Written by Alonso Aquino – Associate, Peru
Introduction
The evolving war and geopolitical tensions between Iran and United States have once again exposed the structural fragilities embedded within global supply chains, particularly those tied to energy security and critical minerals. While historically centered around oil and gas, the conflict has increasingly expanded into the domain of minerals essential for the global energy transition, including copper, lithium, rare earth elements, and other inputs required for electrification and decarbonization.
Recent escalations in the Middle East have disrupted logistical corridors and heightened volatility in commodity markets. These disruptions underscore a critical reality: the energy transition is not only a technological shift but also a geopolitical one. Nations are now actively reconfiguring their supply chains to reduce exposure to high-risk regions and ensure long-term access to “critical minerals,” which are indispensable for renewable energy infrastructure, battery storage, and electrified transportation.
In response, the United States has adopted aggressive industrial policies aimed at securing alternative supply chains. This includes direct investment into mining projects abroad and strategic partnerships to reduce reliance on adversarial or unstable jurisdictions. Similarly, other global actors like the UAE are accelerating policies that prioritize supply chain resilience, domestic processing capabilities, and vertical integration.
This dynamic has catalyzed a structural reorientation of capital flows toward regions perceived as geopolitically stable and resource rich. Among these, Latin America—and especially Peru and Chile—has emerged as a central safe haven in the global race for critical minerals.
Latin America as a Safe Haven for Capital Preservation
In an environment defined by geopolitical fragmentation and supply chain uncertainty, Latin America is increasingly being viewed not only as a resource base but also as a strategic refuge for capital preservation. The region’s relative distance from geopolitical flashpoints such as the Middle East provides a degree of insulation from immediate conflict-related disruptions.
Within this regional context, Peru and Chile stand out due to their unparalleled copper reserves. Copper has become one of the most strategically important minerals given its central role in electrification, renewable energy systems, electric vehicles, and grid infrastructure. The decarbonization of global energy matrices is fundamentally copper-intensive; without it, the transition is structurally constrained.
Chile remains the world’s largest copper producer, while Peru consistently ranks among the top global producers. Together, these two jurisdictions account for a substantial portion of global copper supply, positioning them as indispensable actors in the energy transition.
Among other critical minerals, the Latin American region holds 40% of copper deposits being Peru, Chile and Mexico primary jurisdictions each with established extraction infrastructure.
From an investment perspective, this translates into key advantages:
- Resource Security: Large, high-grade deposits ensure long-term project viability.
- Established Mining Frameworks: Both countries possess mature regulatory systems and decades of mining expertise.
- Operational Continuity: Relative geopolitical stability enhances predictability for long-term capital deployment.
As global capital seeks refuge from volatility, investments in copper assets within these jurisdictions serve a dual function: exposure to high-demand commodities and insulation from geopolitical shocks.
Foreign Investment Shift and the Rise of Local METS Consolidation
The redirection of global investment flows toward Latin America is already underway. Major economies are actively deploying capital to secure upstream access to critical minerals, with initiatives including billion-dollar funding programs, strategic joint ventures, and bilateral agreements.
This influx of capital is generating a cascading effect across the mining value chain, particularly within the Mining Equipment, Technology, and Services (METS) sector. As mining operators ramp up capital expenditure (CAPEX) to expand production and capitalize on elevated commodity prices, demand for advanced technologies and infrastructure is accelerating.
This dynamic can be understood through a “virtuous cycle of investment”:
- Higher commodity prices—with copper forecasted at approximately $4.70/lb—are offsetting rising operational costs, including energy and logistics.
- Improved project economics are unlocking previously constrained CAPEX budgets.
- Operators are incentivized to adopt efficiency-enhancing technologies to maximize output during favorable market conditions.
As a result, mining projects across Latin America are entering phases of expansion, modernization, and technological upgrading. This creates a structural demand for:
- Processing plant upgrades: Implementation of real-time monitoring systems and AI-driven process optimization to stabilize plant performance and reduce variability. Increasing preference for scalable and prefabricated plant components, allowing operators to expand capacity incrementally without major shutdowns.
- Water and energy efficiency solutions: Recycling and reuse technologies to minimize freshwater intake. Reducing water content in tailings to recover process water and minimize environmental risk. Gradual shift from diesel-powered equipment to electric or hydrogen-based alternatives, particularly in haulage systems.
- Inventory Optimization Software: Predicting consumption patterns for critical spare parts and consumables. Real-time visibility across procurement, warehousing, and usage.
- Localized 3D Printing & Manufacturing: massive demand for on-site or in-country additive manufacturing for critical spare parts and equipment components. Tailoring parts to specific operational conditions, such as abrasive ore environments.
- Predictive Maintenance Tools: Deployment of sensors across critical equipment (e.g., crushers, conveyors, haul trucks) to monitor parameters such as vibration, temperature, and pressure. Machine learning algorithms that forecast equipment breakdowns before they occur, enabling proactive intervention
Given the scale and speed of this transformation, local METS providers are becoming critical enablers of mining operations. However, despite the existence of established extraction infrastructure, much of it remains technologically lagging when measured against global standards.
