowns.

Schwager is one of the oldest companies in the history of Chilean mining, having begun operations in 1859. Originally focused on coal mining, the company ceased those operations in 1997 following the complete closure of the Lota and Coronel mines. In 2011, Schwager re-entered the industry by establishing its mining services subsidiary, Schwager Mineria. Today, the company has contracts with 14 major mining companies, including Codelco, the world’s largest mining company (and leading copper producer). Schwager continues to grow as an industry leader, providing a wide range of services related to nearly all stages of the production process, excluding smelting and refining.

To provide sales and rental services for high-performance equipment that meets the mining industry’s demanding standards (high durability, energy efficiency, low noise, and international emissions standards), Schwager established its subsidiary, Schwager Powertech.

Establishing a new standard for Chilean mining through reliability, durability, and outstanding fuel efficiency

Schwager Powertech aims to deliver solutions to the challenges faced by the mining industry by commercializing high-quality machinery and solutions that meet industry demands. To achieve this goal, Denyo generators were selected.
Increasing copper production requires the introduction of reliable generators to support operations. Explaining the reasons for choosing Denyo, Mr. Alex Acosta Garay commented as follows:

“Denyo’s products possess all the elements we consider essential for the mining industry. To achieve Chile’s copper production growth targets, higher quality standards are required across all technical aspects of the industry. Denyo’s reliability, durability, and long-term economic efficiency derived from low fuel consumption fully meet the needs of the industry as a whole.”

In terms of fuel efficiency, Denyo generators have been evaluated as being more fuel-efficient than any other generators currently available in Chile, and this became one of the main reasons for switching from competing manufacturers.
In an actual fuel consumption comparison test, a 100 kVA generator—Denyo’s DCA-100LSIE (50 Hz)—consumed only 14 liters per hour, while a comparable model from a competitor consumed 17 liters per hour. This represents an approximately 17% improvement in fuel efficiency, translating into a monthly fuel reduction of 1,080 liters. Assuming a diesel price of USD 1.1 per liter, this results in cost savings of approximately USD 1,120 per unit per month.
Mr. Alex Acosta Garay also noted, “At the initial stage of considering the product lineup, Denyo presented us with comparative data on fuel efficiency, but we truly realized the difference when we compared it with the equipment actually being used on-site.”

Moreover, fuel efficiency was not the only reason Schwager Powertech placed importance on Denyo products and decided to enter into a distributor agreement. Another key factor was Denyo’s overwhelming reliability and durability.

“We highly value the fact that Denyo products do not fail even under extremely harsh conditions. High durability means that mining companies can use generators for longer periods, which leads to waste reduction and a lower carbon footprint. This makes durability an important point in addressing the challenge of reducing environmental impact.”
Before signing the distributor agreement, Schwager conducted on-site trials using a DCA-100LSIE test unit at a large-scale mining site, with verification carried out by customers and other stakeholders. The feedback was extremely positive. The low noise level made a particularly strong impression, leading users to feel that Denyo products were “machines on a different level than before.” Some stakeholders also commented that they had “never seen such a clean electrical waveform,” further confirming the high quality of Denyo products.

“What mining companies truly need today is the kind of reliability and durability that Denyo products offer. By actually using Denyo products at mining sites and allowing our customers to see them in operation, we help them clearly recognize the quality difference between Denyo products and those of other manufacturers they are currently using.”

Mr. Alex Acosta Garay also emphasized that, when introducing generators, he highly values the quality and responsiveness of Denyo’s after-sales service.

“At Schwager Powertech, we always ask detailed questions to fully understand our customers’ specific needs and strive to propose solutions tailored to each one. In some cases, we make minor modifications to equipment—for example, installing protective cages for safety or adding forklift pockets—but Denyo responds quickly and attentively to these requests. This level of support is another reason we trust them.”

Evolution and Partnership as a Mining Solutions Provider

Schwager’s long-term vision is to become “a company that provides all solutions for the mining industry.” In addition to maintenance and operations services, the company plans to broaden the scope of its business with mining at its core. It has already entered the machinery supply business through Schwager Powertech and is also planning further expansion into tunnel construction and technological solutions.

In closing, Mr. Alex Acosta Garay emphasized that Denyo’s support is indispensable to realizing this vision.

“Denyo’s products not only help advance industry standards, but we believe that the introduction of new technologies will also lead to improvements in the quality of our other services. We look forward to working together with Denyo to create solutions to future challenges, and we hope that our feedback will be actively reflected in product development that meets the specific requirements of the Chilean market.”

He also noted that Denyo’s continued commitment to innovation—such as research and development of new product concepts including hydrogen-based technologies—was another factor that gave Schwager confidence in entering into the distributor agreement.
The decision to become a Denyo distributor was driven by the tightening of emissions regulations, along with a shared recognition among both customers and Schwager that “higher-quality equipment is required.” As market demands continue to evolve steadily and incrementally, Schwager is expected to expand a range of solutions in order to establish an early position as a new standard-setting company for the supply of generators and welding machines.

For further information about Schwager Powertech, please visit the official website: https://www.schwager.cl/powertech ↗