The world is more connected than ever, and mining technology and service companies are no exception. As they expand their reach globally, they need to follow their clients to new markets, from a copper mine high in the Andes to the icey cold winters of Northern Canada. When exploring new markets, it’s the classic “chicken or egg” dilemma: You want to see success before committing to the expenses of a local operation, but as soon as you start generating revenue, the risk of being classified as a PE increases.
Los Andes Copper recently released their prefeasibility study for its Vizcachitas project. It is a notable project to follow since it is one of the few greenfield projects to advance in Chile these last few years.
Although large miners may get more attention, medium size miners have an important role within the mining industry that should not be overlooked. The Chilean Copper Commission (Cochilco) recently released a report that estimates investment in medium size operations for the period 2022-2031 will total approx. US$2.6 billion.
Brazil is an important mining market that provides some attractive opportunities to mining suppliers. The country’s mining association Ibram has recently released its report projecting an increase in investment from US$40.4bn to US$50bn for the 2023-27 period.
Chile has taken huge strides over the last 10 years as it has worked towards the goal of decarbonizing its electric sector. The growth of renewables has also uncovered weak points that needs to be addressed if the sector will continue to grow. Battery storage and transmission capacity are at the top of the list to help solve these issues.
Industrial technology companies rely on international markets since they often need to follow their clients to where the projects exist in the world. Working in foreign jurisdictions brings some unique challenges and risks. Permanent Establishment is one of them.
Each year, the Chilean Copper Commision (Cochilco), publishes a report that analysis junior mining investment. We have provided an overview of their 2022 report which gives us insight into the health of the Chilean junior mining market.
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