Sandvik expands South American mining presence with major Buenaventura equipment order

Swedish engineering company Sandvik has secured a significant contract to supply underground mining equipment to Compañía de Minas Buenaventura, Peru’s largest publicly traded precious metals company. The order, valued at approximately SEK 320 million, marks a substantial expansion of Sandvik’s presence in South America and reinforces its long-standing relationship with the Peruvian mining sector.

The agreement includes the delivery of loaders and drills designed to enhance efficiency and productivity at El Brocal, Yumpag, and Uchucchacua, three of Buenaventura’s most prominent underground mining sites. With Peru being one of the world’s leading producers of silver, gold, zinc, and copper, modernising extraction methods with advanced underground mining equipment is crucial for maintaining output and improving safety standards.

Deliveries are scheduled to begin in the third quarter of 2025 and extend through the first quarter of 2026. Alongside the fleet of mining equipment, Sandvik will provide ongoing support, including spare parts, essential components, and maintenance services throughout the lifecycle of the machinery.

What Does This Partnership Mean for the Future of Mining in Peru?

Sandvik’s latest order with Compañía de Minas Buenaventura highlights the growing demand for advanced underground mining equipment in South America. As the region’s mining industry shifts towards greater automation and efficiency, companies are investing in next-generation solutions that reduce operational downtime and improve worker safety.

Peru has historically been a major hub for mining operations, with Buenaventura playing a key role in the country’s mineral production. El Brocal, Yumpag, and Uchucchacua are essential contributors to Peru’s silver and base metals output. However, ageing infrastructure and increasing environmental regulations have prompted mining firms to seek more sustainable and technologically advanced solutions.

By integrating Sandvik’s high-performance loaders and drills, Buenaventura aims to optimise extraction rates while ensuring compliance with stricter safety and environmental guidelines. The adoption of cutting-edge underground mining equipment is expected to streamline production cycles and reduce maintenance-related delays, ultimately boosting overall output.

Why Is Sandvik Strengthening Its Industrial Metrology and Digital Manufacturing Capabilities?

In addition to its expanding mining business, Sandvik is making strategic moves in industrial metrology with the acquisition of Verisurf Software, Inc., a U.S.-based provider of 3D metrology software solutions. This acquisition is set to enhance Sandvik’s position in the growing digital manufacturing sector, particularly among small and mid-sized manufacturers.

Verisurf, headquartered in Anaheim, California, is widely known for its modular software solutions that facilitate quality inspection, assembly guidance, and reverse engineering. With a customer base spanning aerospace, defence, and precision manufacturing industries, Verisurf has established itself as a key player in precision measurement and quality assurance.

By incorporating Verisurf’s technology, Sandvik aims to strengthen its digital ecosystem, providing manufacturers with advanced metrology tools that improve accuracy and efficiency in production processes. The acquisition aligns with Sandvik’s long-term strategy of enhancing automation and data-driven manufacturing solutions for industrial customers worldwide.

What Does This Mean for Sandvik’s Growth Strategy?

Sandvik’s dual focus on underground mining equipment and industrial metrology signals a broader effort to solidify its market position in two highly specialised fields. The deal with Compañía de Minas Buenaventura underscores its commitment to innovation in mining technology, while the Verisurf acquisition highlights its investment in digital transformation across multiple industries.

These strategic moves come at a time when mining companies and manufacturers are increasingly turning to automation, digital monitoring, and AI-driven process optimisation. Sandvik’s ability to integrate smart mining solutions and precision measurement tools into its portfolio provides a competitive edge, enabling it to cater to both extractive and industrial sectors.

How Are These Developments Expected to Influence Sandvik’s Market Performance?

The latest contract with Compañía de Minas Buenaventura is expected to contribute positively to Sandvik’s mining and rock solutions division, reinforcing its standing in South America’s resource sector. Meanwhile, the acquisition of Verisurf Software, Inc. is likely to boost the company’s industrial metrology segment, strengthening its footprint in digital manufacturing.

While the financial impact of these deals on Sandvik’s EBITA margin and earnings per share is projected to be limited in the short term, they align with the company’s long-term expansion strategy. Investors and analysts will be closely monitoring Sandvik’s execution of these projects, particularly in terms of customer adoption, market penetration, and post-acquisition integration.

With Peru’s mining industry poised for further technological advancements and the global shift toward digital manufacturing solutions, Sandvik’s latest moves indicate a calculated effort to maintain relevance in an evolving industrial landscape. The ability to combine traditional mining expertise with cutting-edge 3D metrology software solutions positions Sandvik as a key player in both resource extraction and industrial automation.