Mining Equipment
Taking advantage of diversification
As mining investments have entered Brazil and new operations advance, demand for equipment is growing. The growth of activity in northern Brazil in particular presents a boon for equipment providers, who are allocating resources to establish bases in Pará state to be closer to customers. Komatsu has been at the forefront of this growth. Ricardo Alexandre Santos, vice president of the mining equipment division at Komatsu, explained: “The mining business at Komatsu has grown significantly. In 2017, we had about 400 employees; by 2024, that number has increased to over 1,500.”
Komatsu decided not to sell equipment through a third-party vendor, a standard model in many mining markets, prioritizing proximity to their customer base, highlighting the importance of the Brazilian mining market. A vital part of this growth has also been increased demand for sustainable solutions from customers. Ricardo said: “We are working on projects to create hybrid trucks utilizing multiple energy sources, including ethanol, which can significantly cut CO2 emissions.”
In the small and medium sized equipment space, JCB do Brasil’s backhoe loader, telescopic handler, and excavator business is seeing significant demand, prompting the company to ramp up its capital investments. As Adriano Merigli, president and managing director Latin America at JCB do Brasil said: “We recently completed a cycle with investments of R$120 million in 2020 and announced a new cycle of R$500 million for the next five years. This will fund the expansion of our factory and dealer network and initiate the production of new products in Sorocaba.”
Minax, a Minas Gerais-based equipment, personnel and service provider, has 40 years of history providing drilling, excavation, transportation, and earthmoving and rental equipment, and is well adapted to meet the surge in demand for its services. Victor Hugo, director of Minax, said companies increasingly opt to rent equipment: “This trend is especially strong in Brazil's northeast and north regions, where many companies opt to rent equipment rather than purchase it outright. This shift is driven by cost considerations and the need for flexibility.”
“We have plans to expand our structure in Sorocaba to accommodate local mining production. This investment underscores Brazil's importance in our global strategy, making it a hub for mining solutions across Latin America.”
Fabio Maia, VP Flow Control Business Line, Valmet South and Central America
U&M Mineração, a leading contractor in Brazil, reported managing over 300 million t of material in 2023, employing over 3,000 people across the major mining states in the country. Once a leader in the heavy construction segment, the company has shifted its focus entirely onto mining. As it approaches its 50th anniversary, Sergio Machado, CEO and Maurico Casara, commercial director of U&M Mineração, spoke about the importance of safety and environmental standards. Recognizing the backlog of existing and new truck fleets that lack advanced management software, or operate on alternative fuels, Casara said: “We have two major innovation projects: retrofitting existing equipment with autonomous technology by adding sensors and computers, and developing a hybrid truck project that captures and stores energy from braking.”
Another primary equipment provider strategically investing in northern Brazil is Correias Mercúrio, a Brazilian manufacturer providing conveyor belts for mining and other industries. Leonardo Sales, CEO of Correias Merúrio, discussed the company’s manufacturing base in the north: “The Marabá factory, completed in 2016, recently expanded its capacity by 50%. This factory focuses on heavy-duty belts for mining, but we also produce lighter belts for agribusiness. Being close to our clients is crucial. For example, delivering a belt to clients from São Paulo to Pará takes about 12 days by road, while from Marabá, it takes only 24 hours.”
In the material handling space, the Beumer Group, which is represented by FAM in Brazil, opened an office in Brazil in 2020. The company has been engaged on numerous brownfield projects, guiding systems to become more sustainable in line with industry expectations. Discussing the evolving nature of the Brazilian market, and how it was impacting its business, Paulo Costa, CEO of BEUMER South America, said: “The mining sector in Brazil has traditionally focused on commodities like copper, coal, gold, and phosphate. However, there is now a significant shift towards rare earth elements and lithium, driven by the rise of electrification and new technologies… This evolving market is prompting us to adjust our processes and technology to better address these emerging needs.”
“Our solutions are temporary and often used in the initial stages of mining projects or during emergency maintenance. Currently, we are heavily involved in iron ore, lithium, and metallurgical by-products. We have also worked with gold and manganese producers.”
