SANTIAGO – Mining equipment maker Metso Oyj expects to increase its revenue in South America excluding Brazil by 15% to 20% a year over the next two to three years as higher metals prices spur mining activity, a company executive told Reuters.
Eduardo Nilo, VP of Metso's operations in South America, excluding Brazil, said in an interview that the company's annual revenues in the region would be around $377-million this year.
Revenues mainly from selling and servicing equipment to process ore had grown by around 5% a year in the last couple of years as low copper prices discouraged investment in new mines, he said.
But several new greenfield mines are expected to begin operations this year, including Anglo American's Quellaveco project, in Peru, and a total of some 20 projects are in the pipeline, he said.
"We are optimistic. A year ago we weren't. ... The last two or three years most of these projects were waiting for approval and funds. Now most of them have the permission and they are in the last stage to take final decisions."
The price of copper on the London Metal Exchange has risen more than 50% since hitting a nine-year low in 2016. Chile is the world's largest copper producer and Peru is the second largest.