Large copper mining projects on the horizon signal good news for equipment manufacturers. According to UBS, these projects could kick off equipment orders as early as 2025 and continue with robust building activities into 2026 and beyond. This development is expected to particularly benefit European mining equipment makers.
UBS highlighted Metso as a top pick due to its significant exposure to copper and strong ties to mining capital spending cycles. The brokerage firm emphasized that copper plays a vital role in global mining capital expenditure, driving substantial order intake for mining original equipment manufacturers (OEMs).
“There is a strong, structural outlook for copper demand, which is driven by electrification,”
UBS stated. The firm pointed out that the market’s tight conditions necessitate substantial investment to meet future supply demands. Despite some uncertainty regarding the timing of large orders, historical patterns indicate that OEMs typically receive orders shortly after a project reaches its final investment decision (FID), rather than closer to the mine’s production commencement.
UBS referenced last year’s sizable orders for Pakistan’s $6 billion Reko Diq project as an illustration of the impact large greenfield copper mines can have on equipment manufacturers like Weir and Metso. These orders accounted for significant portions of mineral equipment orders in 2024.
While industry conversations generally support a positive outlook, some players exercise caution. For instance, FLSmidth anticipates increased activity commencing in 2026 based on discussions with engineering contractors.
The bank concluded that although 2025 might herald the beginning of a new wave of equipment orders, most of the copper project pipeline is likely to translate into business for OEMs in subsequent years like 2026, 2027, and 2028.
In summary, there are exciting opportunities ahead for equipment makers within the realm of large-scale copper mining projects. As demand continues to grow and investments pour in to meet future needs driven by electrification trends, OEMs stand poised to reap significant benefits from this flourishing sector.
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