Humberto Peixoto, Technical Director, Trimak Engenharia e Comércio
TAKRAF do Brasil, a prominent German equipment provider of crushing, processing and transportation solutions to mining clients, entered the Brazilian market in 2000 through a contract with Vale. The company benefits from Brazil’s industrial base, utilizing local partners as it does not have its own fabrication base in-country. TAKRAF has been delivering projects incorporating sustainability principles on a recent contract with the Port of Tiplam, Brazil’s largest by capacity, as Tiago Carvalho, managing director of TAKRAF do Brasil, discussed: “We provided a solution incorporating a tube conveyor. Unlike traditional conveyors, which are open-belt designs, the tube conveyor is fully enclosed. This design mitigates environmental impact by preventing wind from spreading materials in sensitive areas.”
The company is also leading the way in dry stack tailings management solutions, which are crucial for an industry that has undergone enormous change under regulatory pressure following the disasters at Mariana and Brumadinho. Carvalho continued: “We supplied Usiminas with a complete tailings processing plant. This project was the first DST solution implemented in Brazil, and it is now considered a benchmark for the industry.”
Another company contributing to the industry’s management and elimination of tailings dams is Huesker South America. The company makes products for soil reinforcement, drainage solutions, and overall improvement solutions, identifying a niche in the mining sector for their ‘SoilTan’ geosynthetic bags. André Estêvão Silva, managing director of Huesker South America, said: “One specific solution we offer is synthetic bags and textile containers for tailings storage, which are becoming increasingly in demand due to regulatory and environmental concerns.”
Core Case is a relative industry newcomer and a recent success story among Brazilian equipment providers. The company, founded in 2010, produces specialized storage equipment for drill core samples. Over the past year, Core Case has focused on integrating more technology into its products, including enhanced tracking technology and RFID and QR code tags to monitor cases from site to warehouse. Daniel Bortowski, director of Core Case, said: “We want to replicate our success in Brazil in markets like Canada, leveraging our successful products and new technology-driven products like the Smart Case to achieve this.”
“In terms of decarbonization, the company bets on electrification for small equipment. For heavy machines, JCB has chosen to focus its development on hydrogen powertrain. We are in discussions with various initiatives in Brazil to explore reforming hydrogen from ethanol.”
Adriano Merigli, President and Managing Director, JCB Latin America
Ambflex is a homegrown Brazilian company manufacturing products for environmental protection to prevent contamination from chemical and hazardous material spills. Nelson Pickler, Ambflex’s CEO, discussed how the company is taking advantage of the ESG wave dominating the industry: “After the recent environmental disasters in Brazil, mining companies have been scrutinized. They are now adopting more sustainable practices and aligning with ESG standards. Ambflex helps mining companies meet these challenges by providing containment systems that prevent environmental accidents and mitigate risks.”
Metso has been in the country for over 100 years and has more than 2,000 employees. Its physical footprint includes a castings foundry, crusher and screen factories at Sorocaba, which serve as production hubs for other regional markets. Metso is strengthening its capabilities in flotation and filtration solutions, which are vital for the Brazilian market. Marcelo Motti, VP for Metso Brasil, discussed how the mining sector’s growth in the past year can be difficult to manage: “One of the primary challenges is finding competent professionals. Attracting skilled engineers and professionals remains difficult. Additionally, Brazil's high cost of capital, driven by high interest rates, poses a significant hurdle.”
Valmet, the Finnish provider of flow control solutions, valves and pumps, also has a production unit in Sorocaba to assemble and test valves, as well as a strategic supply centre with products and components. Valmet’s mining business is growing, and the company is prioritizing sustainability and digitization to cement its market position. Fabio Maia, vice-president of the flow control business line at Valmet South and Central America, said: “We develop products designed to prevent gas leaks and reduce energy consumption. For instance, our valves are engineered to minimize CO2 emissions, and our supply chain partners must adhere to stringent ESG policies.”
Similarly, for Neuman & Esser, which provides compressors, process solutions and hydrogen generators for various industries, including mining, Brazil acts as a regional hub from which it can serve the Latin American market. The German company is expanding in Chile and recently announced investments as it expands its green hydrogen generation business across South America. Rafael Serpa, sales and application manager from Neuman & Esser, commented: “We are expanding our facilities in Belo Horizonte, quadrupling our assembly area, and in São Paulo, our R&D hub, to support decarbonization initiatives, collaborating closely with local industries to promote sustainable practices.”
Article header image courtesy of TAKRAF do Brasil