Mining Equipment

An Expert's View about Mining, Quarrying and Construction Machinery in Chile

Posted on: 12 Jul 2012

Over recent years, the mining industry has been investing not only in mining development and expansions, but in developing their own sources of energy.

Mining Equipment A Top Export Prospect for Chile June 2012 Overview 2010 2011 2012 2013 In USD millions (estimated) (estimated) Total Market Size 2,848 3,622 4,704 5,550 Total Local Production 504 646 840 950 Total Exports 185 256 336 400 Total Imports 2,529 3,232 4,200 5,000 Imports from the U.S. 1,025 1,411 1,800 2,200 Exchange Rate: 1 USD 500 484 486 489 Total Market= Total imports + Local Production – Exports Source: Chilean Customs Data, industry experts and own elaboration) Chile is the number one source of copper in the world, responsible for producing 35% of world supply. For Chile, mining is 20% of GDP and represents 60% of the country’s exports. In addition to copper, Chile is also a major world supplier of molybdenum, gold, and silver. Chile is also a relevant supplier of non metallic minerals such as iodine, lithium, sodium and potassium nitrate. In 2011, the average price of copper was US$ 4/lb. Future contracts indicate that in 2012 copper prices will remain above US$ 3/lb during 2012. Projects are under development by the state-owned mining company, Codelco, and the private sector via companies such as AMSA, Xstrata, BHP Billiton and others. Chile currently holds the largest proven reserves of lithium under exploitation. Due to Chile’s current world market share of 62%, along with the demand coming from the battery powered automotive industry, lithium will be the focus of international investors. Currently there are only two companies active in the industry: Soquimich S.A. (SQM) and Sociedad Chilena del Litio (SCL). However, the government announced in February 2012 plans to open additional lithium mining rights via an international tender model. Over recent years, the mining industry has been investing not only in mining development and expansions, but in developing their own sources of energy. Mining companies are looking for renewable sources of energy in an effort to reduce the carbon footprint. The U.S., with over a 40% market share, remains the single largest mining equipment supplier. Important export opportunities in this industry will continue for those companies Top US rt 2 Expo Prospects in Chile 2012: Mining Equipment offering technologies and products that bring cost reduction, improved productivity and more efficient and cleaner processes. Freeport McMoran Copper & Gold Inc. out of Phoenix, Arizona is the only U.S. company mining company in the market. The major local mining players continue to be the Canadians, Australians and some European companies. Back to top Best Prospects/Services A brief list of mining parts, equipment and technologies on demand follows: • Equipment that requires regular replacement: o Crushers o Grinders o Off-road trucks (240-440 tons) o Cabbed truck chassis (+ 50 tons) o Parts for rock cutters o 360-degree revolving excavators o Cranes and screening machines • Environmental system solutions o Water treatment o Water desalination o Air pollution abatement o Mine closure o Carbon footprint reduction • Underground mining technology services • Wear-resistant materials Back to top Opportunities Industry projections indicate that between 2012 and 2018, investments by the private and public sector will exceed $ 60 billion, and U.S. exporters will continue to supply to Chilean importers Back to top Top US ort h 3 Exp Prospects in C ile 2012: Mining Equipment Resources EXPONOR: CS Certified Trade Show. June 2013: EXPOMIN: Expomin is a CS Certified Trade Show. The world’s largest mining trade show outside of the U.S. Expomin 2012 will take place in April 2012, in Santiago: • Chilean Copper Corporation: • National Society for Mining: • National Mining Company Association: • Ministry of Mining: • Ministry of the Environment: • Association of Suppliers to the Mining Industry: • National Mining Council: Back to top For More Information Please contact Marcelo Orellana, Commercial Specialist for mining equipment at the U.S. Commercial Service in Chile at or (56) 2-330-3455. You can also visit our website at The U.S. Commercial Service — Your Global Business Partner With its network of offices across the United States and in more than 70 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting Disclaimer: The information provided in this report is intended to be of assistance to U.S. exporters. While we make every effort to ensure its accuracy, neither the United States government nor any of its employees make any representation as to the accuracy or completeness of information in this or any other United States government document. Readers are advised to independently verify any information prior to reliance thereon. The information provided in this report does not constitute legal advice. The Commercial Service reference to or inclusion of material by a non-U.S. Government entity in this document is for informational purposes only and does not constitute an endorsement by the Commercial Service of the entity, its materials, or its products or services International copyright, U.S. Department of Commerce, 2012. All rights reserved outside of the United States.
Posted: 12 July 2012

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