How Electric Mining Enhances Competitiveness and Attracts Global Capital

Electric mining is no longer just a strategy for improving operational efficiency. It has also become a key factor in strengthening mining companies’ position to attract global capital. In today’s global context, where investment funds prioritize industries aligned with decarbonization and sustainability, advancing towards fully electric mining operations offers a significant competitive advantage.

But why is electric mining attracting so much investor interest? Below, we explain the main reasons behind this growing appeal:

Efficiency and Risk Reduction: Factors that Attract Global Capital

One of the key criteria evaluated by investment funds is operational risk and the financial outlook of projects. Electric mining, particularly through the conversion of diesel trucks to 100% battery-electric models, enhances both aspects:

• It reduces exposure to the volatile costs of diesel, which heavily depend on international energy markets.
• It improves energy efficiency, allowing much more precise control over operational costs—essential in increasingly competitive markets.
• It reduces downtime and corrective maintenance, thanks to more robust technology with fewer mechanical components.

Furthermore, electrified operations typically offer greater cost predictability and a lower risk of unexpected interruptions, increasing foreign global investor confidence.

According to the report “Long-term Competitiveness of Copper Mining” published by EY, the electric mining vehicle market is expected to reach $9 billion by 2028. This growth reflects the global trend towards cost reduction, efficiency improvement, and meeting international investor expectations.

If you’re interested in learning practical strategies to optimize mining costs, check out our article on 3 strategies to reduce mining costs and increase profitability.

Energy Costs’ Impact on Mining Competitiveness

Additionally, according to the study “How digital innovation can improve mining productivity” by McKinsey, energy consumption in open-pit mining represents between 20% and 30% of total operating costs. This is heavily driven by intensive diesel use in haulage and loading processes.

Diesel is not only more expensive than electricity but also more vulnerable to international price fluctuations. Therefore, transitioning to fully electric systems significantly reduces these costs and shields operations from fuel price volatility. For investors, this means a much more stable and predictable financial scenario.

Moreover, optimized energy consumption makes mining projects far more attractive to global investors, who increasingly seek operations aligned with efficiency and environmental impact reduction.

ESG Compliance: Essential to Attract Global Capital

Today, large companies and global funds invest only in mining projects that align with ESG (Environmental, Social, and Governance) criteria. Electric mining contributes to this goal by:

• Dramatically reducing CO₂ emissions and other pollutants. In fact, the IEA estimates that electrification could cut emissions by up to 40% in open-pit operations.
• Eliminating risks associated with fuel spills, thereby lowering the chances of fines and environmental damage.
• Reducing noise pollution, thus improving relations with nearby communities.

These improvements not only enhance a company’s reputation but also expand access to funds and partners seeking sustainable projects and global opportunities.

Electric Mining: A Competitive Model to Attract Foreign Investment

Mining companies converting their diesel fleets to fully electric operations are positioning themselves better to secure foreign investment.

Beyond optimizing costs and minimizing risks, electrification demonstrates a clear strategy to address industry challenges and meet global sustainability demands. It also improves market access and strengthens corporate reputation.

This shift is already evident in multiple projects worldwide, confirming that electric mining is a real and growing trend. Learn more in our article: Trends in Mining Electrification: How is the Industry Moving Forward.

At NewSteel, we are fully committed to this transformation. We offer complete solutions to convert diesel trucks to 100% battery-electric, using cutting-edge technology and meeting the industry’s highest technical and environmental standards.

Would you like to learn how electric mining can strengthen your project and attract global capital? Contact us via Instagram, LinkedIn or WhatsApp.