May 17, 2020

Mining equipment in Latin America: What does the future hold?

Machinery
mining equipment
Latin America
Mexico
Admin
4 min
Mining equipment in Latin America: What does the future hold?
Despite recent struggles in the mining sector, Latin America continues to be an important destination for mining investment, exploration, development an...

Despite recent struggles in the mining sector, Latin America continues to be an important destination for mining investment, exploration, development and equipment manufacturing.

During 2013, Latin America produced approximately eight percent of the global demand of mining machinery, according to data from Future Market Insights, and its contribution towards global mining equipment sales was registered at 15 percent during that same year.

The mining industry is expected to grow in the next six years as demand and consumption of natural resources, especially metals, continues to increase. The equipment market in Latin America is poised to be a hot spot for mining exploration and investment at a global level.

Hot spot for mining equipment

The region continues to be one of the largest producers of the world’s three most important metals: iron ore, copper and gold.

One of the key reasons growth of the Latin American mining equipment market continues to accelerate is the enhanced demand for these natural resources in recent years. The region currently produces 45 percent of the global copper, 21 percent of the global zinc, 50 percent of the global silver, and 26 percent of the global molybdenum.

• Related content: Mexico's First Female CEO in Mining

In addition, the introductions of next generation mining equipment such as Autonomous Haulage System (AHS) also serve as driving factors for the growth.

Market segmentation of Latin American mining equipment can be done on the basis of equipment, application and countries. On the basis of equipment, the Latin American mining equipment market includes mineral processing equipment, surface mining equipment, underground mining equipment, mining drills and breakers, crushing and screening equipment, etc. On the basis of applications, the Latin American mining equipment market segmentation includes metal ore mining, coal mining and mineral mining.

The main countries developing their markets have been Argentina, Brazil, Mexico, Chile, Panama, Peru, Ecuador, Colombia, Paraguay, Uruguay, Bolivia and Venezuela.

In addition, foreign investment, especially from China, the United States, Canada and Australia, is expected to play a significant role in the growth of the Latin American mining equipment market.

According to reports, the global mining equipment market will grow at a moderate CAGR of 8.6 percent from 2012 and 2018, and be worth $117 billion by 2018. Latin America is expected to be a major driver for this growth.

Major players

The Latin American mining equipment market is largely comprised of Argentina, Brazil, Mexico, Chile, Panama, Peru, Ecuador, Colombia, Paraguay, Uruguay, Bolivia and Venezuela.

Each country is known for its own approach in mining. Chile is known for the adoption and introduction of advanced technologies such as autonomous haulage system. Peru is the reserve of key minerals and has been witnessing a surging demand for copper and hence the expansion of the associated mining equipment market. Brazil has an integrated approach for the production and sale of mining equipment. Panama has an active stock operation (PSO) for the support of the mining industry.  In line with the positive future of the Latin American mining equipment industry, Peru and Chile are expected to receive double digit foreign investments in the next six years.

• Related content: Best Mining Companies to Work for in Latin America

For mining equipment manufacturers, some of the prominent players include Sandvik AB, Hitachi Construction Machinery, Komatsu Limited, Atlas Copco, Joy Global Inc., Breaker Technology, Astec Industries, Bucyrus International, Caterpillar Inc., China Coal Energy Company Limited, Tecpalsa, Tecmap, Tiesa and Igaretta. Among these, Komatsu Limited in the whole of Latin America, Tecpalsa in Colombia, Tecmap and Tiesa in Panama and Igaretta in Argentina are active players in the Latin American mining equipment market.

In terms of profitability for miners, commodities prices for gold and iron ore aren’t where they should be. However, top mining countries like Peru and Chile are expected to see an increase in the development of mining projects across the region.

What next?

According to BNamericas Mining Readers Survey 2014, 44.4 percent of mining company respondents saw Chile as the South American country with the best mining investment climate. Chile was followed by Peru (22.2 percent), Brazil (14.8 percent) and Colombia (7.4% percent).

As the second largest producer of both copper and silver, and the sixth largest producer of gold, Peru is expected to receive $56 billion of investment for mining development.

