Opportunities for mining suppliers

Opportunities_mining_suppliers

Investment opportunities

  • Explosives purchases is projected to reach US$3,271 million by 2020.
  • Open-pit equipment 1,800 off-road trucks is projected to be acquired by 2020, representing a total of US$4,880 million.
  • Water Efficiency US$2,300 million in investment between projected plants and total requirements.
  • Training in the sector will be worth over US$200 million by 2020.

Explosive

Water Efficiency

By 2020, demand for water is estimated to increase by 15 m3/sec to supply projected output.
Using only seawater would raise the industry’s costs by more than US$4,000 million by 2020, equivalent to US$0.30/lb of copper.

Value of the opportunity
At least US$2,300 million in investment between projected plants and total requirements.

Engineering

Over 20 engineering companies operate in Chile, representing annual sales of more than US$45 million, and 75% have foreign capital.
Mining accounts for 57% of demand.
There is a portfolio of mining projects worth US$112,000 million.
The increase in operating costs calls for innovative solutions.
Mine closure law.

Value of the opportunity
Demand for engineering services in the mining sector is estimated to reach over US$36,000 million by 2020.
A similar value is estimated for sectors other than mining.
Construction work and equipment related to engineering companies may represent a further US$29,700 million.
Engineering for closure plans may reach US$20 million per project.

386 mineria cie 2015

Equipment

Open-Pit Equipment
Chile’s open-pit mining industry is among the largest in the world and is a key market for high-tonnage trucks and all related services.
The increase in prices is encouraging the appearance of new players, but always related to integral services.
The opportunity calls for numerous goods and related services.

Value of the opportunity
It is estimated that over 1,800 off-road trucks will be acquired by 2020, representing a total of US$4,880 million.
As well as trucks, the opportunity also includes ancillary equipment, large shovels, tires, maintenance services, spares and training.
The total value reaches over US$10,000 million.

Underground Equipment
Much of the technology used is not developed locally.
This equipment is used in few large mines but in many small and mid-sized mines. The most used items are low-profile front loaders and Jumbo drills.
Over the past five years, around 250 LHD loaders have been imported.

Value of the opportunity
It is estimated that over 850 LHD loaders will be acquired by 2020.
Provision of LHD equipment can be expanded to include supply of Jumbo drills and tippers.
The total value reaches over US$535 million.

Conveyor Belts
At present, an estimated 88% of conveyor belts supplied to the Chilean mining industry are imported and even local products correspond to international brands produced directly in Chile.
The total market has an annual value of approximately US$90 million.
There is an opportunity for manufacturing and marketing related to services.

Value of the opportunity
Installed capacity of conveyor belts in Chile will reach over 501,000 meters by 2020.
Purchases by 2020 will reach US$686 million.

Mill Balls
The market has an estimated annual value of US$800 million.
Over 95% of the market is supplied by multinational companies with plants in Chile.
This is an expanding market undergoing structural changes: mergers and acquisitions.
Products are needed that cost less, last longer and are more sustainable.

Value of the opportunity
Accumulated demand for mill balls in Chile will reach over 3.2 million tonnes by 2020.
Purchases by 2020 will reach US$6,761 million.

Explosives

Demand for explosives and, specifically, ammonium nitrate in Chile reaches almost 650,000 tonnes per year, equivalent to some US$360 million.
Growing output combined with lower ore grades implies estimated annual growth of over 5% through to 2020.

Value of the opportunity
Purchases of explosives will reach US$3,271 million by 2020.
Services related to rock fragmentation are estimated to be worth 10% of the value of explosives.

Reagents-Flotation
Growing output of concentrate combined with lower ore grades and the increasing use of thickened tailings implies estimated annual growth of over 10% through to 2020.

Value of the opportunity
Purchases of flocculants alone are estimated to reach US$151 million by 2020.

Training

At present, large-scale mining companies devote approximately US$35 million to training.
It is estimated that over 52,000 operators will need to be trained for the mining industry by 2020.
Market without leadership.

Value of the opportunity
Training in the sector will be worth over US$200 million by 2020.

Over 52,000 operators will need to be trained for the mining industry by 2020.

mujer_casco

Comments are closed.