FLSmidth is a full flowsheet technology and service supplier to the global mining industry. We enable our customers to improve performance, lower operating costs and reduce environmental impact.
FLSmidth’s divestment of its cement business marks a major shift toward becoming a pure-play mining company. What drove this transformation, and which commodities do you see as most promising for long-term growth?
We looked carefully at both businesses and their long-term prospects. In cement, growth opportunities are limited, and the market faces overcapacity. Mining offers far greater potential—demand for critical minerals, especially copper, will outstrip supply over the next two decades. It’s a high-growth, high-profit industry aligned with megatrends like electrification, AI-driven data centers, and power grid expansion. By focusing fully on mining, we can operate with one clear lens and serve customers better.
Copper is the best and safest bet—it’s essential for construction, electronics, and infrastructure, and no single country controls its price.
About 40% of our business is copper, followed by gold and phosphate. Lithium and coal are more volatile, so our focus remains on commodities with steady, long-term fundamentals.
FLSmidth describes itself as a technology and service supplier to the mining industry. What does that mean on the ground at a mine site?
A mine site has two parts: the pit and the process plant. The pit handles drilling, blasting, and hauling; our work begins when the ore is dumped into the first crusher. From there, we provide the full range of process plant technologies—crushing, grinding, size reduction, and, in copper’s case, flotation, where water and chemicals separate valuable material from waste. We don’t do EPC projects, but we supply all the core products and technology.
Few companies can deliver that full range because the industry has consolidated. FLSmidth expanded through acquisitions, including ThyssenKrupp Mining, which added key technologies. We’ve exited loss-making EPC and material-handling work and now focus solely on products, technology, and service—a much stronger position.
FLSmidth’s MissionZero initiative integrates technology, automation, and sustainability. How are these efforts delivering real reductions in cost and environmental impact?
Customers typically use automation systems from ABB, Siemens, or Rockwell. We add value through process optimization using AI and sensor-based technology. In flotation, for example, AI-driven camera systems analyze millions of bubble images in real time to optimize performance. We apply similar systems across the plant to guide adjustments that improve efficiency.
Our biggest sustainability focus is reducing energy and water use. Crushing and grinding account for about 3% of global electricity consumption, and efficiency gains can cut that by up to 30%, lowering both cost and CO₂. We also enable up to 90% water reuse—critical in places like Chile, where water is pumped hundreds of kilometers inland. Improving recovery rates means less waste and more revenue. In process plants, sustainability and profitability always go hand in hand.
Digitalization is advancing unevenly across the mining sector. What drives that gap, and how are automation and data changing the people and processes on site?
Much depends on location. Many mines are in remote areas—ten hours or more from the nearest city—so operators are cautious about adopting new technology without nearby technical support. Early pilots usually happen near cities where logistics are easier. Once proven, adoption spreads quickly to remote sites.
The difference between artisanal and modern mining is vast. Today’s large-scale mines are highly automated, efficient, safe, and community-focused. Mining’s reputation has transformed, with most companies meeting high environmental and safety standards. Automation hasn’t eliminated jobs—you still need skilled mechanics and technicians. Most change happens in control rooms, not in the field. Automation supports human expertise rather than replacing it.
Which regions offer the strongest growth potential for FLSmidth over the next five to ten years?
Central Asia—particularly Uzbekistan, Kazakhstan, and Mongolia—is very promising, with Uzbekistan moving fast to expand its mining sector. Saudi Arabia is another focus, investing heavily to develop its industry, while select African markets show strong potential. In the Americas, growth will mostly come from expansions at existing sites rather than new mines.
New greenfield development is likelier in frontier regions like Central Asia or Pakistan. The U.S. is backing mining expansion through active policy and funding, while Europe talks more than it acts. India is also emerging, with Lloyd’s Metals building one of the world’s most efficient iron ore process plants and companies like Hindustan Zinc and Hindustan Copper setting new benchmarks for innovation and operations.
Recent U.S. government investments aim to secure the critical minerals supply. How is that shaping new mining projects?
It’s quite busy behind the scenes. CapEx spending is still slow, but engineering activity is high. Projects typically move through several stages—engineering and development first, led by EPCM firms like Bechtel or Hatch, which then collaborate with us on the flowsheet and design. Orders often follow a year or more later, so we expect 2027 and 2028 to be strong investment years. Mining is cyclical—projects tend to move in waves.
Although we’re headquartered in Denmark, our main mining technology center is in Salt Lake City, and most of our resources are in the U.S. That gives us strong credibility and government support in North America. We see clear momentum building to accelerate investment and CAPEX in mining—a very positive sign for the region.
