Surging Minerals Demand Powers Growth in Logistics

By Luke King

The global push for electrification is fueling mining activity across South America, creating both significant opportunities and complex logistical challenges for the breakbulk and project cargo industry.

Experts came together at Breakbulk Americas to discuss how the surge in demand for critical minerals like lithium and copper is driving new mining projects in remote locations, requiring innovative supply chain solutions and early collaboration among stakeholders.

Session moderator Leandro Brusque, special projects manager at Share Logistics, opened with compelling statistics that illustrate the region’s strategic importance. South America holds about 50% of global lithium reserves, yet less than a quarter is refined within the region.

Chile accounts for 25% of global copper production, and demand for critical minerals is expected to double in coming years, driven by electric vehicles, renewables and infrastructure development.

The challenge? 80% of new mining projects are located in remote or hard-to-reach areas, creating significant logistical complexity.

Ximena Fernández, functional material management lead for South America at Fluor Corporation Chile, outlined how electrification is shaping investment patterns.

Minerals like lithium and copper are essential for batteries, wind turbines and solar panels and, according to the International Energy Agency, demand for these minerals is expected to increase sixfold by 2015 compared to current consumption levels.

“Chile is still a top destination for copper and lithium investments,” Fernández said. “Argentina is now moving forward, especially in lithium energy. Brazil is also getting more interesting because of the green hydrogen that they can provide for batteries.”

She noted that Peru faces complications such as social issues and permitting delays, but silver and copper mines are still expected in the future.

Pablo Hanacek, head of industrial projects at DHL Global Forwarding Argentina, emphasized that his company has worked on most lithium projects in the so-called lithium triangle (a region in South America that spans parts of Chile, Argentina, and Bolivia). The challenge isn’t simply adapting to demand, but supporting customers through an ever-changing environment.

“Mining investments are tied more and more to logistics feasibility,” Hanacek said. “Access to ports, roads, energy supply, water are critical. You need to adapt the procedures and the solution to each project.”

He stressed the importance of environmental, social and governance considerations, including hiring local people as apprentices to develop employable skills that benefit communities beyond individual projects.

Early Integration and Regional Challenges

Both panelists emphasized that logistics considerations must be integrated from the earliest project stage and not treated as an afterthought during execution.

Hanacek identified permits and regulations as major bottlenecks, painting a sobering picture of the challenges involved.

“There are countries where a permit can take up to 15 years,” he said. “If you have the permit for construction, then you need the environmental permit. Different agencies, different reports to be presented, different challenges, and don’t get into a federal country where you have national, provincial, municipal and local communities or you’ll get into a vortex and you don’t know when you’re going to get out.”

He cited projects in Argentina where fields were discovered 40 years ago but still haven’t been executed due to regulatory hurdles.

When customers ask about maximum equipment sizes, Hanacek’s response is pragmatic: “Everything is possible, depending on how much you want to complicate your life!”

Remote locations at 4,000 meters above sea level create unique challenges beyond isolation. Equipment needs greater capacity, and strict medical checkups are required for workers at high altitudes to prevent constant medical evacuations.

Fernández highlighted additional complexities specific to mining projects: “I would always say the location, as projects are commonly in high altitudes. We have very complicated situations for weather conditions during wintertime.

“Sometimes we are more affected than other industries, I think, by social complaints. We have to be focused on communities. Social acceptance of the project sometimes is more important than other considerations, at least in Chile for example.”

Sustainability and Resilience

Mining companies are increasingly committed to sustainability and zero emissions, with many expecting to electrify 50% of their operations by 2026, said Fernández.

“For this zero-emission goal, we will need more copper, more lithium,” she said. “So in the end, it’s like a circle that it’s good for the planet, but it’s good also for our work, and our future in mining.”

Mining companies are seeking logistics partners who can provide electric or hybrid vehicles, warehouses with batteries or solar panels, and electric cranes. Rail transportation is also being considered more seriously as a way to reduce fuel.

Fernández defined resilience as the capability to adapt to changes, emphasizing the need to include multiple options in planning rather than simply reacting to problems.

“We have to have resilience more and more,” she said. “Our industry is very volatile to the change in the prices of the minerals as well. We have projects that are already confirmed, but then something happened with the price of the copper or the lithium, and we have to wait.”

Looking ahead five years, both panelists emphasized the importance of environmental commitment, community engagement and resource preparedness.

“It’s a collaborative approach among all parties,” Hanacek concluded. “And last but not least, especially in a region where we don’t leverage too much on technology, the digital integration between owner, EPC and freight forwarder is key."

Read more: South America's White Gold Rush

Top photo (L-R): Ximena Fernández, Pablo Hanacek, Leandro Brusque. Credit: Marco Wang Photography
Second: Ximena Fernández speaks on the main stage. Credit: Marco Wang Photography