We assist METS (Mining Equipment, Technology, and Services) providers with insights, connections and export support, particularly in the growing Latin American market.
September is a big month for mining events in the Americas with both Exposibram (Belo Horizonte) and MINExpo (Las Vegas) taking place.
International mining organisations, governments and local communities are demanding immediate and proven solutions to achieve their environmental, social and governance (ESG) ambitions. This includes the implementation of novel technologies and changes to environmental regulations.
Environmental goals, including reduced emissions and achieving net-zero, are amongst some of the higher priorities for Latin American mining powerhouses of Chile, Peru, and Brazil.
Exposibram, on 9 – 12 September, presents a significant opportunity to showcase innovative solutions, network with potential partners, and explore new market opportunities in Brazil’s vibrant mining industry. The event features a comprehensive trade show and a technical congress, providing a platform to demonstrate cutting-edge technologies, share expertise, and engage in discussions on the latest trends and challenges in the mining sector.
The highly anticipated MINExpo 2024 in Las Vegas is also just around the corner. The Australia Pavilion, coordinated by Austmine, is set to be a hub for a strong contingent of Australian innovators connecting with major industry players. From 24 – 26 of September, delegations from Latin America will be attending MINExpo. There will be great opportunities for Australian METS companies to learn more about the market as well as how Austrade can inform, assist, and connect them with potential customers.
Austrade’s team from Sao Paulo, Lima and Santiago will be on the ground at Exposibram and MINExpo. They will be there to provide briefings on Latin America, support business introductions and give advice on doing business in these dynamic markets.
Despite legislative changes to Chile’s mining sector in recent years, Chilean mines still present opportunities for Australian METS involvement. Mineral exports comprised nearly 50% of Chile’s exports in 2023.
Chile’s mining sector is driving innovation in Latin America with some larger miners hosting technology and innovation challenges to solve their main pain points. Initiatives such as the Expande program provide real opportunities for Australian METS to pitch their latest solutions to reduce emissions, improve safety, and increase efficiencies.
Mines are increasingly focused on environmental sustainability standards and the rights of indigenous communities. This includes more regulations on water usage and for the preservation of biodiversity. Australian METS providers have an opportunity to leverage this focus, facilitating transitions to more environmentally friendly operations.
Chile’s recent National Lithium Strategy highlights this focus, emphasising the sustainable development of lithium production. This is most evident in their pivot away from water intensive solar evaporation methods towards innovative Direct Lithium Extraction processes. With increased investment and desire to integrate related technological solutions into existing Lithium projects, there is potential Australian value-add across the sector.
The recently introduced large-scale mining royalty will predominantly impact large mining operators with an output equal to or exceeding 50,000 MT of fine copper. The change is unlikely to have a significant effect on opportunities for Australian METS providers, as the demand for innovative solutions from high-output mining operators should continue to remain high.
Peru’s mining sector continues to experience growth with a 12.7% increase in copper production in 2023. This is despite some political instability, social unrest and the imposition of Supreme Decrees focusing on conservation. These may halt new mining petitions or concessions in certain regions to preserve ecosystems and limit illegal and informal mining operations.
To bolster the mining sector, Peru’s government is fostering a broadly favourable environment for foreign businesses to operate domestically. Due to the country’s vast mineral reserves, and an increased exploration into their lithium potential, there is continued focus on expanding productivity and mine output. With more than 90 Australian mining-related companies currently engaged in Peru, particularly in copper and gold projects, there is a recognition of the opportunities available, and progress in the sector is expected to maintain its positive trajectory.
There are numerous opportunities for Australian exporters in the Brazilian mining sector. Key among these is the provision of solutions to aid in the delivery of sustainably sourced resources alongside minimising the environmental impact and fossil-fuelled energy consumption associated with extraction. This includes the safe management of tailing dams and the electrification of mine sites and operations, with a wide array of technologies applicable across the sector.
Brazil’s complex taxation system can be a challenge for businesses importing goods and services. Brazil is implementing tax simplification legislation. The transitional period is not forecast to end until 2032.
Environmental regulations in Brazil have tightened following recent disasters, such as the fatal Brumadinho dam collapse, and the increasing number of illegal miners operating across the country. There has been a prioritising of sustainable mineral production, leveraging Brazil’s green energy capabilities. This has been complemented by investments in critical mineral production and initiatives to boost self-sufficiency.
If you are attending, or considering attending MINExpo or Exposibram, or would like more information on expanding your business into Latin America, please get in touch. You can reach out to:
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