This gap is creating a distinctive window of opportunity for consolidation through mergers and acquisitions (M&A). Foreign METS are particularly well positioned to capitalize on this moment by acquiring local firms at relatively attractive valuations, integrating operations both vertically and horizontally, and developing regional platforms capable of servicing multiple jurisdictions in a coordinated manner.
In essence, Latin America is not only absorbing capital—it is undergoing a deeper structural reconfiguration of its industrial ecosystem. Those who move early will not merely participate in this transformation but will actively shape the competitive landscape that emerges from it.
Strategic Recommendations for Foreign METS Entering LATAM
For foreign METS seeking to participate in this transformation, a passive or incremental approach is unlikely to be effective. The current environment favors decisive, well-structured entry strategies that align with the pace of market evolution.
- Secure Prime Local Partnerships
Establishing strong alliances with key stakeholders such as established mining operators, local METS, and regulatory or community actors is critical to achieving operational traction. These partnerships go beyond simple market entry; they provide access to embedded networks, regulatory insight, and, crucially, the social license to operate. In Latin America, where community dynamics and permitting processes are often complex, local partners serve as indispensable intermediaries capable of reducing execution risk and accelerating project timelines.
- Capitalize on Current Valuations
Many local METS remain undervalued relative to their strategic importance within the mining ecosystem. This creates a compelling opportunity for acquisition-led entry strategies, allowing foreign firms to rapidly establish a presence while simultaneously acquiring operational capabilities and client relationships. Through targeted acquisitions, companies can integrate local expertise with global technological standards, effectively bridging the existing capability gap. Timing is a decisive factor in this equation as capital inflows into the region intensify, valuations are expected to rise, making early entry significantly more advantageous.
- Establish Market Dominance
Leading METS should prioritize the consolidation of complementary service lines while expanding their presence across key mining jurisdictions, particularly in countries such as Peru and Chile. The strategic objective is to develop scalable, integrated platforms capable of servicing multiple assets and clients under a unified operational framework. In this context, true market leadership is not merely a function of scale, but of the ability to deliver comprehensive, end-to-end solutions across the full mining lifecycle—from exploration support to processing optimization and ongoing operational maintenance. Establishing a localized presence at an early stage is critical, as it enables companies to build brand authority, develop a proven operational track record, and cultivate deep, long-term relationships with clients ahead of competitors. These advantages, reinforced by long-term contracts with tier-one mining operators, provide both strategic positioning and sustained revenue stability.
- Mitigate Immediate Risks
Establishing an early and localized presence in Latin America serves as a critical hedge against the growing volatility of global supply chains. Localization enables the development of regional supply networks, in-country inventory management, and proximity-based service capabilities, all of which contribute to greater operational resilience. It also allows firms to anticipate and adapt more effectively to shifts in trade policy or cost structures, rather than reacting to them from afar. Early entrants benefit from establishing these capabilities ahead of market saturation, securing preferential access to logistics infrastructure, suppliers, and skilled labor.
Conclusion
The convergence of geopolitical instability, energy transition imperatives, and supply chain realignment has created a rare and time-sensitive opportunity. Latin America has emerged as a strategic frontier for capital deployment and industrial consolidation.
For the METS sector, this moment represents more than incremental growth—it is a structural inflection point. The combination of high commodity prices, increased CAPEX, and technological demand is reshaping the mining ecosystem at an accelerated pace. However, this window will not remain open indefinitely. As more players enter the market and competition intensifies, first-mover advantages will become increasingly difficult to replicate.
METS companies seeking to establish a foothold in Latin America must act decisively and immediately. Those who move early will not only capture value but also define the architecture of the region’s mining services sector for the next decade. In a world where critical minerals are becoming the backbone of economic and geopolitical power, positioning within Latin America is no longer optional it is strategic.
Harris Gomez Group METS Lawyers ® opened its doors in 1997 as an Australian legal and commercial firm. In 2001, we expanded our practice to the international market with the establishment of our office in Santiago, Chile. This international expansion meant that as an English speaking law firm we could provide an essential bridge for Australian companies with interests and activities in Latin America, and to provide legal advice in Chile, Peru and the rest of Latin America. In opening this office, HGG became the first Australian law firm with an office in Latin America.
As Legal and Commercial Advisors, we partner with innovative businesses in resources, technology and sustainability by providing strategy, legal and corporate services. Our goal is to see innovative businesses establish and thrive in Latin America and Australia. We are proud members of Austmine and the Australia Latin American Business Council.
Disclaimer: This article is for general informational purposes only and does not constitute legal advice. It does not create a solicitor-client relationship, and readers should seek independent legal advice for their specific circumstances. Harris Gomez Group accepts no liability for reliance on this content.