With its diverse geology, varied climate zones, and expanding urban centres, South America presents a unique set of challenges and opportunities for the geotechnical drilling industry. The continent's geological complexity, characterised by the Andes mountain range, extensive river basins, and active seismic zones, makes geotechnical drilling essential to infrastructure development. Additionally, the region's economic growth, driven by mining, oil and gas, and construction industries, has led to increased demand for geotechnical services.
Geological diversity
South America's geology is marked by extreme diversity, from the arid deserts of northern Chile to the vast Amazon Basin and the rugged Andes. This diversity poses both opportunities and challenges for geotechnical drilling. In the Andes, for example, active faults and volcanic activity require specialised drilling techniques and equipment. With its soft, water-saturated soils, the Amazon Basin presents different challenges, requiring careful planning to avoid environmental impact and ensure structural stability.
Diversity poses both opportunities and challenges for geotechnical drilling
For example, sonic drilling is highly effective in unconsolidated soils, making it suitable for projects in the Amazon Basin. In contrast, rotary drilling is often used in harder rock formations, such as those found in the Andes.
A Robbins 4.6m (15.1ft) diameter Crossover machine was used in the Andes Mountains of Chile in the last quarter of 2021. The XRE TBM bored a 3.3km (2.1 mile) long tunnel for Chile's Los Condores Hydroelectric Power Project (HEPP) and project owner Enel, where it encountered tuff, sandstone, breccia, and conglomerate with sections of high-pressure water inflows. Ground cover reached up to 450m (nearly 1500ft) above the tunnel, with rock strengths maxing out at 60MPa UCS.
"Towards the end, [the TBM] exceeded expectations. Crossover TBMs are suitable for Andean geology of sedimentary and volcanic type, where there is a great range of rock strengths and hydrogeological conditions," said Ricardo Riveros Puratic, project engineer for Enel, explained.
Seismic activity
The Andean region is one of the most seismically active areas in the world, lying on the boundary between the South American Plate and the Nazca Plate. This tectonic setting leads to frequent earthquakes, making seismic risk assessment a critical component of geotechnical investigations. Drilling in such areas often involves deep boreholes to assess the stability of bedrock and the potential for liquefaction in overlying soils.
Key sectors driving demand
Mining is a significant driver of the geotechnical drilling industry in South America. Countries like Chile, Peru, and Brazil are among the world's largest producers of copper, gold, iron ore, and other minerals. In this context, it is worth noting that in mid-2024, the Chilean state-owned copper miner Codelco, one of the world's largest copper producers, reported a continued output decline year-on-year. This has come about despite the investment of US$ 1.383 million in 2021 in the Rajo Inca project to give continuity to División Salvador. Designed to provide continuity at Salvador for at least 47 years, production went from 60,000t of fine copper to 90,000t per year through a change from underground to surface mining.
Developing new mines and expanding existing ones, such as Codelco's Salvador, requires extensive geotechnical investigations to assess the stability of mine sites, design tailings dams, and ensure safe extraction processes. The depth and scale of drilling operations in mining are often substantial, requiring specialised equipment and expertise, too.
Infrastructure development
The economic growth in many South American countries has led to increased investment in infrastructure, which in turn drives demand for geotechnical drilling services. Governments and private companies are investing in large-scale projects, such as transportation networks, energy infrastructure, and urban development. These projects require extensive geotechnical investigations to ensure they are built on solid foundations, creating a steady stream of work for drilling companies.
Rapid urbanisation in South American cities has led to significant investments in infrastructure, including roads, bridges, tunnels, and high-rise buildings. Major infrastructure projects, such as the construction of tunnels through the Andes (10 years ago, the Bioceánico Aconcagua Consortium proposed building a 52 km long rail tunnel through the Andes) or the development of new port facilities along the coast, require extensive geotechnical investigations, such as the significant investments DP World, a global leader in supply chain solutions, is making in its port terminals in Peru and Ecuador to enhance capacity and operational efficiency.
Renewable energy projects
The growth in infrastructure development is being mirrored by a regional focus on renewable energy, including wind, solar, and hydropower projects, which has, in turn, driven demand for geotechnical drilling. These projects often require site-specific investigations to ensure the stability of wind turbine foundations, assess the potential for soil erosion around solar farms, or evaluate the geological conditions for new hydroelectric dams.
The UN Climate Summit has reported that "In South America, 18.2GW of capacity was added in 2022 according to the International Renewable Energy Agency (IRENA), up 7.4% year-on-year. This is a faster growth rate than North America (6.3%) and just behind Europe (8.8%). And while the region has traditionally relied heavily on hydropower, with mega projects such as the Itaipu Dam on the border between Brazil and Paraguay, it is now investing heavily in wind and solar."
The geothermal market in Latin America and the Caribbean remains one of the key potential regions for growth
A 2020 report by the Inter-American Development Bank on the region's geothermal potential stated: "The region has geothermal potential of between 55GW and 70GW which remains mostly untapped," and that "the geothermal market in Latin America and the Caribbean remains one of the key potential regions for growth for the global geothermal energy industry."
However, such potential developments are not with their concerns and obstructions, as environmental sustainability is a significant challenge for the geotechnical drilling industry in South America. Many drilling projects occur in ecologically sensitive areas, such as the Amazon rainforest or high-altitude regions of the Andes. The potential for environmental damage, including deforestation, soil erosion, and water contamination, necessitates strict adherence to environmental regulations and the adoption of best practices in drilling operations, which, in turn, increases the cost of the work and has the potential to slow progress. Moreover, there is increasing pressure from governments and communities to ensure that projects minimise their environmental footprint and contribute to sustainable development.
The regulatory landscape for geotechnical drilling varies significantly across South America, with each country having its own laws and standards governing drilling operations. Navigating this complex regulatory environment can be challenging, particularly for international companies operating in multiple countries. Compliance with local regulations, obtaining the necessary permits, and adhering to environmental and safety standards are critical for successfully executing drilling projects.
Access to remote areas
Many of South America's most promising resource extraction or infrastructure development sites are in remote and difficult-to-access areas. The logistical challenges of transporting drilling rigs, equipment, and personnel to these locations can be significant. The lack of infrastructure, such as roads or reliable power sources, can complicate operations. Companies must be innovative in their approach to overcoming these challenges, often relying on helicopters, specialised vehicles, or even building temporary infrastructure to support their drilling activities.
Due to these issues, foreign investment plays a significant role in the South American drilling industry. Multinational companies often bring advanced technologies, expertise, and capital to the region, contributing to the industry's growth. However, foreign companies must navigate some countries' complex regulatory environments, cultural differences, and potential political instability. Joint ventures and partnerships with local companies are common strategies to mitigate these challenges and gain a foothold in the market.
Domestic collaborations could also be vital to increasing regional drilling activity with initiatives such as the South American Infrastructure and Planning Council (COSIPLAN) that aims to improve connectivity across the continent. Such collaboration between countries could also lead to sharing best practices and technologies, further advancing the industry.
Political and economic challenges
While the future looks promising, the geotechnical drilling industry in South America will continue to face challenges of political and economic instability. Changes in government policies, economic downturns, and social unrest can all impact the industry, leading to delays in projects or changes in investment priorities. Companies operating in the region will need to be resilient and adaptable, with strategies in place to manage these risks.
With its diverse geology, growing demand for infrastructure, and expanding resource extraction industries, South America presents significant opportunities and challenges for geotechnical drilling companies. As the industry continues to evolve, driven by technological innovation, sustainability initiatives, and regional collaboration, it will remain a vital component of South America's growth and development in the years to come.
