Inside Mexico's Mining Ecosystem

The mining equipment sector is entering a period of rapid transformation. In 2024, global OEMs generated over US$66 billion in machine, parts, and service sales. Yet technological disruption, commodity market volatility, and geopolitical uncertainty are forcing manufacturers to rethink strategies. In Mexico, these global trends are shaping investment decisions, fleet replacement schedules, and operational priorities.

“We must understand that the mining sector is volatile as we are working with commodities. When the market for mining products is depressed, companies reduce their production to keep costs steady. When the market is more dynamic, they increase production. Companies are always looking to reduce costs,” said Gerardo Guillén, Co-Founder, Elastómeros TAZA.

To remain competitive, OEMs operating in Mexico are investing heavily in technology. Battery-electric and hybrid equipment, smart mining systems, and digital solutions are central to growth strategies, though adoption remains gradual. For example, battery-electric vehicle (BEV) sales at Epiroc account for just 4% of annual revenue, and global fleet electrification is expected to take more than a decade due to replacement cycles. Chinese OEMs are leading in autonomous and electric equipment deployment, highlighting regional differences in technological progress, a challenge and opportunity for Mexico’s mining sector.

Manufacturers are also evolving business models locally. Many have expanded aftermarket and service operations, which often surpass new equipment sales, while acquiring smaller technology firms strengthens digital capabilities. Komatsu’s Mining Digital Solutions division and Weir’s acquisition of Micromine exemplify this approach. Additionally, companies such as Epiroc and Sandvik are restructuring supply chains to mitigate geopolitical risks, rerouting distribution channels, and leveraging local manufacturing to maintain operational continuity, including operations serving Mexico’s mines.

While OEMs navigate these challenges, Mexican mining companies are setting clear operational priorities. Reducing carbon emissions has emerged as a top concern. A recent MiningTechnology.com survey found that 29% of respondents globally identified lowering operational emissions as the sector’s primary focus over the next two years, followed by 24% emphasizing increased exploration activity. Many companies in Mexico are pursuing decarbonization strategies targeting significant reductions in Scope 1 and 2 emissions, with net-zero goals set within the next 30 years. Renewable energy adoption, on-site power generation, power purchase agreements, and diesel fleet electrification are key components of these initiatives.

Safety, productivity, and the production of transition metals remain high on the agenda. In Mexico, mining operations focus on copper, silver, and gold extraction, key metals for the global transition to electric vehicles and renewable energy. Globally, production of copper, nickel, and cobalt is expected to grow around 4% annually through 2025, while lithium output is projected to rise at a CAGR of 17%. Productivity improvements are being driven by remote operations, artificial intelligence, and advanced monitoring technologies that automate tasks and reduce operational costs, all solutions increasingly adopted in Mexican operations.

Despite these advances, Mexican mines face persistent challenges. Budget constraints affect equipment replacement and refurbishment plans, while skilled labor shortages continue to limit operational capacity. Rising costs for fuel, power, explosives, and other consumables, often exceeding 20–30%, add further pressure. Supply chain disruptions are prompting firms to seek alternative suppliers, and volatile metal prices introduce additional financial uncertainty.

Even amid these uncertainties, the global transition to electric vehicles and the expansion of power and infrastructure sectors are driving strong demand for minerals produced in Mexico. For OEMs and Mexican mining companies, this presents opportunities to deploy advanced technologies that enhance efficiency, productivity, and safety. Key areas of focus include:

• Advanced equipment supported by sensors and monitoring systems;
   

• Autonomous and remotely operated vehicles to improve operational safety;
   

• Electrification of mobile fleets, reduction of emissions, heat generation, and haulage costs while improving underground safety;
   

• Software and communication systems, including mine management platforms, drones, and AI-assisted monitoring; and
   

• Predictive maintenance, leveraging AI and monitoring systems to extend equipment life and reduce downtime
   

René Valle, Director General, MacLean Engineering, emphasized the importance of automation and digitalization. “How far we can go with automation and digitalization depends on the access we are given. Today, with the information and data generated by the equipment, we can achieve any objective set by the client. But it is pointless to generate a world of information if there is no one to monitor it, no direction for decision-making based on the evaluation of that data, and no long-term plan. There needs to be a strategy based on the data to determine the adequacy of what the provider delivers,” he says.