Inside global mining finance with Jairo Bernal CPA

Paddling a tiny canoe down the river deep in a Sumatran jungle to escape illegal miners is one of the more unusual situations Jairo Bernal CPA has found himself in during a career spanning four continents, two decades and several mining operations.

As former head of finance and company secretary at Chilean lithium mining company SQM, Bernal is adept at managing complex financial operations and navigating the challenges of cross-border business, from exploration to construction and operation of multi-billion-dollar investments.

“The resources and mining sector is unlike any other industry,” he says. “You’re constantly dealing with uncertainties, ranging from permitting and licensing to evolving government and sustainability regulations and requirements. In addition to that, there are operational and cultural differences to navigate.”

One such example is when Bernal was in Indonesia in 2014 to spearhead the financial operations for an ASX-listed gold miner. While he knew the area had some risks attached to it, Bernal says he hadn’t anticipated the challenge of navigating a treacherous river to get away from imminent danger.

“I was there to deal with budgets and systems’ implementations — I certainly wasn’t expecting to have to get in a canoe to escape from illegal miners who were threatening to set the camp on fire,” he says. “That was definitely not part of the job description.”

Striking gold

Bernal successfully escaped the threat in Sumatra and, while it is a long way from the start of his career as an auditor for BDO and PwC, he says he knew from the beginning that the mining and resource sector would provide him with a rewarding and challenging career.

“I’ve always had an interest in the resources sector,” he says. “As an auditor, I serviced mining, oil and gas clients, which made me realise I wanted to transition into that industry. However, I first needed to understand the distinct accounting practices and risk exposure in the sector.”

While he may not have been aware exactly how those risks might extend to his personal safety, the experience did not deter Bernal from again working on a mining site deep in the jungle.

He moved to Australian company OZ Minerals Brazil (formerly Avanco Resources Limited) in 2015, and found himself in the Amazon jungle at the Carajás mine site in northern Brazil, developing financial governance, overseeing the finance department and leading Enterprise Resource Planning implementation.

It was a role that presented a new set of challenges — convincing people to join him deep in the jungle to set up a mining business from ground zero.

“Persuading finance professionals and accountants to work and live in the jungle was certainly an interesting challenge,” he says.

“It’s pretty easy in our industry to recruit operators, engineers and geologists for environments like this, because it is part of the mining job description. But getting finance people on board is a much tougher sell.”

Acquiring new skills

Fluent in Portuguese, Spanish and English, Bernal credits his language skills as a key asset to his career. These abilities, he believes, played a crucial role in securing the necessary positions for the Brazil mine, bridging both cultural and professional gaps to make the venture a success.

“I moved from Colombia to the UK, then to Australia in 2010,” he says. “Being fluent in several languages has been valuable in overcoming language barriers and building connections with people,” the now Western Australia-based Bernal says.

In addition to the exposure to a range of countries, cultures and projects, for Bernal part of the attraction of working in the sector is the value creation that comes with it. Mergers and acquisitions are a common occurrence, as high-potential smaller exploration companies often attract larger players who take a significant stake or assume control as operations grow.

“Many of the companies I have been involved with have changed hands, and participating in those transitions has provided me with valuable experience in developing strategies for implementation and change management,” he says.

The project in Brazil was incredibly successful, and it was not surprising that it was taken over, Bernal says.

“We anticipated becoming a target sooner rather than later. We were prepared for a takeover, and when the company approached us, it came as no surprise. However, our primary focus was ensuring that all communications, procedures and controls were in place to facilitate a smooth transition.

“In the M&A space, success is measured by the ability to grow and transition effectively. Especially moving from a junior to a mid-tier company, an acquisition is often the natural outcome,” he says.

The key to managing this type of change is to be adaptable, Bernal notes.

“For me, the ability to set a strategy and quickly adapt to changes has been crucial to success. It’s also something I’ve helped organisations with — guiding them on how to respond to change effectively and efficiently.”

Talking the talk

Communicating clearly in the M&A space is paramount, because a lack of transparency can create confusion within a team and lead to negative outcomes.

“Once it was clear a takeover was imminent, I ensured that everyone in my team understood what to expect and worked toward that goal collectively,” he says. “Similarly, when we acquire other projects, I foster collaboration with the various stakeholders while acknowledging and respecting our differences.

“In international teams it’s important to remember that, while we all share common goals, we come from diverse backgrounds and cultures. Understanding and respecting these differences is crucial, as it allows us to leverage them to our advantage.”

Bernal’s recent role at SQM included managing strategic growth in Australia and China. One of his key challenges was ensuring smooth communication among all stakeholders.

In a 50-50 joint venture with Wesfarmers, the company is currently building a refinery that is projected to produce 50,000 tons of lithium hydroxide annually. SQM also holds a 50-50 joint venture with Hancock Prospecting, which is currently developing the jointly acquired Andover project for A$1.7 billion.

“Mining is definitely a high risk, high reward industry,” he says.

“It is rewarding to see how mining companies evolve from exploration to construction, operations, then eventually becoming a takeover target or executing a takeover themselves.

“Witnessing teams work seamlessly through these transitions is truly phenomenal. I believe that is the greatest reward,” he says.

“Regardless of where the project is located, it’s about the satisfaction of getting the job done.”

One piece of advice

Never stop learning “In finance, it’s not just about completing your degree or earning a CPA designation — it’s about continuous learning for personal and professional growth.

Whether it’s staying current with tax laws and accounting standards, embracing new technologies and systems, learning a new language, mastering presentation skills or leveraging AI tools to enhance your work, these elements all contribute to being an up-to-date and integral finance professional.”