Sandvik strengthens its position in South America

South America represents 7 percent of total Sandvik revenues with Brazil being its 12th largest market and Chile its 15th largest. Sandvik has established itself as a growing market leader in mining technology and services across the region, with a strong presence in Brazil, Chile, Peru and other key mining markets. Its strategy combines targeted acquisitions, expanded software and service capabilities, and deeper customer partnerships.

“Mining operators throughout Chile, Brazil, Peru, Argentina and Colombia continue to seek opportunities to enhance and expand their production capabilities, supported by robust copper market fundamentals and the advancement of new project developments,” says Patricio Apablaza, Business Development Director at business area Mining.

Strong commodity prices, rising global demand for critical minerals and increased investments in renewable energy, electric mobility and infrastructure are supporting new mining projects, expansions and modernization programs across the region.

In South America, Sandvik has a strong position within underground mining equipment and drilling systems used in hard-rock extraction. Underground loaders are central to operations in many mines. Examples include the Toro. LH-series loaders, such as the LH514 as well as battery-electric models like the LH518iB. These machines load blasted rock and transport it to haul trucks or ore passes.

The strong demand is largely explained by the fact that many mines in the region, particularly copper mines in Chile and Peru, operate deep underground, where loaders are essential for daily production cycles.

Complete mining fleets for large-scale underground operations

Sandvik also supplies underground drill rigs and jumbos used for mine development and production drilling. These include DD-series twin-boom jumbos for tunnel development as well as long-hole production drills.

In many projects, loaders, trucks and drill rigs are supplied together as complete mining fleets. Safety equipment, including rock bolters that reinforce tunnel roofs and walls, is another important product segment.

One of the fastest-growing areas is battery electric mining equipment, which reduces ventilation requirements and diesel emissions underground – an increasingly important factor for modern mines. Many of the largest mines in the region have been in operation for almost 100 years. With increasing depth, there is a growing demand for autonomous mining equipment that reduces the need for ventilation tunnels and removes the risk to human operators.

Mining customers are looking for suppliers with high technology and life-cycle solutions close to the mine.

"Sandvik service centers close to customers ensure production without stops,” says Victor Dossetto, Vice President Sandvik Latin America for the Rock Processing business area.

Consequently, the region is home to several of the largest Sandvik customers globally, including Vale in Brazil, Codelco in Chile and Compañía de Minas Buenaventura in Peru.

Political support strengthens the regional mining outlook

Recent political developments are also supporting the sector, according to Dossetto. “There is widespread acceptance across the political spectrum that mining and mineral processing is critical for development. The political landscape may shift, but all sides agree that mining is essential to increase welfare and economic growth.”

Looking ahead, key industry trends include increased automation, digitalization and eco-efficiency.

Sandvik mobile crushers, screens and feeders are widely used in mining, quarrying and infrastructure projects across the region.

“Latin America represents our largest installed base of crushers in mining globally,” says Dossetto. “This creates a clear competitive advantage as customer demand continues to grow.”

Mobile crushers – including jaw, cone and impact models — are starting to become popular because they can be moved between sites as projects develop.

Screening equipment separates rock into different sizes before and/or after crushing, while feeders regulate the flow of material through processing plants to maintain consistent throughput.

Spare parts and aftermarket services represent a major source of revenue. Because crushing and screening equipment operates under extreme conditions, mines and quarries frequently replace components such as crusher liners and screening media.

An important aspect of the regional expansion strategy of Rock Processing is the new service center in Calama in northern Chile, one of the world’s most important mining hubs.

“As a major mining hub, Calama represents a strategic gateway to deliver best-in-class service for large mining operations,” Dossetto explains. “Mining is a 24/7 industry, and proximity to customers is crucial to avoid costly downtime.”

Machining solutions serve diverse South American industries

Beyond mining, Sandvik machining solutions are widely used across South America, serving the general engineering, automotive manufacturing, aerospace and energy segments.

General engineering remains the largest customer segment, particularly in Brazil, Argentina and Chile, where manufacturers produce industrial machinery, pumps, valves and heavy equipment components.

The automotive industry is another key sector, especially in Brazil and Argentina. Sandvik tools are widely used to machine engine blocks, gear systems and drivetrain components.

The aerospace sector, led by Brazilian aircraft manufacturer Embraer, represents a smaller but high-value market.

Energy-related industries also offer significant opportunities, particularly in Brazil’s offshore oil sector and Argentina’s shale formation Vaca Muerta, one of the world’s largest.

“These new open-pit project developments in Argentina represent a significant opportunity to strengthen our market position and expand our share in both the surface mining equipment and aftermarket segments,” says Apablaza.

Already dubbed “The Crown Jewel of the South American energy market”, Vaca Muerta also holds promises for machining solutions from Sandvik. “The plans for a massive regional pipeline for exports of oil and gas to neighboring countries will require the sort of skills and equipment that Sandvik can offer,” says Claudio Camacho, Managing Director of Sandvik Coromant in Brazil.