Why is Chile a Fortunate Place for Mining Activities?

Chile is home to abundant production of copper, lithium, gold, & silver, among other minerals. It is a prominent supplier of copper worldwide & also holds massive reserves for lithium as well. Favorable government policies for mining activities, booming exports of metal, minerals, & coal, and the mounting interest of global mining companies to explore the country's mines are all generating immense demand for producing more & more mining equipment. However, the high initial costs of new these machines have pushed a transition toward mining equipment rental services in Chile, i.e., further backed by factors, such as significant taxes, maintenance costs, high depreciation, & insurance premiums.

As a result, there's a growing inclination of mining companies toward renting excavators, loaders, cranes, dump trucks, draglines, etc., to minimize their overall operational expenses and cater to the burgeoning mining activities in the country. In view of this, a recent research study by MarkNtel Advisors has projected around 3.8% CAGR for the Chile Mining Equipment Rental Market during 2022-27. In addition, the constant influx of investments in the country by mining companies like Freeport McMoran Copper & Gold Inc., Albemarle Corporation, and other firms from Canada, Europe, & Asia-Pacific would further propel the industry's expansion in the forthcoming years.

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Some Important Highlights associated with Chile’s Mining Business

·???????Favorable Government Policies

The government of Chile has been implementing various policies to benefit its mining sector by promoting mining activities, and Japan, Brazil, the UK, & China are showing active interest in buying the country’s mined products. It, in turn, is leading to the growing penetration of mining equipment rental services in the country.

o??Chile's national mining policy aims to diversify minerals' production beyond copper by 2025 and double investment in exploration by 2030. Moreover, it focuses on attaining 9Mt copper production by 2050.

·???????Increasing Prevalence of Electric Underground Mining

Using diesel engines in underground mining machinery produces noise, heat, & pollution, which can make the working environment even more uncomfortable. Adequate ventilation is also necessary while installing diesel-powered machinery. Hence, battery-operated or electric mining equipment has gained ground that promotes safer working conditions owing to no exhaust & low operational costs, thereby addressing the ventilation issues in underground mines.

·???????New Mining Technologies Driving the Need for Dump Trucks

As of now, excavators are the most extensively utilized mining equipment in Chile as they are more technologically advanced than others, with automated excavators being more effective than ever. In the event of a malfunction or operational flaw, they promptly supply information to service centers, thereby reducing both the time & cost of information flow. However, in the nearer future, dump truck rentals are likely to gain traction, especially for underground mining, owing to the growing use of automated machinery and the emergence of new technologies in mining.

·???????Penetration of Telematics into the Mining Industry

Rapid technological advancements & innovations like The IoT (Internet of Things), plasma technology, and 3D imaging in mining equipment are crucial aspects promoting the country's mining business. These technologies help overview the mining process in a simple yet effective way. Telematics aims to track fuel usage and aids in minimizing operational costs while also allowing for behavior identification of drivers like speed & harsh driving.

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A Promising Future Ahead

Chile's copper mines are among the major contributors to its economic growth. The surge in private mining investments shall continue to drive the demand for mining equipment & its rental services. Additionally, several national & international mining firms have recently started to focus on the country's untapped mineral potential. As a result, mining equipment rental businesses now have numerous options to market their goods & services.

With this, private sector investments have surged over the years and have broadened the potential for mining equipment rental services in Chile. The same trend is expected to provide countless prospects for the mining equipment rental industry in the nearer future, owing to significant copper mine divisions like the Tarapacá Region, Antofagasta Region, and Atacama Region.

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