The Chile Mining Equipment Rental Market is projected to grow at a CAGR of 3.8% during the forecast period of 2022-27, says MarkNtel Advisors in their recent research report. The rising demand for coal, metals, and minerals for manufacturing products, construction of buildings, and electricity generation has accelerated the need for mining in the country. This led to an increase in investments in mining activities by domestic & foreign investors to cater to the growing requirement of the industry verticals across Chile and other economies. Moreover, the surge in the mining activities generated enormous growth opportunities for mining equipment rentals. For instance, in 2019, Codelco initiated the Chuquicamata Underground Mining Project in Chile for the production of Copper. Further, SK Rental supplied excavators, backhoes, loaders, articulated trucks, hopper, cistern, and crane to initiate the mine production.
Additionally, in 2019, Compañía Minera Teck Quebrada Blanca SA initiated the development of the copper mine project Quebrada Blanca Phase 2 to extract copper for supply in Germany & Europe, among other countries. These projects made a significant contribution to the revenue growth of Mining Equipment Rental market in Chile during the historical years.
Besides, the rising initiative by the Chilean Copper Commission to boost mining projects in the country with an estimated investment of USD72.5 billion by 2028 would open up tremendous growth opportunities for the Chile Mining Equipment Rental market. For Instance, the USD1,700 million marginal expansion plan of Los Pelambres Phase I by 2022 boosted the production of copper. These projects, along with 49 other mining expansion projects announced by the Cochilo, are expected to create immense growth opportunities for the Mining Equipment Rental market.
Earthmoving Equipment to Gain Traction in the Forthcoming Years
The extensive use of excavators, loaders & diggers in mining operations to dig soil have contributed to an increase in the demand for earthmoving equipment for mining. Additionally, high cost of maintenance & repair services of earthmoving equipment in Chile, which ranges approximately between USD7 to USD25 per hour for the equipment, would be a significant cost for the mining operators to bear. Therefore, mining operators generally prefer to rent earthmoving equipment for mining projects rather than buying.
Consequently, this increased the demand for earthmoving equipment rental by project contractors to initiate the mining operations in Chile. Additionally, the rise in mining activities for gold & iron in Chile would lead to an increase in the demand for earthmoving equipment rental during the forecast years.
Gaining Popularity of Metal Mining to Drive the Growth of the Market
Chile is a hub to perform mining operations across the world due to the presence of untapped metal resources such as gold, platinum, iron, etc. This resulted to an increase in foreign investments across the mining industry of Chile, which certainly contributed to the demand for equipment rentals for metal mining. Additionally, copper production in Chile gained significant momentum in 2019, supported by the growing demand for Chilean copper for the use in building construction, electronics manufacturing, etc. Therefore, increased the demand for mining equipment rental in Chile.
Moreover, the launch of copper mining expansion plan with an investment of over USD28.3 billion by 2028 by the Chilean Copper Commission is anticipated to gain opportunities for the Mining Equipment Rental market in Chile, reveals MarkNtel Advisors in their research report, "Chile Mining Equipment Rental Market Analysis, 2022-2027."
According to MarkNtel Advisors, the leading players in the Chile Mining Equipment Rental Market are KOMATSU Chile, Caterpillar, Liebherr International, CASE Construction, MPM LTDA, FleetCo, Emeco Holdings, SK Rental, AMECO South America, Lanztec, Others.
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