Mining equipment indicates a powered or self-powered machine or vehicle used to extract metals or minerals from beneath the earth's surface and then transport them from the working places to an on-site warehouse facility, processing plant, etc. Sometimes, the miners or the mining companies require equipment for a shorter period, or they do not wish to incur the CAPEX in procuring & maintenance. Therefore, renting out or hiring the equipment is one of the most convenient options. The mining companies pay hourly or monthly charges only for the equipment they use. This way, the companies reduce their fixed & variable costs associated with the equipment.
The Chile Mining Equipment Rental Market is anticipated to grow at a CAGR of around 3.8% during the forecast period, 2022-27. The Chile Mining Equipment Rental market has gained prominence in recent years, owing to favorable government policies to promote mining activities, booming metal, mineral, and coal exports, as well as a growing interest from global mining companies to explore Chile's mines. Chile has been one of the leading producers of copper, lithium, iodine, rhenium, sodium, and potassium nitrate, among various others. Additionally, numerous countries, including China, the US, Brazil, Argentina, South Korea, Japan, etc., are some of the major buyers of Chile mined products. Furthermore, rising mining exploration activities in the country have increased the demand for mining equipment such as excavators, loaders, cranes, dump trucks, draglines, etc.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Key Companies Profiled||KOMATSU Chile, Caterpillar, Liebherr International, CASE Construction, MPM LTDA, FleetCo, Emeco Holdings, SK Rental, AMECO South America, Lanztec, Others|
|Unit Denominations||USD Million/Billion|
As a result, mining companies operating in the country are more inclined to reduce their overall operational costs by renting the equipment rather than investing a large sum of money in purchasing new equipment. According to the Observatory of Economic Complexity (OEC), in 2019, Chile exported copper ore worth USD18.4 billion globally. Moreover, most of the Chilean mines are operated by private players such as Freeport McMoran Copper & Gold Inc., Albemarle Corporation, and companies from Canada, Australia, Europe, and Asia, providing Chile with a constant flow of investments in mining.
Besides, in 2020, the country saw an upswing in mining activities due to the shortage of metals & other essential minerals in the neighboring countries. Consequently, the demand for mining equipment, including machinery & other equipment for surface & underground mining, also witnessed a notable upsurge and would continue to outpour during the forecast years as well.
Key Trend in the Market
Growing Use of Telematics in the Mining Industry
Rising technological advancements & innovation are fueling the mining industry’s growth. Automation, the Internet of Things (IoT), plasma technology, and 3D imaging are the major technologies that have a positive impact on the mining equipment industry. The utilization of telematics in the mining industry helps in the collection & integration of data in a single view to optimize mine performance. Moreover, telematics helps in tracking fuel usage, thus optimizing cost. Furthermore, telematics-enabled equipment could also track & measure operator behavior like harsh braking & speeding at the mine site.
Impact of COVID-19 on Chile Mining Equipment Rental Market
COVID-19 had a significant impact on the Chile Mining Equipment Rental market. In 2020, Chile was heavily dependent upon imports of mining equipment, primarily from North America, Europe, and China. The slowdown in the production of mining equipment delayed the order deliveries to the mining equipment rental companies. In addition, the mining activities were stalled in Chile for around 3-4 months. This further reduced the earnings of mining equipment rental companies, and the hourly rental rate of equipment also registered a decline. However, the resumption of mining activities in late 2020 & the opening up of new mining sites in early 2021 nullified the impact of COVID-19 on industrial earnings.