• Related content: Report: Global mining equipment market worth $95.14 billion by 2022

One of the most significant challenges will continue to be infrastructure and the need for significant development over the next few years. Willis, a leading global risk advisory organization, reports that Latin America will have to invest about  nine percent of its GDP in infrastructure every year from now until 2020 inclusive in order to eliminate the gap between it and South-East Asia.

As of today, Latin America and Asia Pacific are the leading regions in the global mining equipment market on the basis of coal mining, oil refineries, and other underground mining activities. Propelled by the growing mining production and other related sales in China, India, and Indonesia, the mining equipment market is expected to expand remarkably in the next few years.

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Dec 3, 2020

Net zero benefits the mining industry and the environment

digital mining
Oren
Emitwise
mining
Dan Brightmore
3 min
Learn how to future proof your business for a zero-carbon world with help from Emitwise and the Oren Marketplace.
Learn how to future proof your business for a zero-carbon world with help from Emitwise and the Oren Marketplace...

How do we get the world to net-zero faster?

Emitwise’s founders, Mauro Cozzi, Eduardo Gómez and Ben Peddie, approached a network of more than 100 of the world's largest enterprises and asked their CEOs, CFOs, and sustainability managers the big question: How do we get the world to net-zero faster? The challenge many shared was the lack of timely and accurate emissions data to enable strategic decisions. Companies often relied on annual audits of their carbon footprint for carbon accounting purposes. However, static yearly results were outdated upon publishing.

Emitwise saves companies an average of 260 working days a year by automating their scope 1, 2 and 3 emissions data. With the added benefits of clean audit trails and auto-populated accounting reports in line with GHG Protocol, all at the click of a button. Their easy to use solution enables businesses to quickly identify the carbon hotspots to target, and the precise real-time data empowers teams to remain agile and respond effectively, making achieving those goals possible.

Unique AI Technology

Emitwise’s unique AI technology empowers businesses to automatically measure, report and reduce their carbon footprint across their operations and supply chain, future-proofing companies for a zero-carbon world. It is the only solution that enables companies to fully automate their carbon accounting across all business units and suppliers, therefore liberating them from the drudgery of collecting and processing emissions data.

By using artificial intelligence to precisely measure emissions in real-time, businesses can identify and tackle carbon hotspots swiftly, enabling them to devise a trackable roadmap to net-zero carbon. At the same time, accurate audit trails and auto-populated annual reports ensure that companies comply with international reporting requirements, and align businesses with global climate targets to mitigate risk across their operations and supply chain. 

The Oren Marketplace

Environmental management, social license to operate, safety, renewable energy to lower emissions and operational efficiency for mining can be supported by a range of digital solutions enabling dynamic operations. To address these issues, Shell and IBM joined forces to create the Oren Marketplace – the first B2B solutions platform for the mining sector. 

With the adoption of many of the digital solutions offered through Oren, mining companies can adapt in real-time to risks or adjust plans ahead of a problem occurring. The goal is a shift towards proactive management as the optimal outcome for all stakeholders – community, shareholders, and employees.

Emitwise was founded with the goal of helping industries across all sectors reduce their carbon footprint. Similarly, Shell aims to become a net-zero emissions energy business by 2050, or sooner, in step with society and its customers. And Oren is focused on offering innovative products and services that can help mining companies track and reduce their emissions. 

“Oren is the starting point for how we help our mining customers to de-carbonise,” explains Carol Chen, Global Lubricants Marketing, Vice President, Shell. “It’s our ambition to work with sectors like mining to help them find their own pathway to net-zero emissions through collaboration. The Oren marketplace offers a great opportunity for collaboration between the miners and technology companies that are joining this digital marketplace.” 

Web Summit

Emitwise will be showcasing its vision for a net-zero future live from Lisbon at this year’s Web Summit. Bringing together the people and companies redefining the global tech industry, the online event welcomes 100,000+ attendees from around the world to hear from more than 800 speakers and view offerings from 2,500 startups covering a vast range of topics from Data Science and Climate Change to AI and Machine Learning. To find out more and book your ticket visit Web Summit. 

Emitwise is one of many solutions providers on the Oren platform seeking to address the pain points and environmental concerns of heavy industries like mining. To discover a range of solutions that can further support your operation’s digital transformation and commitment to sustainability, visit the Oren Marketplace.

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